This article discusses Vladimir Putin's recent privatization strategy in Russia, characterizing it as a means to reward loyalty and maintain control, especially amid the ongoing war in Ukraine. It cites the example of Danone's Russian subsidiary being transferred to a relative of Ramzan Kadyrov, illustrating how the government expropriates companies and then redistributes them to individuals close to power.
The Russian economy, though heated by the war, isn't yet critically damaged. While sanctions remain in place and Russia hasn't fully replaced European markets or businesses, potential negotiations with the US under a Trump administration raise possibilities of sanction relief.
Putin frames his privatization as a correction of the perceived injustices of the 1990s privatization, viewing it as a robbery of public assets. This serves as a justification for nationalizing companies, even those unrelated to national security. This move has unsettled the old oligarchs, some of whom have faced imprisonment, death, or exile.