Russian President Vladimir Putin has signed a decree that permits the government to temporarily assume control of critical infrastructure if private owners are unable to protect these sites from Ukrainian drone attacks or to rebuild them after strikes.
The decree, announced Monday, comes as Russia faces increasing economic and political pressure from escalating Ukrainian strikes, which have targeted vital oil facilities and commercial hubs.
Kyiv has employed domestically developed long-range drones to hit energy infrastructure, leading to fuel shortages, and other key sites, causing embarrassment for the Russian leadership. Simultaneously, Russia has continued its aerial attacks on Ukraine, impacting its power grid and damaging residential areas.
The Kremlin's specific intentions behind the decree remain unclear, but it applies to sectors including energy, fuel, industrial, communications, transport, and logistics.
Deputy Prime Minister Denis Manturov stated that the decree does not signal nationalization or a change in ownership, but rather "involvement of the state in the management of an enterprise to solve specific security problems." He emphasized that decisions will be made "at the highest level" and will be "targeted, carefully considered."
Political analyst Abbas Gallyamov suggested the measure could be a "tactical" step to compel owners of repeatedly damaged oil refineries to undertake necessary repairs. "Given the fact that the same refinery has already been hit three to five times, it’s safe to assume that the owners are now reluctant to invest in restoring what’s been destroyed," Gallyamov said. "Why spend billions if they’re going to get hit again tomorrow?"
He characterized the decree as an ultimatum to companies: "If you don’t finance the restoration of the refineries, we’ll take them away from you."
In a recent incident, Ukrainian forces reported striking facilities at Russia's Afipsky oil refinery in the Krasnodar region overnight, causing a fire. Local authorities confirmed a fire at the refinery.
The ongoing war presents fundamental economic challenges for Russia, with the government increasing taxes and borrowing to manage the budget deficit. Taking control of major companies could potentially generate revenue, but also impose financial burdens.
Authorities might also intend the measure to pressure companies into taking greater responsibility for air defense, given the difficulties in comprehensively protecting Russia's vast territory.
In related efforts, Russia has provided additional support to its online retailer Wildberries and its sellers, who have been significantly impacted by Ukrainian strikes on warehouses. The Finance Ministry proposed extending tax and insurance payment deadlines for Wildberries and its associated businesses.
President Putin stated Saturday that Russia "must and will improve the air defense system and enhance its capabilities" in response to Ukrainian strikes. He also called for streamlining coordination among defense, law enforcement, and civilian agencies and leveraging the capacities of both state-run and private enterprises.
In May, a bill was approved allowing Russia's Central Bank, state-controlled Sberbank, and other financial services to install air defenses on their premises to ward off drone attacks. Russian media also reported in May that a mechanism was established for businesses to procure weapons and equipment for self-protection against Ukrainian drone attacks.