Putin Expands State Power to Seize Private Firms Under Pretext of Security
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A sweeping new decree grants Putin's regime the authority to take over private companies, using Ukrainian drone attacks as justification. Critics warn this is a move toward authoritarian control and corporate expropriation.
President Vladimir Putin has signed a decree that dramatically expands the Russian state's ability to seize control of privately owned enterprises, under the guise of protecting against Ukrainian drone attacks. The order, effective immediately, targets key sectors such as fuel, energy, industry, communications, nuclear power, transport, and logistics—essentially any operation the regime deems critical to its interests or public welfare.
This decree allows the state to impose management on private companies based solely on a presidential instruction, bypassing any judicial oversight. The vague language means that a company can lose control simply for allegedly failing to meet security requirements or responding 'ineffectively' to attacks, with no clear criteria or independent assessment. Legal experts warn this opens the door to arbitrary asset seizures. Political analyst Abbas Gallyamov called it 'hybrid nationalisation,' highlighting how the state can now accuse firms post-attack and forcibly take control. Lawyer Andrei Grivtsov underscored the absence of transparency about who decides when intervention is justified. A representative of a major agribusiness holding bluntly described the decree as 'a tool to confiscate large assets from business under the pretext of non-compliance with security measures.'
'In practice, external management means a company loses all autonomy, cannot determine its own strategy, and is ultimately forced to sell under coercive terms,' said lawyer Sergei Uchitel.
This authoritarian measure comes as Ukrainian drone strikes on Russian infrastructure have increased, with 194 refinery hits in the first half of 2026 alone, surpassing the previous year. Major e-commerce platforms like Wildberries and Ozon have also suffered repeated attacks.
Deputy Prime Minister Alexander Novak has ordered oil companies to adjust operations to avoid shortages, while First Deputy Prime Minister Denis Manturov claims the decree will be used 'selectively' and is not a mass nationalisation. Yet, with all decisions centralized 'at the very highest level,' the move signals a further consolidation of state power at the expense of private enterprise and democratic norms.