Putin orders protection of logistics and fuel-energy sector from drones, enables state control if owners fail

Russian leader Vladimir Putin signed a decree on 24 August under which critical infrastructure facilities whose owners fail to ensure their security may be placed under temporary state management by government decision.

Source: Kremlin-aligned Russian news agency Interfax

Details: Under the decree titled On Measures to Ensure the Security of Critical Infrastructure Facilities of the Russian Federation, the measures may be introduced if attempts to prevent drone attacks are deemed ineffective or if a business fails to restore critical infrastructure facilities to operational status in a timely manner.

Critical infrastructure facilities are defined as those in the fuel and energy sector, industrial facilities, communications, utilities, transport and logistics infrastructure (including transport and logistics complexes), energy facilities (including nuclear facilities), facilities providing essential services, critically important and potentially hazardous facilities, "and other facilities deemed essential to Russia's security, economic stability and the livelihoods of its population".

According to the document, the decree has been signed "due to the increased threats to the security of critical infrastructure facilities during the special military operation" [as Russia refers to its war against Ukraine – ed.].

Temporary management can be imposed on all or part of a business entity's movable or immovable property located in Russia. The entity may be a Russian legal entity or individual, or a foreign organisation or citizen. The measure can also apply to securities, shares in the capital of legal entities and property rights belonging to the entity.

By default, the Federal Agency for State Property Management will act as the temporary manager, although the government may, on the instruction of the Russian leader, assign these functions to another entity.

The costs of temporary management will be financed from the income generated by the use of the property.

Background:

• Ukraine has been relentlessly launching long-range strikes on Russian fuel and energy facilities, industrial companies, and logistics and warehouse infrastructure involved in the war against Ukraine.
• On 19 August, Putin acknowledged that Ukrainian strikes on industrial and logistics facilities are causing damage to the Russian economy, while continuing to claim that they have no critical consequences.

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