Putin allows government to take control of critical infrastructure
Russian leader Vladimir Putin on Monday allowed the government of Russia — an aggressor state — to take control of privately owned critical infrastructure facilities if they are deemed insufficiently protected from Ukrainian attacks or other threats. This was reported by ERR News.
The powers introduced by the decree enable the state to gain control over the physical and financial assets, as well as the legal rights, of such facilities. They may be used if owners have failed to provide adequate protection or are taking too long to repair damage after attacks.
Which facilities are covered by the decree
The decision applies to fuel, energy and industrial facilities, as well as communications and transport infrastructure. It also concerns commercial logistics facilities that Russian authorities consider important for national security and economic stability.
The new powers were introduced a week after Putin instructed the government to help restore the warehouses of online retailers damaged by Ukrainian attacks. Since the beginning of summer, Ukraine has intensified strikes on Russian oil refineries, as well as warehouses and logistics centers of major e-commerce companies Wildberries and Ozon.
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Analyst’s assessment and the government’s position
Analyst Raivo Vare, who follows the Russian economy, believes that the decision has two consequences. In his assessment, private owners of such facilities can no longer maintain their operations exclusively according to market principles because of unavailable loans and technical difficulties.
Vare also said that the situation gives the Kremlin an opportunity to expand state control as part of a re-nationalization campaign. In his view, it had previously mainly concerned medium-sized businesses, but now includes large companies, including agricultural and extractive enterprises. The analyst linked this process to the redistribution of assets within Russia due to restrictions on businesses abroad.
Since July 18, Kyiv has attacked at least 20 warehouses of Wildberries, Russia’s largest online retailer, ERR News reported. Ozon said that four of the company’s facilities in southern Russia came under Ukrainian attacks on Monday. Russian First Deputy Prime Minister Denis Manturov said that the decree does not mean nationalization or a change of ownership, but allows the state to participate in managing companies to address specific security issues.
