The kremlin Is Hogging Private Businesses and Directing Them to the Needs of the War

Recently, the kremlin has nationalized the country’s largest plant for the production of catalysts and adsorbents used in the military-industrial complex, “salavatsky catalyst plant” LLC.

The nationalization of the plant was another step in strengthening state control over enterprises of strategic military-industrial importance. It is also an example of the use of the law enforcement system for repressive redistribution of property.

In the same month, russia took away the “glavprodukt” company, the largest producer of canned food, from an American investor. The aim was to organize food supplies in the interests of “rosgvardia” and the ministry of defence of the rf.

Prior to that, within just one week, the country’s largest grain trader, “rodnye polya”, the largest warehouse operator, raven russia, as well as airport “domodedovo” – the second busiest in moscow, were hogged from private businesses.

Last year, at least 67 companies were nationalized in russia with total revenues of more than 807.6 billion rubles and assets worth more than 544.7 billion rubles. In 2023, the total value of the assets of nationalized enterprises was about 483.5 billion rubles, in 2022 – 280.5 billion rubles.

Besides, the kremlin is pressuring businesses to sell civilian production facilities to the military.

Faberlic has sold its garment factory to “voyentekstilprom”, a company affiliated with the russian state-owned “voyentorg”. The company’s annual capacity was approximately 750 thousand garments.

At the end of last year, Gloria Jeans sold four garment factories in Rostov region to “bulava”, a company that is part of the “kalashnikov” concern and specializes in the production of military clothing.

The Foreign Intelligence Service of Ukraine is convinced that in the short term, russia will continue to buy out or redistribute civilian assets in favor of the military-industrial complex, in particular garment and machine-building enterprises. The kremlin indirectly encourages or coordinates such business transactions under the guise of “strategic goals”.