March 14, 2024

Nationalize It


Nationalize It
Industry in Russia. Alt-n-Anela, Wikimedia Commmons

A study conducted by Novaya Gazeta Evropa and Transparency International Russia reveals that, since the onset of Russia's War on Ukraine, Russian courts have received an unprecedented 40 demands for the nationalization of more than 180 private companies. The total assets of these companies amount to approximately 0.6% of Russian GDP.

The most commonly nationalized enterprises are those in the military-industrial complex, mechanical engineering, food, and fishing industries, as well as ports and real estate.

Ilya Shumanov, general director of Transparency International Russia, said that the state's interest in the defense sector stems from its need to control enterprises supporting the war. Additionally, real estate and land, particularly in key regions such as Moscow, the Moscow region, St. Petersburg, and the southern regions, are targeted due to their high value. In the fishing sector, nationalization serves to acquire fishing quotas.

Part of the privatization process entails accusing business owners of illegally possessing property and violating anti-corruption laws. In some instances, prosecutors seek to nullify transactions or business formations, citing violations of Russian Federation laws. However, some claims remain unpublished or classified, leaving the motivations of the Prosecutor General’s Office ambiguous.

There have also been cases where enterprises were nationalized following allegations of financing the Armed Forces of Ukraine by the companies' owners. For instance, the Investigative Committee of Russia demanded the seizure of assets belonging to Metinvest Eurasia, controlled by Ukrainian billionaire Rinat Akhmetov, citing funds that were transferred to the First International Ukrainian Bank.

Although cases of nationalization occurred sporadically in Russia before this surge, they were much less frequent. Throughout the 2010s, there were few claims for nationalization, and in 2020 and 2021, the Prosecutor General’s Office filed only three claims per year. The ongoing conflict has expedited the nationalization process, with claims being processed swiftly, sometimes within a month.

Ilya Shumanov highlighted three key features of this wave of nationalization. First, the Prosecutor General’s Office targets "risk groups," meaning individuals with dual citizenship, owners of offshore companies, and Russians residing abroad. Second, the FSB is clearly involved in nationalization cases, with its personnel and materials surfacing in multiple trials. Finally, the privatization wave is the consolidating core economic assets into fewer hands.

Shumanov identifies signs of consolidation in sectors such as the chemical industry, machine tool manufacturing, defense enterprises, ports, and the fishing industry. For instance, in the chemical industry, a significant portion of assets are now managed by the Roschim group, associated with the Rotenberg brothers, close allies of Russian President Vladimir Putin.

You Might Also Like

Migrant Flow Slows to Trickle
  • February 25, 2024

Migrant Flow Slows to Trickle

Immigration into Russia from Central Asian countries has slowed since the start of Russia's War on Ukraine.
Occupation Is Expensive
  • December 03, 2023

Occupation Is Expensive

An independent Russian news outlet reported that Russia is worse off economically because of its actions in Ukraine since 2013.
Like this post? Get a weekly email digest + member-only deals

Some of our Books

White Magic
June 01, 2021

White Magic

The thirteen tales in this volume – all written by Russian émigrés, writers who fled their native country in the early twentieth century – contain a fair dose of magic and mysticism, of terror and the supernatural. There are Petersburg revenants, grief-stricken avengers, Lithuanian vampires, flying skeletons, murders and duels, and even a ghostly Edgar Allen Poe.

A Taste of Russia
November 01, 2012

A Taste of Russia

The definitive modern cookbook on Russian cuisine has been totally updated and redesigned in a 30th Anniversary Edition. Layering superbly researched recipes with informative essays on the dishes' rich historical and cultural context, A Taste of Russia includes over 200 recipes on everything from borshch to blini, from Salmon Coulibiac to Beef Stew with Rum, from Marinated Mushrooms to Walnut-honey Filled Pies. A Taste of Russia shows off the best that Russian cooking has to offer. Full of great quotes from Russian literature about Russian food and designed in a convenient wide format that stays open during use.

Fish
February 01, 2010

Fish

This mesmerizing novel from one of Russia’s most important modern authors traces the life journey of a selfless Russian everywoman. In the wake of the Soviet breakup, inexorable forces drag Vera across the breadth of the Russian empire. Facing a relentless onslaught of human and social trials, she swims against the current of life, countering adversity and pain with compassion and hope, in many ways personifying Mother Russia’s torment and resilience amid the Soviet disintegration.

Fearful Majesty
July 01, 2014

Fearful Majesty

This acclaimed biography of one of Russia’s most important and tyrannical rulers is not only a rich, readable biography, it is also surprisingly timely, revealing how many of the issues Russia faces today have their roots in Ivan’s reign.

The Pet Hawk of the House of Abbas
October 01, 2013

The Pet Hawk of the House of Abbas

This exciting new trilogy by a Russian author – who has been compared to Orhan Pamuk and Umberto Eco – vividly recreates a lost world, yet its passions and characters are entirely relevant to the present day. Full of mystery, memorable characters, and non-stop adventure, The Pet Hawk of the House of Abbas is a must read for lovers of historical fiction and international thrillers.

 
Jews in Service to the Tsar
October 09, 2011

Jews in Service to the Tsar

Benjamin Disraeli advised, “Read no history: nothing but biography, for that is life without theory.” With Jews in Service to the Tsar, Lev Berdnikov offers us 28 biographies spanning five centuries of Russian Jewish history, and each portrait opens a new window onto the history of Eastern Europe’s Jews, illuminating dark corners and challenging widely-held conceptions about the role of Jews in Russian history.

Murder at the Dacha
July 01, 2013

Murder at the Dacha

Senior Lieutenant Pavel Matyushkin has a problem. Several, actually. Not the least of them is the fact that a powerful Soviet boss has been murdered, and Matyushkin's surly commander has given him an unreasonably short time frame to close the case.

The Samovar Murders
November 01, 2019

The Samovar Murders

The murder of a poet is always more than a murder. When a famous writer is brutally stabbed on the campus of Moscow’s Lumumba University, the son of a recently deposed African president confesses, and the case assumes political implications that no one wants any part of.

How Russia Got That Way
September 20, 2025

How Russia Got That Way

A fast-paced crash course in Russian history, from Norsemen to Navalny, that explores the ways the Kremlin uses history to achieve its ends.

About Us

Russian Life is the 31-year-old publication of an award-winning publishing house that also creates books, and other products for Russophiles the world over.

Latest Posts

Our Contacts

Russian Life
73 Main Street, Suite 402
Montpelier VT 05602

802-223-4955