Latest news with #economicmodel
Arab News
10-07-2025
- Business
- Arab News
Russia seizes $50 billion in assets as economy shifts during war in Ukraine, research shows *
MOSCOW: Russian authorities have confiscated assets worth some $50 billion over the past three years, underscoring the scale of the transformation into a 'fortress Russia' economic model during the war in Ukraine, research showed on Wednesday. The conflict has been accompanied by a significant transfer of assets as many Western companies fled the Russian market, others' assets were expropriated and the assets of some major Russian businesses were seized by the state. In response to what Russia called illegal actions by the West, President Vladimir Putin signed decrees over the past three years allowing the seizure of Western assets, entangling firms ranging from Germany's Uniper to Danish brewer Carlsberg. Besides the Western assets, major domestic companies have changed hands on the basis of different legal mechanisms including the need for strategic resources, corruption claims, alleged privatization violations, or poor management. Moscow law firm NSP (Nektorov, Saveliev & Partners) said that the scale of what it called the 'nationalization' amounted to 3.9 trillion roubles over three years, and it listed the companies involved. The research was first reported by Kommersant, one of Russia's leading newspapers, which said it illustrated a 'fortress Russia' economic model. The 1991 break-up of the Soviet Union ushered in hopes that Russia could transform into a free-market economy integrated into the global economy, but vast corruption, economic turmoil and organized crime undermined confidence in democratic capitalism through the 1990s. Putin, in his first eight years in power, supported economic freedoms, targeted some so-called oligarchs and presided over a significant growth of the economy to $1.8 trillion in 2008 from $200 billion in 1999. In the 2008-2022 period, the economy grew to $2.3 trillion, though Western sanctions hit it hard after Russia annexed Crimea from Ukraine in 2014, according to figures from the International Monetary Fund. Though the Russian economy has performed better than expected during the war in Ukraine, its nominal dollar size in 2024 was just $2.2 trillion, according to IMF figures, much smaller than China, the European Union or United States. 'Fortress Russia' Russian officials say that the Ukraine war — the biggest confrontation with the West since the depths of the Cold War — has demanded extraordinary measures to prevent what they say was a clear Western attempt to sink the Russian economy. Putin says the exit of Western firms has allowed domestic producers to take their place and that the Western sanctions have forced domestic business to develop. He has called for a 'new development model' distinct from 'outdated globalization.' But the wartime economy, geared toward producing weapons and supporting a long conflict with Ukraine, has put the state — and those officials who operate it — in a much more powerful position than private Russian businesses. Russian prosecutors are now seeking to seize billionaire Konstantin Strukov's majority stake in major gold producer Uzhuralzoloto (UGC) for the state. More than a thousand companies — from McDonald's to Mercedes-Benz — have left Russia since the February 2022 start of Russia's war in Ukraine by selling, handing the keys to existing managers or simply abandoning their assets. Others had their assets seized and a sale forced through.
