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Kommersant reports that 'Fortress Russia has confiscated 50 billion dollars in assets over the past three years'

The Kommersant newspaper reported that Russia confiscated assets valued at 3.9 trillion Russian roubles (or around $50 billion based on current exchange rates) over the last three years. This highlights the extent of the transformation to a "fortress Russia' economic model.

Since Russia's troops entered Ukraine in February 20, 2022, foreign companies have faced the threat of state seizing their assets. However, Moscow has been increasingly focused on domestic assets, citing domestic security and strategic stability.

Kommersant, a respected newspaper in Russia, stated that the size of asset seizures calculated by NSP Law Firm shows how Russia has moved from a relatively "open" economy to a fortress model.

Kommersant reported that the law firm advised clients to eliminate any weak points in their business, such as second passports and economic ties to countries Russia considers "unfriendly", which is to say, all of Western Europe.

Kommersant also said that owners should consider doing business with partners who are state-owned.

Kommersant reported that assets worth 1.54 trillion rubles were seized in accordance with the law on strategic corporations. Another 1.07 trillion roubles was seized due to allegations of corruption, 385 billion on suspected privatisation violations, and 621,5 billion roubles for claims of poor management.

In the 1990s, the fall of the Soviet Union in 1991 sparked hopes that Russia would become a free-market economy. However, widespread corruption, economic turmoil, and crime undermined the confidence in democratic capitalism. In his first eight-year tenure, President Vladimir Putin supported economic freedoms and targeted some oligarchs. He also presided over significant growth in the economy, which grew to $1.8 trillion by 2008, from $200 billion.

According to the International Monetary Fund, between 2008 and 2022, the economy reached $2.3 trillion. However, Western sanctions were a major factor after Russia annexed Crimea in 2014.

According to IMF data, the nominal dollar value of the Russian economy in 2024 is only $2.2 trillion.

(source: Reuters)