Moscow-based law firm Nektorov, Saveliev & Partners has tracked 102 seizure cases since 2022, with confiscated assets now valued at 3.9 trillion rubles ($49.5 billion). Around 1.5 trillion rubles of that total came from “strategically important” firms, but many more cases have involved ordinary businesses and industries ranging from chemicals and agriculture to retail and IT.

Authorities have invoked a wide range of justifications for the seizures—including corruption, improper privatization, extremism, and “defending the public interest.” The result, critics say, is a legal system tilted in the state’s favor, with courts often ignoring protections like statutes of limitations or property rights.

Economic Impact: Short-Term Gains, Long-Term Damage

The Kremlin has reaped significant short-term budgetary benefits. The Prosecutor General’s Office raised 132 billion rubles from confiscated property sales in 2024—far exceeding the state’s target of just 1 billion. Finance Minister Anton Siluanov has pledged to maintain this pace through 2025, with major assets like the Rolf car dealership and the Domodedovo airport among those taken.

But analysts warn of deeper harm to economic resilience. “Replacing private-sector owners with those who owe their success to the state will inevitably reduce overall efficiency,” said economist Andrei Yakovlev of Harvard’s Davis Center. He added that the practice reshapes Russia’s business elite in ways that bind them to regime survival rather than productivity.

The private sector, once key to weathering sanctions and wartime shocks, is now under severe pressure. Falling oil prices and a stronger ruble have further strained Russia’s National Wellbeing Fund, prompting the state to look inward for fresh revenue.

Legal ‘Steamroller’ Targets Business Class

Business owners have described the process as a “steamroller.” Courts reject evidence and favor plaintiffs with ease, according to attorneys tracking the trend. Even high-profile entrepreneurs are vulnerable—such as Konstantin Strukov, whose family-owned gold mining firm Yuzhuralzoloto was seized on charges of improper dual roles in business and public office.

Others, like Lev Kantor—a construction executive—have fled the country fearing arrest over tax claims. “Before the war, you could still fight back. Now the state squeezes every last drop,” Kantor said.

A court in June also ordered the nationalization of a Russian game developer after its co-founder was declared an “extremist” due to support for Ukraine. Such cases have deepened fears among investors and highlighted the risks for firms tied to former opposition figures or western contacts.