As Vladimir Putin pushes his war in Ukraine into its second year, the deepening militarization of Russia’s economy is fueling fears among the country’s business elite that the squeeze on their companies is only just beginning.
The government is already considering “one-time” taxes on some big firms to help boost revenues reduced by the tightening grip of sanctions and other restrictions and tycoons said they expect the Kremlin to step up demands for cash. Wartime laws also give the authorities sweeping powers to dictate company operations, from what is produced to how much it costs.
With public calls for tycoons who aren’t enthusiastic enough in their support of the invasion be stripped of their assets, some of Russia’s richest now worry they could see their holdings seized by rivals seen as more loyal or even nationalized, according to people familiar with their thinking. The Kremlin’s public reassurances that business interests will be respected ring hollow with the Russian president’s attention focused on the war, not business, these people said, speaking on condition of anonymity for fear of retribution.
