Putin issues decree opening door to state control of key sites

[AP Photo]

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 Ukrainian drone attacks 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 long-range drones to target vital oil facilities, triggering fuel shortages that Putin publicly admitted, and major commercial hubs, 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 Russia’s invasion stretches into its fifth year.

The decree may pressure owners to undertake repairs

The Kremlin’s intentions with Putin’s 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 yesterday that “often business owners do not pay enough attention to taking measures to ensure safety, anti-drone safety.”

Given the drone threat against vital economic infrastructure, “we must take measures, we must ensure our own safety,” Peskov said.

Deputy Prime Minister Denis Manturov said in a statement Monday evening that the decree doesn’t imply nationalization of companies or a change of ownership — only “involvement of the state in the management of an enterprise to solve specific security problems.”

He added that “this mechanism doesn’t imply widespread use — targeted, carefully considered decisions will be made at the highest level.”

Russian political analyst Abbas Gallyamov said the measure might be a “tactical” step designed to make the owners of repeatedly damaged oil refineries undertake repairs that they might otherwise shy away from.

“Given the fact that the same refinery has already been hit three to five times, it’s safe to assume that the owners are now reluctant to invest in restoring what’s been destroyed,” he said on the Telegram messaging app.

“Why spend billions if they’re going to get hit again tomorrow?” asked Gallyamov, who once worked as a speechwriter for Putin.

The government is giving companies an ultimatum, he said: “If you don’t finance the restoration of the refineries, we’ll take them away from you.”

Russia suffers major economic challenges due to Ukrainian strikes

In the latest attacks, Ukraine’s General Staff said yesterday its forces struck facilities at Russia’s 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’s Rostov region overnight and halted operations, Rostov Gov. Yuri Slyusar said. He didn’t provide any other details.

Russia faces fundamental economic challenges as the costly war drags on. The government has raised taxes and increased domestic borrowing to keep Russia’s 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’s 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 — 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 “must and will improve the air defense system and enhance its capabilities.”

“We need to streamline coordination between defense, law enforcement and civilian agencies at all levels, and to leverage the capabilities of state‑run enterprises and private businesses,” Putin said.

In May, with Ukraine’s deep strikes unsettling Moscow, Russian lawmakers approved a bill that allowed the country’s 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. MDT/AP