Putin Signs Decree: Kremlin Can Take Control of Any Company in Russia

A presidential decree has come into force in Russia allowing the government to introduce temporary state administration in virtually any company, organization or entity deemed by the authorities to be important for the country's functioning and for supplying the population. This is stated in the text of the document.

Under the decree, if a company fails to take "adequate measures" to protect critical infrastructure facilities in Russia, the government — acting on a presidential order — is granted the right to temporarily take over management of the entire enterprise, including all movable and immovable property on Russian territory, as well as securities and stakes in the capital of Russian legal entities. The only restriction placed on the appointed administrator is that they cannot change property owners. The functions of the temporary administration will be carried out by the Federal Agency for State Property Management.

Powers of the Temporary Administrator

The state-appointed administrator receives the rights of an owner over the company's movable and immovable property, securities, capital stakes and property rights — with the exception of real estate transactions. The administrator is also authorized to conduct an inventory of assets and ensure their preservation, with the related costs covered from the managed company's own revenues.

The list of facilities covered by the decree is extremely broad: it includes the fuel and energy sector, including nuclear power plants, industrial enterprises, communications facilities, transport and logistics infrastructure, as well as any other facilities "of major importance for ensuring the security and economic stability" of the country and its citizens. In practice, almost any large enterprise could fall under the definition of critical infrastructure — from energy and roads to companies providing basic services to the population. Only a presidential decision can lift the temporary administration.

What's Behind the New Decree

Experts suggest the document could be used as a tool for the effective nationalization of businesses. But there is also a more specific theory about its purpose: the decree may be aimed at marketplaces Wildberries and Ozon, whose warehouses have regularly come under Ukrainian strikes — authorities reportedly believe the companies failed to provide adequate protection for their facilities.

At the same time, Wildberries is demanding government funding to restore damaged warehouses, even though protecting large storage complexes deep in the rear from such attacks would be costly and still wouldn't guarantee full safety. According to Interfax, Russia's Ministry of Finance has proposed supporting companies whose losses exceed five percent of annual revenue — in particular, by extending tax payment deadlines for affected businesses so they can resume operations. It's also possible that the authorities intend to use the new mechanism to help replenish the state budget.

Read also: Extension of temporary protection in Czechia for Ukrainians

Source: novinky.cz