Kathrine Frich
Critics now say these actions echo Soviet-era economic control, with some referring to it bluntly as a “war tax.”
Critics now say these actions echo Soviet-era economic control, with some referring to it bluntly as a “war tax.”
Putin’s nationalization strategy
For the first time since the war began, Russia’s own financial leadership is openly questioning the Kremlin’s economic policies.
According to Reuters, the Bank of Russia has publicly criticized the state’s seizure of private assets to support the war effort.
A move previously accepted without challenge from within the elite class.
Assets worth trillions seized to fund Putin’s war
Following the invasion of Ukraine and the resulting budget shortfall,
Russian authorities began nationalizing private companies.
In March, Prosecutor General Igor Krasnov reported to Putin that five strategic enterprises had been taken over, part of a wider state grab worth 2.4 trillion rubles.
A record year for state takeovers in 2024
According to The Moscow Times, 2024 saw the largest wave of nationalizations in modern Russian history.
Nearly 70 companies were absorbed by the state, with combined revenues of over 807 billion rubles and assets exceeding 544 billion.
Many belonged to former oligarchs and major industrialists.
Finance minister calls it a “war tax”
The largest nationalized assets included those from former Yugra Bank owner Alexei Khotin, car dealership giant Rolf, and the Chelyabinsk Electrometallurgical Plant.
Critics now say these actions echo Soviet-era economic control, with some referring to it bluntly as a “war tax.”
“The state must follow its own rules,” warns Shvetsov
Sergei Shvetsov, former deputy head of the central bank and a member of the Moscow Stock Exchange board, has gone public with his concerns.
Speaking at a financial forum, he said:
“The state must, above all, adhere to the rules it establishes. Currently, it fails to do so, especially when it comes to publicly traded companies in which it holds shares.”
Central bank opens case against state asset agency
Reuters reports that the Bank of Russia has launched administrative proceedings against Rosimushchestvo, the government agency that oversees state property.
The trigger was the nationalization of the gold mining company Yuzhuralzoloto, where 67.8% of shares were taken from billionaire Konstantin Strukov, without offering compensation to minority shareholders.
“Private property rights in Russia are crumbling”
Three sources close to the central bank told Reuters that the situation with Yuzhuralzoloto exposed major legal flaws.
One insider summed up the moment:
“The last semblance of private property rights in Russia is crumbling.”
For many in the business elite, this marks a turning point in the Kremlin’s relationship with capital.
A new redistribution of wealth
Experts say this wave of nationalizations represents the largest property redistribution since the 1990s, when Soviet assets were sold off to private investors.
Now, under the pressure of war and sanctions, the pendulum has swung back, but this time, property is being taken, not bought.
This article is made and published by Kathrine Frich, which may have used AI in the preparation
