Putin Wants Russian CEOs to Pay for Air Defense They Don't Control

In Russia's wartime economy, corporate CEOs are now forced to fund their own air defense systems against Ukrainian drones, despite lacking control over those very systems. Lukoil, a major Russian oil company, is seeking specialists for drone defense protection, with salaries reaching 290,000 rubles ($3,400) monthly. The Kremlin's recent Federal Law 58-FZ mandates that private security firms contracted by Russian businesses receive weapons from Russia's National Guard to combat unmanned systems.

However, Putin has added an incentive scheme that grants the state the power to temporarily seize control of private businesses if they fail to adequately protect their facilities from drone attacks. This temporary management includes all or part of a company's Russian property, securities, corporate stakes, and property rights, with the state-appointed manager retaining almost total control.

Russian companies are expected to spend significant sums on counter-drone capabilities, but they can only retain control over passive measures like reinforcing buildings and anti-drone netting. Active air defense measures, such as radar systems and electronic warfare equipment, must be integrated into the Defense Ministry's architecture.

This arrangement benefits Putin, as Russian businesses contribute to the national air defense networks with their profits. However, it leaves CEOs in a precarious position, as failure to meet security requirements can result in the state seizing their assets. So far, no company has been seized under Decree 604, but state warnings have been issued to several companies for perceived shortcomings in their security.

Meanwhile, Ukraine's Defense Ministry claims that its deep-strike weapons have expanded their reach to almost 1,100 miles, highlighting the growing threat faced by Russian companies.