Published: · Region: Eastern Europe · Category: geopolitics

Putin Threatens to Seize Firms After Drone Strikes Expose Russia’s Private-Sector War Vulnerability

The Kremlin has authorized the takeover of private Russian companies that fail to protect themselves from Ukrainian drone attacks, expanding the war’s reach deep into the country’s commercial backbone. The decree follows strikes on logistics giants Ozon and Wildberries, which wiped out warehouses and market value, and signals that corporate boards are now on the front line. Readers will see how a remote drone war is reshaping property rights, business risk, and Russia’s economic resilience.

Russia’s corporate sector has been pulled directly into the war with Ukraine after President Vladimir Putin signed a decree allowing the state to seize private companies that do not adequately defend themselves against drone attacks.

The new measure, reported on 25 August, targets firms in the fuel, energy, industrial, communications, transport, and logistics sectors. It follows a string of Ukrainian drone strikes deep inside Russian territory, including attacks on six warehouses belonging to e-commerce platform Ozon in four days and more than 20 sites operated by online retailer Wildberries. Those hits triggered fires, disrupted distribution, and helped drive Ozon’s stock down roughly 30%, exposing how fragile Russia’s wartime domestic logistics networks have become.

For executives, workers, and investors, the meaning is blunt: security failures can now cost them their company. Facilities that once worried mainly about cyberattacks and insurance premiums must now factor in air defense, physical hardening, and state scrutiny. If the Kremlin deems a site insufficiently protected, it has given itself the right to step in, take control and, in effect, nationalize private assets on security grounds.

On the ground, the policy will be felt most immediately in warehouses, fuel depots, ports, rail yards, telecom hubs and energy infrastructure that have become recurring targets for Ukrainian drones. Managers face the dilemma of spending heavily on defenses that may still be inadequate against small, cheap unmanned systems, or risking the accusation that they have not done enough. Employees work under the double pressure of operating in facilities that are both militarized targets and de facto tests of their employer’s loyalty and competence.

Strategically, the decree formalizes a shift that has been underway since the invasion began: the blurring of lines between Russia’s military and private economic spheres. By making corporate resilience against foreign attacks a criterion for continued ownership, the Kremlin is tightening its grip on sectors it already considers strategic. That may improve coordination of air defenses and emergency response. It also deepens the politicization of property rights in an economy where large businesses already depend heavily on state tolerance.

For Ukraine and its backers, the move is an acknowledgement that long-range drone strikes are inflicting damage well beyond symbolic hits. By forcing Moscow to threaten seizures of underprotected assets, Kyiv’s campaign is not just burning warehouses; it is helping to push Russia toward a more command-style war economy that is likely to be less efficient, more corrupt, and more brittle over time.

Internationally, the decree complicates the risk calculus for any remaining foreign investors or partners with exposure to Russian infrastructure, even indirectly. Insurance pricing for Russian assets was already high due to sanctions and war-related hazards; the prospect that a partner facility could be confiscated for alleged security lapses adds another layer of uncertainty. It also sets a precedent other authoritarian states could study: using external threats to justify deeper control over nominally private sectors.

The broader pattern is clear: as drones and precision weapons bring the war home to Russian territory, the state is answering not only with air defenses but with legal tools that pull businesses into the defense perimeter whether they want to be there or not. The risk is no longer theoretical—the financial pain at firms like Ozon has been public and sharp.

Key indicators to watch now include which companies, if any, are publicly censured or taken over under the new rules; how quickly major logistics and energy firms announce new security investments; and whether drone strikes shift toward even more sensitive targets such as refineries, rail chokepoints, or telecom backbones. Together, these signals will show whether this decree remains a warning shot or marks the start of a broader wave of wartime asset consolidation by the Russian state.

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