Yahoo
09-07-2025
- Business
- Yahoo
'Fortress Russia' has confiscated $50 billion in assets over three years, Kommersant says
MOSCOW (Reuters) -Russia has confiscated assets worth 3.9 trillion roubles, or around $50 billion at current exchange rates, over the past three years, underscoring the scale of the transformation into a "fortress Russia" economic model, the Kommersant newspaper said. Foreign companies have grappled with the risk of state seizure since Russia sent troops into Ukraine in February 2022, but Moscow, citing strategic stability and domestic security, has increasingly turned its attention to domestic assets too. The size of the asset seizures, calculated by the NSP Law Firm, shows the extent of Russia's move from a relatively open economy towards a "fortress" model, Kommersant, one of Russia's most respected newspapers, said. The law firm advised business owners to shed potential weak points which could be used as a basis to seize assets including second passports or economic ties with countries which Russia classifies as "unfriendly" - broadly the entire Western world, Kommersant said. It also suggested owners should consider entering into business with state-owned partners, Kommersant said. About 1.54 trillion roubles worth of assets have been seized under the law on strategic companies, 1.07 trillion roubles worth seized on corruption grounds, 385 billion roubles on alleged privatisation violations and 621.5 billion roubles due to claims of ineffective management, Kommersant said. The 1991 fall of the Soviet Union ushered in hopes that Russia could transform into an open free-market economy integrated into the global economy, though vast corruption, economic turmoil and crime undermined confidence in democratic capitalism in the 1990s. President Vladimir Putin in his first eight years in power supported economic freedoms, targeted some so-called oligarchs and presided over significant economic growth, seeing the economy grow to $1.8 trillion in 2008 from $200 billion in 1999. In the 2008 to 2022 period, the economy grew to $2.3 trillion, though Western sanctions hit it hard after Russia annexed Crimea in 2014, according to figures from the International Monetary Fund. Though the Russian economy has performed better than expected during the war in Ukraine, its nominal dollar size in 2024 was just $2.2 trillion, according to IMF figures. ($1 = 78.2000 roubles) Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
The Sun
07-06-2025
- Business
- The Sun
From creating the NHS to investing in people, Labour are innovators – next week we'll do it again… with £86b for hi-tech
IT has been almost a year since Labour came to power – and in that time we have made tough choices to steady our economy. This government will never forget that the decisions we make impact your family's finances. 4 4 You know what it means to work hard and make sacrifices when times are tough. And while that has not been easy, the tide is beginning to turn. Interest rates have been cut four times — a boost for everyone with a mortgage. We raised the pay of millions of working people by up to £1,400 a year by increasing the national minimum wage. In the last week, we have increased the number of children eligible for free school meals by half a million and announced £15billion to upgrade trains and buses outside London. Now is the time to invest in Britain's future, and that means doing things differently. We are building a new economic model that puts working people first. By investing in the industries of tomorrow, we will create good jobs, boost wages and put more money into people's pockets. Too often, governments get caught firefighting today's problems, neglecting the opportunities of tomorrow. But history shows us a different path. Inside robotic surgery that is revolutionising outcomes on the NHS After a post-war election victory in 1945, a Labour government created the NHS. In the 1960s, we backed science and technology in the age of the 'white heat'. In the 1990s, we invested in people and public services, transforming lives. Today, we must do the same, by backing British ideas and innovation. Next week, the Chancellor will set out our plan to renew Britain's economy by investing in your priorities: health, security and good jobs. As part of that, we are announcing an £86billion investment in the UK's fastest-growing sectors — tech, life sciences, advanced manufacturing and defence. This money will fund cutting-edge medical research to tackle hard-to-treat diseases to help keep families together for longer. It will support defence innovation to keep Britain safe in an increasingly volatile world. 'Foundations for change' And it will power advances in engineering biology that could revolutionise how we produce food, fuel, materials. These investments will more than pay for themselves and will create thousands of well-paid jobs across the country. And the decisions over where to spend the cash will not be made in Whitehall, but in the communities that will benefit, because we know every corner of Great Britain has a part to play. We want to see Liverpool leveraging its expertise in life sciences to accelerate drug discovery; Northern Ireland harnessing its reputation for cutting-edge defence equipment to shore up our national security; and South Wales making the most of its expertise in designing cutting-edge semiconductors that power the devices like mobile phones and electric cars we rely on every day. 4 4 We know the legacy of the past 14 years can't be reversed overnight. But the tough decisions we have made are laying the foundations for lasting change. Now, we are entering a new phase, focused on long-term renewal and economic strength. The principle is simple: invest through tough times to grow stronger. We see this in the business world constantly. Like the American tech company that, in the 1990s, was 90 days from bankruptcy before doubling down on innovation. That company was Apple, and today many of you are reading this on one of their products. Britain has always led the world when we bet on ourselves. Led the world James Watt's steam engine powered the Industrial Revolution. Work at Bletchley Park laid the foundations for modern computing. Tim Berners-Lee invented the worldwide web. Today, we are global leaders in life sciences and among the top three countries for AI development. These strengths are not just academic — they represent opportunity. Industries that generate billions, improve lives and offer quality jobs for the next generation. We believe Britain's best days are still ahead. That's why we are investing in our people, in innovation, in the future. The road won't always be easy, but we are building a stronger, fairer economy that works for everyone.
