Russian President Vladimir Putin has emphasized the importance of only seizing assets and transferring them to state ownership when it is necessary to protect Russia’s national security. Following the conflict in Ukraine in 2022, many foreign companies left Russia and some assets were sold off to local management. There has been an increase in cases where prosecutors have seized assets through the courts, with more than 1 trillion roubles’ worth of strategic enterprises and assets transferred to state ownership last year.
While state property was auctioned off in the 1990s, leading to the rise of oligarchs and a wealth gap, Putin stated that there is no need to review those deals if businesses are currently operating successfully. He emphasized that claims against current owners of assets are unnecessary, especially for those who are contributing positively to the country, solving social issues, and supporting national security. The finance ministry has also identified around 30 companies in which the state may reduce its shareholding while maintaining a controlling stake to encourage more private investment and increase budget revenues.
Putin clarified that the recent cases of seizing assets are not part of a privatisation review but are focused on situations where the actions or inaction of owners are directly harming the country’s security and national interests. The number of cases where assets are being seized through the courts has been on the rise, including those related to Russia’s defence industry and privatisations from around 30 years ago. The president stressed that the seizure of businesses is only justified in extreme situations that pose a threat to national security.
Several Western companies, including Fortum and Carlsberg, have had their assets temporarily seized by Moscow. Putin highlighted that the seizure of business should only occur in specific circumstances and not as a broad review of privatisation. He noted that the actions taken by law enforcement are targeted at returning assets to state ownership in cases where the owners’ actions are directly harming the country’s interests. The goal is to ensure that businesses are not negatively impacting national security and to maintain a balance between state ownership and private investment.
As the state looks to reduce its shareholding in certain companies to encourage more private investment, Putin emphasized the importance of fostering domestic private investment and supporting businesses that are contributing positively to society and national security. The focus is on creating a conducive environment for growth and development while ensuring that state assets are protected and optimized for the benefit of the country. By striking a balance between state ownership and private investment, Russia aims to strengthen its economy and generate additional budget revenues to support various social and economic initiatives.
