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Putin passes bizarre decree allowing him to seize private Russian businesses

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IMAGO / ITAR-TASS

The new punishment goes far beyond a simple fine.

Running a business in a wartime economy comes with endless unpredictable risks. Now, a sweeping new rule from the top has left corporate owners scrambling to secure their assets. The penalty for falling short could mean losing their life’s work overnight.

A sudden decree

President Vladimir Putin recently signed a controversial order aimed at protecting national infrastructure. The move follows months of relentless Ukrainian drone strikes that have severely damaged industrial sites across Russia.

The August 24 directive puts the burden of defense squarely on the shoulders of private business owners. They now have to figure out how to stop aerial threats, and they have to pay for it out of their own pockets.

During a recent episode of the Didaskalia program hosted by Patrycjusz Wyżga, an expert analyzed the economic fallout. Iwona Wiśniewska, the chief specialist on Russia at the Center for Eastern Studies, described the order in blunt terms.

Vague and bizarre

Speaking on the show, Wiśniewska called it an “astonishing, bizarre decree which de facto states that all companies, all owners of critical infrastructure in the broad sense (…) must ensure the protection of their facilities against drone attacks”.

The real danger lies in what happens if a company fails to meet these new standards. The punishment goes far beyond a simple fine.

“They may be deprived of control over these facilities. In other words , the state, the government, at Vladimir Putin’s request, may temporarily manage this company (…) but so may any other entity designated by the government at Vladimir Putin’s request,” the expert pointed out.

According to the specialist, this gives the Kremlin incredible power to seize private assets at will.

No clear limits

The most alarming part of the document is what it leaves out. It lacks any specific timeframe or clear conditions for when the state can actually intervene.

This massive gray area means officials can interpret the rules however they please. Because the wording is so loose, even tiny local businesses could find themselves targeted by the government.

Wiśniewska gave a practical example of how small operations might be affected. She noted that minor fuel sellers could easily get caught in the crosshairs.

“Those small stations that buy fuel on the exchange and sell it there, if they do not provide sufficient information about when the petrol will be available or do not know how much it costs, may be punished,” she explained.

Sources: Didaskalia, Center for Eastern Studies (OSW)

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