The Russian president Vladimir Putin signed a decree on the temporary transfer of Russian subsidiaries of Ariston And Bosch Russian style Gazprom Domestic Systemsthe company of the state-owned Gazprom group that produces
home appliances. This was reported by the Interfax agency. The decree, posted on the official portal for legal information, concerns Ariston Thermo Rus LLC, controlled by Ariston Holding, and BSH Household Appliances LLC, controlled by BSH Hausgerate GmbH. The reasons are not known.
Kremlin interventionism
The Kremlin’s interventionism in the Russian economy therefore continues. From February 2022 to today, over 180 companies have come under the direct control of the Kremlin: many Western brands, but those who were also affected were oligarchs who were too little “patriotic”. It is well established that Russia does not fall within the category of democratic nations, but the regime is also stepping up to finance the war economy and push military operations in Ukraine. The last presidential elections, in this sense, seemed more like a coronation than a free exercise by citizens: Vladimir Putin won, or rather won by a landslide with over 80% of the votes.
A new “elite” of pro-Kremlin entrepreneurs
Once dominated by a few oligarchs, the Russian economy is undergoing a slow but inexorable process of transition towards a state economy. This is stated, among others, by a report from the British Ministry of Defence, according to which from February 2022 to today, i.e. since the beginning of the large-scale invasion of Ukraine, the Russian Federation has nationalized over 180 companies. Many, it is true, Western, but others linked to Russian oligarchs living abroad or, if in Russia, who have become inconvenient in Putin’s eyes. This also explains the recent confiscation and re-nationalization by the authorities of Kuban Vino, the largest wine producer in the country. At the same time, Putin is creating a new “elite” of pro-Kremlin entrepreneurs by distributing nationalized companies to them, while increasing financial pressure on Moscow due to increased military spending.
Reduce external ties
The London experts add that the operation would be linked to the state’s desire to reduce external (especially Western) ties in the Russian economy. This nationalization is likely linked to a call made by Putin in a February 2024 speech for Russians to create a new nationalist elite forged by conflict. «The increase in military spending has almost certainly increased financial pressure on the Russian state, together with economic sanctions and capital outflows from Russia since the beginning of the war – reads the report -. The Russian state is likely to increase its control over companies in ‘strategic’ sectors such as defense.” Here we are, the impact on Ariston too.
