Russia has brought approximately 180 companies, with an estimated value of $11.5 billion, under state control since its invasion of Ukraine, according to a report by UK Defence Intelligence.
“Foreign-owned companies have almost certainly been prioritized, including companies owned by Russians who live abroad,” the report states.
The report also highlights that the Kremlin has been redistributing assets to Kremlin-aligned businesspeople who support the war in Ukraine. This de-privatization is likely linked to Russian President Vladimir Putin’s call for a new nationalist elite forged by the ongoing conflict.
“Increased defense spending has almost certainly increased financial pressure on the Russian state, alongside economic sanctions and flows of capital out of Russia since the start of invasion,” the report noted.
Furthermore, the report suggests that Russia is highly likely establishing greater control over companies in “strategic” industries, such as defense, as part of its broader economic strategy in the context of the war.
Read more:
- Frontline report: Ukraine repels Russian assault waves in strategic city of Krasnohorivka, Donetsk Oblast
- No Russian troops in Chasiv Yar – Ukraine’s Armed Forces
- Russians poised for street battles in Chasiv Yar; Robotyne at risk – Deep State analysts
