Putin signs decree allowing state seizure of businesses hit by drone strikes

Key Points:

• Russian President Vladimir Putin signed a decree allowing the government to impose temporary state management on private businesses deemed to have failed in protecting themselves from Ukrainian drone attacks, without requiring a court decision.
• The decree targets critical sectors including fuel, energy (including nuclear), communications, utilities, transport, and other infrastructure vital to Russia's security and economic stability, but does not specify who decides compliance or the criteria used.
• Legal experts warn the decree could be exploited as a tool for asset seizure under the guise of security failures, potentially leading to forced sales and loss of company control, with concerns it may be used in internal corporate disputes.
• The decree follows a surge in Ukrainian drone attacks on Russian economic infrastructure, with significantly increased strikes on refineries, warehouses, and logistics facilities in 2026, amid ongoing conflict and fuel shortages.
• Russian officials have assured that the decree will be applied selectively and is not intended as mass nationalization, emphasizing that state intervention will occur only when business owners fail to prioritize security measures.