Russia Tells Companies to Defend Against Drones Themselves... Pressures Businesses Over Costs

As Ukrainian drone attacks targeting commercial facilities continue to surge, Russian authorities, overwhelmed by the burden of air defense, have begun pressuring businesses to build their own defense systems, the Financial Times (FT) reported on the 28th (local time).

Late last month, Russian President Vladimir Putin signed a bill allowing temporary management of critical social infrastructure that fails to establish its own drone protection networks.

Three days after President Putin signed the bill, the Russian government established a committee to oversee it.

A former Russian presidential office official said that intelligence agencies and the military complained that "companies are sitting on their hands regarding drone defense and refuse to do anything," adding that President Putin agreed, and the message is "wake up and start investing."

Vyacheslav Plaksin, a Russian drone defense expert, noted that inquiries from companies increased nearly fivefold overnight after the bill was announced.

The FT analyzed that President Putin's latest measure puts an end to a long-standing debate between the government and businesses over who should shoulder the defense costs of civilian facilities during wartime.

It explained that this measure is also amplifying concerns that it could be used as another means for the nationalization of businesses.

Since the war in Ukraine began, the Russian government has frequently placed several Western companies operating in the country under state control, effectively seizing and selling them off at dirt-cheap prices.

In March as well, Nestle's local subsidiary, Nestle Russia, and French supermarket chain Auchan were placed under temporary management and effectively nationalized.

President Putin stated through this bill that he "has absolutely no intention of taking anything away," but businesses appear skeptical.

A former executive at Russia's state-owned oil company Rosneft predicted regarding the new decree that "without a doubt, at some point, it will be used to snatch up assets."

At the same time, the former executive described it as essentially a tax, stating, "Right now, however, it is a way to force companies to pay."

The FT pointed out that the decree lacks clear regulations on what measures must be taken to protect against Ukrainian drone attacks, and it is difficult for companies to obtain approval for drone defense systems.

The ambiguity surrounding which companies are subject to the law is further fueling confusion.

Drone expert Plaksin said that in one industrial sector, officials discussed prioritizing 24,000 out of 700,000 workplaces, and explained that the government will keep the priority list confidential.

Because of this, companies are asking for confirmation on whether they will be subject to self-defense against drones.

A source familiar with the situation reported that shopping mall operators were told, "At this stage, the likelihood of being included [as a target for independent drone defense] is small, and you can decide for yourselves."

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