top Russian Finance Official Publicly Criticizes Putin‘s Nationalization Drive,Central Bank Investigates State Asset Agency
MOSCOW – In a rare public rebuke,a top official at the Moscow Stock Exchange has openly criticized President Vladimir Putin’s policy of nationalizing private companies,as concerns grow within Russian financial circles over the legality and economic impact of the sweeping asset seizures.The criticism comes as the Bank of Russia initiates administrative proceedings against the federal agency responsible for managing state assets, Rosimushchestvo, over violations related to a recent nationalization.
Sergei Shvetsov,a member of the Moscow Stock Exchange’s management board and former first deputy governor of the central Bank,publicly questioned the government’s adherence to its own rules during a financial forum in moscow. “First of all, the state must follow the rules it has established. It doesn’t do that now, especially when it comes to public companies in which it has shares,” Shvetsov stated.
His comments reflect a growing unease among some within the Russian financial establishment regarding the accelerating pace of nationalizations, which began after the full-scale invasion of Ukraine and have intensified amidst Western sanctions and a widening budget deficit. Prosecutor General Igor Krasnov reported to Putin in mid-March that companies worth 2.4 trillion rubles were targeted for nationalization, identifying “five strategic enterprises.”
2024 has seen a record-breaking surge in state takeovers,with nearly 70 companies seized,representing combined revenues exceeding 807.6 billion rubles and assets valued at over 544.7 billion rubles,according to The Moscow Times. Notable nationalized assets include those belonging to Alexei Khotin, former owner of Jugra bank (over 100 billion rubles), the car dealership Rolf (over 68 billion rubles), and the Chelyabinsk Electrometallurgical Plant (over 61 billion rubles).
The Bank of Russia has signaled its concern that these transactions are often failing to protect the rights of minority shareholders. Reuters reports that the central bank has launched administrative proceedings against rosimushchestvo specifically over the nationalization of Yuzhuralzoloto, a gold mining company. The state acquired 67.8 percent of Yuzhuralzoloto’s shares from billionaire Konstantin Strukov without making a mandatory offer to buy out the remaining minority shareholders, a violation of established regulations.
While the long-term implications of this internal dissent remain unclear, Shvetsov’s public criticism marks the first known instance of a high-ranking financial official directly challenging Putin’s nationalization policy, raising questions about the sustainability of the current economic course and the potential for further resistance within the Russian elite.
Sources: “The Moscow Times”, Reuters, “Rzeczpospolita”
