The Central Bank of Russia has concluded that the state has violated the rights of minority shareholders in a number of asset seizures linked to the war against Ukraine. This marks the first notable attempt by the Russian elite to push back against the process of nationalisation.

Source: Reuters citing its sources

Details: Amid confrontation with the West, tens of billions of dollars in assets belonging to foreign investors and Russian billionaires have changed hands, mostly after being seized by the state.

Discontent is growing among parts of the elite, particularly market-oriented technocrats credited with stabilising Russia's economy under unprecedented sanctions.

Some business executives, as well as officials of the Central Bank and Ministry of Finance, question the move towards a "Soviet-style" command model, where resources are mobilised to achieve military victory in Ukraine.

Three sources close to the Central Bank and Moscow Stock Exchange (MOEX) told Reuters that MOEX has officially complained to the Central Bank about a breach of law after the government took control of a majority stake in the gold mining company UGC.

Background:

• The Russian General Prosecutor's Office has filed a lawsuit with the Chelyabinsk court to transfer various assets linked to the main owner of the company Yuzhuralzoloto, Konstantin Strukov, to state ownership.
• On 30 May, Kremlin leader Vladimir Putin signed a decree allowing companies that fail to fulfil state contracts during martial law to be placed under external management.

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