Putin Issues Decree Allowing State Control of Infrastructure Affected by Drone Attacks

Russian President Vladimir Putin has issued a decree allowing the state to temporarily seize control of critical infrastructure facilities if private owners fail to protect them from Ukrainian drone attacks or to rebuild them after such strikes. The decree was announced on Monday amid increasing economic pressure and public frustration in Russia following months of escalating Ukrainian attacks on oil refineries and e-commerce hubs, which have caused nationwide disruptions. Ukraine is also experiencing ongoing aerial attacks that have severely impacted its power grid and damaged homes as the conflict continues into its fifth year. The specifics of the Kremlin's intentions regarding the decree remain unclear, but it encompasses various sectors, including energy, industrial, communications, transportation, and logistics facilities. Kremlin spokesman Dmitry Peskov stated that business owners often do not pay sufficient attention to safety measures against drone threats. He emphasized the need for measures to ensure safety due to the threat to vital economic infrastructure. Deputy Prime Minister Denis Manturov clarified that the decree does not imply nationalization or a change of ownership but rather state involvement in managing enterprises to address specific security issues. Manturov noted that the decree would not be applied broadly and that decisions would be made at the highest levels. Political analyst Abbas Gallyamov suggested that the measure may be a tactical step to compel owners of repeatedly damaged oil refineries to invest in repairs. He pointed out that repeated attacks may discourage owners from investing in restoration. Chris Weafer, CEO of Macro-Advisory Ltd., indicated that the Kremlin aims to encourage companies to enhance their security measures and reduce successful Ukrainian attacks. He noted that the ongoing war is raising costs for businesses, and the state seeks to avoid additional financial burdens. In recent attacks, Ukraine's General Staff reported strikes on the Afipsky oil refinery in the Krasnodar region, causing a fire, and damage to the Novoshakhtinsk oil refinery in the Rostov region. This marks the eighth targeting of the Afipsky refinery and the fourth of the Novoshakhtinsk refinery within a year. Russian businesses are facing significant economic challenges as the war continues, with the government increasing taxes and domestic borrowing to manage its budget deficit. The seizure of damaged assets could also impose financial burdens on the state. Additionally, Russia is providing more support to its largest online retailer, Wildberries, which has suffered from repeated strikes on its warehouses. The Finance Ministry proposed extending deadlines for tax and insurance payments to assist Wildberries and its sellers. On Saturday, Putin stated that Russia must enhance its air defense capabilities and improve coordination among defense, law enforcement, and civilian agencies. In May, Russian lawmakers approved a bill allowing the Central Bank and state-controlled Sberbank to install air defenses against drone attacks. Reports indicated that a mechanism had been established for businesses to procure protective equipment against drone threats.