Over the past three years, the Russian government has seized assets worth about $50 billion - a huge figure that clearly reflects the economic restructuring process called the "Russian stronghold" in the midst of the Ukrainian conflict. Under the tough guise of decrees, localization and sanctions, Russia is transforming into a model of self-reliance.
According to new research published by law firm NSP (Nektorov, saveliev & Partners), the total value of officially nationlized assets in the period of 2021-2024 is up to 3.9 trillion rubles (equivalent to 50 billion USD). A series of Western assets - from German energy companies such as Uniper to Danish beer maker Carlsberg - were seized under the decree of President Vladimir Putin, in response to sanctions that the Kremlin called an "illegal act" from the West.
Not only foreign enterprises, many large domestic corporations also fell into a spiral of transferring ownership after accusations of corruption, violating equitization processes or poor management. Most recently, Russian prosecutors have begun procedures to seize shareholders of billionaire Konstantin Strukov in gold company Uzhuralzoloto.
More than 1,000 companies have left Russia since February 2022, from McDonald's, Mercedes-Benz to global technology and consumer companies. Some sold off assets, others left everything behind, while the Russian government quickly took over, even forcing them to resell to friendly investors.
According to Kommersant, one of Russia's largest economic newspapers, these moves mark a clear shaping of the "Russia stronghold" economic model - namely prioritizing internal control, self-reliance and avoiding dependence on the global supply chain, which is considered "outdated".
This shift comes as the Russian economy faces the heaviest series of sanctions since the Cold War. Since the 2014 Crimean takeover and especially the conflict in Ukraine, Russia has been cut off from many international financial and trade channels.
However, despite initial gloomy forecasts, the Russian economy in 2024 will still reach about $2,200 billion, lower than the peak of $2,300 billion in 2022, but will not collapse as the West expects.
Instead, a war-time economy has emerged, with the state budget leaning heavily on defense and industrial production to serve the conflict.
