Russian President Vladimir Putin has enacted a decree authorising the government to temporarily assume control of critical infrastructure if private owners fail to adequately protect it from Ukrainian drone attacks or neglect to restore it following such incidents. Russia is currently experiencing substantial economic and political challenges due to the ongoing escalation of precise Ukrainian strikes over the past several months.
The Ukrainian military has effectively employed domestically developed long-range drones to target vital oil facilities, resulting in fuel shortages and significant disruptions to major commercial centres, which has caused embarrassment for Russian leadership. Concurrently, Ukraine has faced continuous aerial assaults from Russia, leading to extensive damage to its power grid in advance of the winter season and severely impacting residential areas, as the conflict enters its fifth year.
The intentions behind Putin’s decree remain unclear. It affects sectors like energy, industry, communications, and logistics. Deputy Prime Minister Denis Manturov clarified that the decree does not entail nationalisation or changes in ownership but involves state management to address security concerns. He noted that this approach will be used selectively.
Political analyst Abbas Gallyamov suggested that the measure could encourage owners of repeatedly damaged oil refineries to invest in repairs. He pointed out that owners might be reluctant to spend on restoration if they anticipate further damage. Gallyamov described the government’s ultimatum: “If you don’t finance the restoration of the refineries, we’ll take them away from you.”
Ukraine’s General Staff reported that its forces struck the Afipsky oil refinery in Russia’s Krasnodar region, causing a fire. Governor Veniamin Kondratyev confirmed the incident. As the costly war drags on, Russia is facing significant economic challenges, prompting the government to raise taxes and increase domestic borrowing to manage its budget deficit.
The Kremlin may encourage companies to take more responsibility for air defence, given the difficulty of protecting Russia’s vast territory. Additionally, support has been introduced for Wildberries, the country’s largest online retailer, which has been affected by Ukrainian strikes. The Finance Ministry proposed extending tax payment deadlines to help Wildberries and its sellers.
On Saturday, Putin stated that Moscow “must and will improve the air defence system.” In May, lawmakers allowed the Central Bank and Sberbank to install air defences on their premises to protect against drone attacks. Reports indicate a mechanism is in place for businesses to procure their own defences against such threats.
This article used information from The Associated Press.
