Experts note that nationalization in Russia has been underway for a decade, encompassing nearly all sectors of the economy. In recent years, the process has intensified, particularly regarding defense industry enterprises. By 2022-2024, the legal base allows the state to nationalize virtually any business.
The process usually involves the prosecutor’s office and results in assets being transferred to a small circle of influential families. Occasionally, some assets are sold off, but experts stress this has little impact on the state budget. Instead, it concentrates power and wealth among a select few.
Russia’s government faces acute budgetary challenges and is considering two main responses: budget cuts to keep inflation low or increasing inflation to balance the budget.
There are also attempts to secure external funding—via negotiations with China and potential labor migration from India. However, as specialists point out, Russia currently does not need large loans, but urgently requires investment, technology, and skilled workers. Claims about a million Indian workers coming to Russia are unconfirmed and remain hypothetical.
In summary, modern Russia’s nationalization is a tool for redistributing assets among powerful families, with little effect on national finances. The real economic problems are a shortage of skilled labor and lagging technology.
