Jens Asbjørn Bøgen
Failing to fight off Ukraine’s drones? Then we’ll take your business.
Russian President Vladimir Putin has signed a new decree setting a tough standard for private business.
Under the law, known as Decree No. 604, the state can seize control of a company’s assets if the owner fails to shield facilities from Ukrainian drones or delays repairs, according to Kyiv Post.
That puts immediate pressure on firms like Wildberries, Russia’s largest online marketplace, which has seen its warehouses burn in recent weeks.
Kremlin spokesman Dmitry Peskov defended the decree on Tuesday. “We are facing an obvious threat of drone attacks on critical infrastructure facilities,” Peskov said, adding that business owners “often do not pay enough attention” to anti-drone security. Given the threat, he said, Russia “must take measures” to ensure its security.
When a refinery or factory gets hit, the owner gets blamed for not stopping it. Never mind that defence systems failed.
Broad takeover power
The law leaves major loopholes. It never defines proper anti-drone protection, nor does it state how fast repairs must happen.
That vagueness grants officials wide power. Seizures extend far beyond damaged buildings to include company shares, real estate, and financial securities.
State agency Rosimushchestvo will normally step in, but the Kremlin can appoint anyone, including direct competitors. The decree also sets no expiration date for this temporary management.
First Deputy Prime Minister Denis Manturov tried to ease fears. “I want to stress that this is not about nationalization or a change in the form of ownership,” Manturov said, noting the state enters management “to address specific security tasks.”
Ukraine’s campaign wreaks havoc
For months, the Ukrainian drone forces have targeted Russian businesses and oil and gas infrastructure deep in Russian territory.
Initially the campaign focused on refineries and similar targets critical to Russia’s oil and gas production. Since then, Ukraine has begun targeting Russia’s biggest e-commerce giants.
The strategy is to make the Russian public feel the pinch of the war, making it increasingly difficult for the Kremlin to shield the Russian population from the war in Ukraine.
Echoes of history
Despite government assurances, executives remain uneasy. Russian history shows how temporary wartime measures tend to linger indefinitely.
The decree carries strong Soviet echoes. Moscow once stripped private business of real authority during emergencies. Putin’s order stops short of outright nationalization, but the outcome is clear. Titles stay on paper while the state takes the keys.
