• President Putin signs decree enabling expedited, non-transparent sales of state assets
  • Move represents Russia's latest countermeasure against expanding Western sanctions in 2025
  • Special procedure aims to maintain liquidity and operational control over sanctioned industries

Russian President Vladimir Putin has signed a decree permitting a special privatization procedure as part of Moscow's escalating response to Western sanctions that have intensified this year to target key Russian industries and assets.

The order allows for expedited or non-standard sales of certain Russian state assets, particularly in sectors impacted by international sanctions. This measure grants the government significant flexibility to restructure state holdings or divest assets under mechanisms shielded from standard transparency or foreign ownership rules.

According to people familiar with the matter, the special procedure is designed to respond directly to asset freezes and sanctions imposed by the EU, UK, and US that have targeted Russia's energy, mining, and financial services sectors. The move comes as the Russian government has simultaneously extended restrictions on the export and import of key raw materials while instituting increased duties for some categories.

"This is about maintaining operational control and liquidity for assets that Western sanctions have tried to isolate," said one Moscow-based financial analyst who requested anonymity due to the sensitivity of the matter. "The government needs mechanisms to keep these enterprises functioning without being hamstrung by international restrictions."

The decree reflects Russia's broader economic pivot toward import substitution and alternative trade partnerships as Western disengagement accelerates. Economic policy now increasingly focuses on cushioning state-owned and strategic sectors from international pressure while boosting domestic investment.

Unlike the shock privatizations of the 1990s, current moves are explicitly positioned as defensive measures—aimed at protecting rather than liberalizing the economy. The special procedures could facilitate asset transfers to domestic oligarchs or entities in "friendly" countries while bypassing standard transparency requirements.

Market participants expressed concerns about the potential for non-transparent asset transfers and concentration of ownership. "When you create special procedures outside normal channels, you inevitably raise questions about fairness and valuation," the analyst added.

Efforts to reach government spokespeople for additional comment were unsuccessful Thursday afternoon.

The development occurs as the US Congress considers new legislation, including the "Sanctioning Russia Act of 2025," that would target additional Russian sectors and bar dealings with sanctioned entities. Russian authorities have emphasized that these countermeasures are necessary to shield national interests and ensure economic security.

Correction: An earlier version of this article misstated the scope of assets affected by the decree. The special privatization procedures apply to state assets across multiple strategic sectors, not exclusively to energy holdings.