Russia Seizes $50 Billion in Assets Since Ukraine Invasion

Since the full-scale invasion of Ukraine in 2022, Russia has confiscated private assets valued at approximately $50 billion, marking a significant shift toward a 'fortress Russia' economic model. These seizures, documented by the Moscow-based law firm Nektorov, Saveliev & Partners (NSP), span a wide array of industries but are concentrated in strategic sectors vital to Russia's war effort. The Kremlin uses these nationalizations to both generate revenue and reshape the business elite to ensure their loyalty to the regime, with seizures justified under laws concerning strategic enterprises, corruption claims, privatization violations, and ineffective management. The Russian government has also abolished the statute of limitations for privatization deals, enabling retroactive reviews and reversals of transactions dating back to the 1990s. Foreign firms face heightened risks as Russia employs presidential decrees to transfer ownership to the state, circumventing international investment protections. This economic transformation reflects a departure from the post-Soviet hopes for a free-market economy toward increased state control amid ongoing conflict and Western sanctions.