Russia Expands State Control Over Companies That Fail to Shield Infrastructure From Drones
Russian authorities have gained the power to seize a company's property and shares if it fails to protect key infrastructure from drone attacks, a rule that applies even to firms under foreign control.
Russia has introduced a mechanism allowing the state to take control of a private company's assets and shares when that company fails to adequately protect critical infrastructure from drone strikes. Notably, this rule applies even to businesses controlled by foreign owners, meaning foreign ownership no longer shields a company from this form of state intervention.
The move signals that Russian authorities are using the growing threat of drone attacks as justification to expand state influence over the economy. Companies responsible for critical infrastructure — such as energy, industrial or logistics facilities — are now being held accountable for whether they can effectively prevent or mitigate damage caused by drones. If such protection is not provided, the state can step in and take over the company's property and shareholdings.
This step fits into a broader pattern of Russia tightening control over strategically important sectors amid the ongoing war. Drone attacks on Russian territory have become more frequent recently, putting pressure on companies to strengthen their defensive capabilities. At the same time, the new rule gives the state an additional tool to expand its footprint across the economy under the pretext of infrastructure security.
The fact that the rule also covers foreign-controlled companies suggests Russian authorities are not distinguishing between domestic and international owners when it comes to infrastructure protection obligations. This could create additional risks for foreign investors who still hold stakes in Russian companies, and may be viewed as another instrument for consolidating state control over the economy during wartime.
