In 2025, Russian courts made decisions to nationalize 33 private assets, responding to the growing budget deficit estimated in trillions of rubles. The state is increasing control over businesses, trying to plug financial gaps by seizing property from entrepreneurs.
This is reported by Finway
Main Reasons and Scope of Nationalization
According to reports, 24 assets with a total value of $11.03 billion were nationalized within court cases where owners were accused of causing damage to the state. Among the largest seized companies were those belonging to the “crab king” Oleg Kan, with a total value of $4.3 billion, as well as a stake in “Yuzhuralzoloto” owned by billionaire Konstantin Strukov (valued at $2 billion).
Furthermore, analysts point to nine cases where assets were nationalized without any compensation for the damages caused to the state. The government gained control over the IT company “Lesta” (developer of the game “World of Tanks,” valued at $1.7 billion), warehouse assets of DC Raven Russi ($919.2 million), and the grain company “Rodnye Polya” ($867.38 million).
Overall, nationalization in 2025 covered about 36% of the entire mergers and acquisitions market in Russia, significantly impacting the ownership structure in the country.
The state is accelerating asset seizures due to budget issues: sanctions and economic slowdown have led to a shortfall in treasury revenues, – the publication states.
Key Grounds for Asset Seizures
Lawyers highlight three main reasons why courts decide to transfer private assets to state ownership:
- corruption crimes, as in the case of “Yuzhuralzoloto”;
- violations of Federal Law No. 57 concerning foreign investments in strategic companies (e.g., Domodedovo Airport);
- accusations of extremism against the owners (the company “Lesta”).
Decline of Russian Business and Industry
- In Russia’s IT sector, wage growth has stalled: inflation exceeds wage increases, and competition for jobs has intensified — there are over 18 resumes for each vacancy.
- The metallurgy sector is facing a crisis: steel production has decreased, while imports of rolled metal from China and Kazakhstan are rising. The “Russian Steel” Association is urging the authorities to lower the excise tax on liquid steel and introduce a tariff surcharge on imports.
- The number of new companies in Russia has reached a 14-year low. The reasons include increased taxes, rising insurance contributions, a decline in the consumer sector, and strict fiscal policy. The situation is particularly difficult in construction, retail, and the service sector.
- The country’s industry is on the brink of its deepest crisis due to Western sanctions, rising credit costs, and a general economic slowdown. Key sectors, including metallurgy, chemical industry, and machine engineering, are showing significant declines in production.