Russian President Vladimir Putin signed a decree allowing the government to temporarily take control of critical infrastructure if private owners fail to protect it from or rebuild it after strikes, apparently the latest indication that Moscow is feeling the strain of war.
Russia is facing economic and political pressure due to months of escalating, deep and increasingly accurate Ukrainian strikes. Kyiv has used domestically developed to target vital oil facilities, triggering that Putin publicly admitted, and , embarrassing the Russian leadership.
Ukraine has also reeled from relentless Russian aerial attacks that have smashed its power grid ahead of winter and heavily damaged homes, as stretches into its fifth year.
The decree may pressure owners to undertake repairs
The Kremlin鈥檚 intentions with Putin鈥檚 decree, announced late Monday, are unclear. However, it applies to various sectors, including energy and fuel infrastructure, industrial, communications, transport and logistics facilities.
Kremlin spokesman Dmitry Peskov said Tuesday that 鈥渙ften business owners do not pay enough attention to taking measures to ensure safety, anti-drone safety.鈥�
Given the drone threat against vital economic infrastructure, 鈥渨e must take measures, we must ensure our own safety,鈥� Peskov said.
Deputy Prime Minister Denis Manturov said in a statement Monday evening that the decree doesn鈥檛 imply nationalization of companies or a change of ownership 鈥� only 鈥渋nvolvement of the state in the management of an enterprise to solve specific security problems.鈥�
He added that 鈥渢his mechanism doesn鈥檛 imply widespread use 鈥� targeted, carefully considered decisions will be made at the highest level.鈥�
Russian political analyst Abbas Gallyamov said the measure might be a 鈥渢actical鈥� step designed to make the owners of repeatedly damaged oil refineries undertake repairs that they might otherwise shy away from.
鈥淕iven the fact that the same refinery has already been hit three to five times, it鈥檚 safe to assume that the owners are now reluctant to invest in restoring what鈥檚 been destroyed,鈥� he said on the Telegram messaging app.
鈥淲hy spend billions if they鈥檙e going to get hit again tomorrow?鈥� asked Gallyamov, who once worked as a speechwriter for Putin.
The government is giving companies an ultimatum, he said: 鈥淚f you don鈥檛 finance the restoration of the refineries, we鈥檒l take them away from you.鈥�
Russia suffers major economic challenges due to Ukrainian strikes
In the latest attacks, Ukraine鈥檚 General Staff said Tuesday its forces struck facilities at Russia鈥檚 Afipsky oil refinery in the Krasnodar region overnight, causing a fire. Krasnodar Gov. Veniamin Kondratyev said a fire broke out at an oil refinery in the town of Afipsky.
A Ukrainian attack also damaged the Novoshakhtinsk oil refinery in southern Russia鈥檚 Rostov region overnight and halted operations, Rostov Gov. Yuri Slyusar said Tuesday. He didn鈥檛 provide any other details.
Russia faces fundamental as the costly war drags on. The government has raised taxes and increased domestic borrowing to keep Russia鈥檚 budget deficit under control, and taking over major companies could potentially bring it windfall revenue.
At the same time, taking over damaged assets could bring another financial burden for authorities. The Kremlin may intend the measure as a way to pressure companies to shoulder more responsibility for air defense, as Russia鈥檚 vast territory is hard to protect comprehensively.
Russia has also introduced more help for its biggest online retailer, Wildberries, and businesses selling goods through it 鈥� the company and thousands of sellers working with it were hit hard by Ukrainian strikes on warehouses. The Finance Ministry proposed Monday extending deadlines for tax and insurance payments to give Wildberries and its sellers some financial breathing space.
On Saturday, Putin told Russian state television that in the wake of Ukrainian strikes deep inside Russia, Moscow 鈥渕ust and will improve the air defense system and enhance its capabilities.鈥�
鈥淲e need to streamline coordination between defense, law enforcement and civilian agencies at all levels, and to leverage the capabilities of state鈥憆un enterprises and private businesses,鈥� Putin said.
In May, with Ukraine鈥檚 deep strikes , Russian lawmakers approved a bill that allowed the country鈥檚 Central Bank, state-controlled Sberbank and some other financial services to fend off drone attacks by installing air defenses on their premises.
Russian news outlet RBC reported in May, citing anonymous sources in and close to the Defense Ministry, that a mechanism had been established for businesses to procure weapons and equipment to protect themselves from Ukrainian drone attacks, something Russian officials and lawmakers have said companies should do.
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