Kremlin seized 180 companies worth US$11.5bn since February 2022 – UK Defence Intelligence

UK Defence Intelligence has revealed how Russian authorities are seizing assets in favour of Kremlin-connected businessmen who support the war against Ukraine.

Source: UK Defence Intelligence review dated 5 April on Twitter (X), as reported by European Pravda

Details: The intelligence noted that since the large-scale invasion of Ukraine in February 2022, the Russian Federation has taken under state control about 180 companies worth about US$11.5 billion.

Quote: "Foreign-owned companies have almost certainly been prioritised, including companies owned by Russians who live abroad,"  the review said.

The analysts explain the actual seizure of companies by stating that the Kremlin wishes to reduce foreign, particularly Western, ties in the Russian economy.

At the same time, the intelligence states that Moscow gains more control over companies in "strategic" industries such as defence.

"This de-privatisation is likely linked to Russian President Vladimir Putin’s call in his State of the Nation address in February 2024 for a new nationalist elite forged by the war in Ukraine," they point out.

The UK Defence Intelligence analysts added that the increase in defence spending almost immediately increased financial pressure on the Russian Federation's budget, along with economic sanctions and capital outflows from the start of the large-scale invasion.

Background:

• Previously, UK intelligence said that Russia increased the number of attacks on the Novopavlivka front, but to no avail.
• Earlier, UK analysts reported on Russia's unsuccessful attempts to disguise its military facilities to prevent Ukraine from destroying them.
• Before that, they analysed how sanctions disrupted the supply of key components for the Russian defence industry.
• The UK MoD also said that Russia was trying to protect its facilities in the port of Novorossiysk from attacks by Ukraine.

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