What was yours is now ours: how nationalized companies are doing

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What was yours is now ours: how nationalized companies are doing

Last week, Putin transferred Tarkett’s Russian assets into temporary management. Tarkett is a French global leader in flooring. The new manager is Center Capital, a company registered in February with authorized capital of 10,000 rubles. Its owner served in Akhmat and worked as an official; he explained receiving the assets as the “will of the president.”

The Russian state has already confiscated assets worth nearly 4 trillion rubles. What has become of them?

🔸Vkusno — i Tochka increased its revenue, but profit fell by 15%, and almost all of it went to dividends.

🔸Baltika returned to profit, but production fell by 16%, while beer became more expensive.

🔸Rodnye Polya’s revenue collapsed from nearly 300 billion to 2.3 billion rubles over two years, after which the company was sold for next to nothing.

We examine, how nationalized companies are living under their new owners and why the state’s share of the economy has approached a critical threshold.

NeMoskva Reports

Nationalized companies: what has become of them in Russia

Nationalized companies in Russia are passing to new owners, but their profits and output often decline. We examine what has become of Vkusno — i Tochka, Baltika, Rodnye Polya, and other assets.