Russia seizes 15 military factories in crackdown on defense sabotage
Russian Federation Prosecutor General Igor Krasnov announced the takeover of 15 military factories from owners accused of "destroying the country's defense capabilities". Their value is estimated at approximately 439 million dollars.
1:15 PM EDT, March 27, 2024
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In the last year and the early months of this year, the Russian General Prosecutor's Office nationalized 15 strategic military-industrial complex enterprises following court decisions. According to Krasnov, their total value surpasses 4.42 billion dollars.
Taking over privatized companies
Krasnov stated that these enterprises were "illegally privatized", with some ending up in the hands of citizens from "unfriendly" countries who allegedly engaged in a deliberate policy to undermine the country's defense capability. One of the main issues raised was the failure to modernize production facilities and the diversion of profits abroad.
Krasnov highlighted that government officials, including former governors and security agents, facilitated the privatization of these entities. He assured that the prosecutor's office is overseeing the seamless continuation of technological processes and the protection of workers' rights, underscoring the seriousness of this commitment.
"Important moment"
On March 25, Russian leader Vladimir Putin mentioned that the General Prosecutor's Office is focusing on returning several major enterprises and property complexes to state ownership.
He described this effort as an "important moment" in the prosecuteurs' work, aimed at "protecting the social and economic rights of citizens" and "safeguarding the interests of the state and society." Putin justified the nationalization of business properties in cases where they were acquired in violation of the law or used against the interests of the state.
Already nationalized 180 companies
Research by "Novaya Gazeta Europe" and Transparency International reveals that Russia has nationalized over 180 private enterprises during the two years of conflict in Ukraine. The value of these companies reaches about 13.79 billion dollars, amounting to roughly 0.6 percent of Russia's GDP. The targeted enterprises primarily include those in the military sector, as well as the machinery, food, and fishing industries, besides ports and real estate assets, often belonging to businessmen who have left the country.
