Putin’s Decree on Infrastructure Control
Russian President Vladimir Putin has issued a decree permitting the state to temporarily take control of essential infrastructure facilities if their private owners fail to safeguard them against Ukrainian drone attacks or do not repair the damages afterward.
This decision was announced Monday amid rising economic strain and public dissatisfaction in Russia, following months of intensified Ukrainian assaults on oil refineries and e-commerce sites that have disrupted the country significantly.
Meanwhile, Ukraine is also suffering from relentless aerial bombardments that have severely impacted its power grid just as winter approaches and have caused substantial damage to homes, with Russia’s invasion now extending into its fifth year.
The precise objectives of the Kremlin with this decree remain uncertain. It covers various sectors, including energy infrastructure, industrial sectors, communications, transportation, and logistics facilities.
Kremlin spokesman Dmitry Peskov stated on Tuesday that “often business owners do not pay enough attention to taking measures to ensure safety, anti-drone safety.”
He emphasized that due to the threats posed to crucial economic infrastructure, “we must take measures, we must ensure our own safety,” reflecting a growing urgency.
Deputy Prime Minister Denis Manturov clarified that the decree does not equate to the nationalization of companies or a shift in ownership; rather, it pertains to “involvement of the state in the management of an enterprise to resolve specific security issues.”
He noted that the decree would not be used broadly, assuring that “targeted, carefully considered decisions will be made at the highest level.”
Political analyst Abbas Gallyamov suggested that this measure might be seen as a tactical maneuver aimed at compelling owners of repeatedly struck oil refineries to undertake necessary repairs.
He pointed out that considering some refineries have been hit multiple times, it’s reasonable to suspect that owners might hesitate to invest in repairs. “Why spend billions if they’re going to get hit again tomorrow?” he questioned, hinting at frustration with the situation.
Gallyamov observed that the government seems to be issuing an ultimatum: “If you don’t finance the restoration of the refineries, we’ll take them away from you.”
In a recent string of attacks, Ukraine’s General Staff reported that its forces targeted the Afipsky oil refinery in the Krasnodar region overnight, causing a fire. Krasnodar Governor Veniamin Kondratyev confirmed that a fire indeed broke out at the facility.
Furthermore, a Ukrainian strike also impacted the Novoshakhtinsk oil refinery in the Rostov region, disrupting operations, according to Governor Yuri Slyusar, who provided no further details.
As the costly war continues, Russian businesses are grappling with significant economic hurdles. The government has responded by raising taxes and increasing domestic borrowing to manage its budget deficit, while taking control of major companies could yield some financial returns.
However, assuming control of damaged assets could also impose additional financial burdens. The Kremlin may be using this measure to push companies to take on greater responsibility for air defense, especially given the challenges of protecting such a vast territory.
In a related effort, Russia is extending more support to its largest online retailer, Wildberries, and the businesses selling goods through the platform. This company and many sellers associated with it have faced severe impacts from recurring Ukrainian strikes on their warehouses. To alleviate financial pressure, the Finance Ministry proposed extending deadlines for tax and insurance payments.
On Saturday, Putin mentioned on state television that Russia “must and will improve the air defense system and enhance its capabilities.”
He further remarked on the need to optimize coordination among defense, law enforcement, and civilian agencies at all levels, advocating for a better utilization of resources from both state-run enterprises and private businesses.
Back in May, in response to significant strikes that alarmed Moscow, Russian lawmakers endorsed a bill that enabled the Central Bank, state-controlled Sberbank, and other financial institutions to implement air defenses on their premises as a protective measure against drone attacks.
According to news outlet RBC, previous reports based on anonymous sources from the Defense Ministry indicated that a framework had been established for companies to acquire weapons and equipment for their protection against drone assaults, aligning with statements from Russian officials about the responsibilities businesses should assume.
