Putin Grants State Power to Seize Critical Infrastructure as Drone War Hits Home

MOSCOW — President Vladimir Putin on Monday signed an executive order granting the Russian government sweeping powers to take temporary control of critical infrastructure sites deemed poorly protected against Ukrainian drone strikes, a move that signals the Kremlin’s growing alarm over the summer’s escalating attacks on the country’s economic backbone.

Putin Grants State Power to Seize Critical Infrastructure as Drone War Hits Home

Moscow, Russia — The decree, published on the Kremlin’s website, allows the state to assume temporary administration over the physical, financial and legal assets of economic entities that fail to secure or repair facilities deemed essential to national security. The order spans fuel and energy sites, industrial plants, communications networks, transport hubs and commercial logistics centers — a broad category that now places some of Russia’s largest private companies within reach of state control.

Executive Order Targets Security Failures

According to the text of the executive order, “On the Security of Critical Infrastructure in the Russian Federation,” temporary administration may be introduced over all or part of the movable or immovable property of an economic entity if it fails to take timely measures to ensure security or does not restore damaged facilities within a required timeframe. The government is tasked with issuing resolutions detailing how these powers will be implemented, at the president’s instruction.

The decree defines critical infrastructure broadly, encompassing fuel and energy facilities, industrial sites, communication systems, utility networks, transport and logistics complexes, nuclear energy sites, and other facilities “of high importance for the security and economic stability of the Russian Federation and the functioning of its population.”

The order comes just one week after Putin instructed the government to help rebuild commercial warehouses damaged in Ukrainian attacks, according to the Moscow Times. It also follows a year of mounting pressure on Russia’s fuel and logistics sectors, which have become primary targets for Kyiv’s drone campaign.

Ozon Hit Across Southern Russia

The decree landed on the same day that Ozon, Russia’s second-largest online retailer, reported that four of its logistics centers across southern Russia were targeted in overnight drone strikes. Local officials in the Krasnodar region said at least three teenagers were killed in the attacks, with drone debris falling onto a “private children’s center,” according to the Moscow Times.

Maria Lvova-Belova, Russia’s human rights chief, said another six children were hospitalized with injuries from the attack in Krasnodar. Ozon said a large fire broke out at its logistics hub in the town of Enem in the Krasnodar region, and it also reported a fire at a facility in the republic of Dagestan, with several people injured. Workers were evacuated from Ozon warehouses in the republic of Adygeya and the Stavropol region, though neither facility was damaged.

The attacks sent shockwaves through Russia’s financial markets. Shares in Ozon fell by as much as 28% on the Moscow Exchange on Monday, while shares in AFK Sistema, the retailer’s major shareholder, dropped more than 13%.

Warehouses Become Military Targets

Ukraine began attacking Ozon warehouses this weekend after more than a month of strikes against facilities owned by its biggest competitor, Wildberries. Officials in Kyiv have accused Wildberries of supplying the Russian military with drone parts and other equipment, a charge the company has denied. Ozon also suspended operations at its logistics center in the Samara region after it was hit by Ukrainian drones on Saturday.

The targeting of e-commerce logistics hubs marks a significant shift in Ukraine’s strategy. Over the summer, Kyiv’s forces have ramped up attacks not only on oil refineries but also on the warehouses and distribution networks that underpin Russia’s domestic economy. Analysts suggest this could indicate a deliberate effort to disrupt civilian supply chains and increase public pressure on the Kremlin.

Fuel Crisis Deepens

The new executive order must be understood against the backdrop of a deepening fuel crisis that has gripped Russia for over a year. According to background reporting, increased Ukrainian drone attacks on Russian oil refineries starting in August 2025 caused widespread damage and a significant decrease in refined products production, leading to fuel shortages across the country.

The crisis escalated sharply in mid-2026. Russian-controlled Crimea declared a state of emergency in June and banned fuel sales. By July, most of Russia’s regions experienced fuel restrictions, directly affecting an estimated 50 million people — approximately 35% of the Russian population. Russia also suspended civilian shipping through the Don-Azov Shipping Canal and the Kerch Strait following concentrated attacks on oil tankers in the Sea of Azov.

In response, the government allowed certain refineries to lower production quality standards from Euro-5 gasoline to Euro-3 until the end of the year, a stopgap measure that underscores the severity of the refining shortfall. According to a CNN analysis from June 2026, Ukraine has struck Russian oil facilities over 300 times since February 24, 2022.

State-Economy Relations Under Strain

The executive order represents a significant expansion of state power over private enterprise, even by Russian standards. While the Kremlin has long maintained a tight grip on strategic sectors, the ability to assume temporary administration over assets — including financial and legal holdings — of companies deemed insufficiently protective is a new lever of control.

This could indicate that the Kremlin is preparing to intervene directly in the management of critical facilities rather than relying on owners to restore operations. Analysts suggest this signals a growing impatience in Moscow with the private sector’s ability to adapt to the realities of a prolonged drone war.

At the same time, the government is offering some relief. Finance Minister Anton Siluanov said on Monday that the government had proposed tax relief for Wildberries and its sellers after the drone attacks, including a deferral of taxes and insurance payments and a freeze on tax audits. The move appears designed to keep the e-commerce sector afloat while the state considers more forceful measures.

Kremlin’s Broader Security Posture

The decree is not the first time Putin has expanded state powers in the name of protecting critical infrastructure. In December 2025, he signed an executive order authorizing the military to summon members of its mobilization reserve for “special” assemblies aimed at protecting critical infrastructure. That earlier order, combined with Monday’s decree, points to a broader Kremlin strategy of militarizing the defense of economic assets.

Ukrainian officials have not commented directly on the new decree, but Kyiv has consistently framed its drone campaign as a legitimate response to Russia’s ongoing invasion. Ukrainian strikes on Russian soil have intensified throughout 2026, with a focus on targets that directly support the Russian war effort or fund it through export revenues.

Impact on Ordinary Russians

For ordinary Russians, the consequences of the drone war are becoming increasingly tangible. Fuel restrictions have already affected daily life in many regions, and the attacks on Ozon and Wildberries warehouses have raised concerns about the reliability of online retail, which has become a lifeline for many outside major cities.

The state’s new powers to take over logistics and energy facilities could stabilize operations in the short term, but economists warn that increased state control often comes at the cost of efficiency and investment. The Kremlin’s move may also deter private companies from investing in security upgrades if they fear the state will simply step in and manage their assets.

What Comes Next

The executive order leaves many questions unanswered. It does not specify which facilities will be prioritized for temporary administration, nor does it outline the criteria for determining whether an entity has failed to secure its assets adequately. The government is expected to issue implementing resolutions in the coming weeks, and the business community will be watching closely.

What is clear is that the Kremlin is no longer treating Ukrainian drone strikes as a military problem alone. By granting the state the power to seize control of critical infrastructure, Putin has signaled that the defense of Russia’s economy is now a matter of state security — and that private owners who fail to protect their assets may find themselves on the outside looking in.

By Irina Volkov, Staff Writer

This article was produced with AI-assisted research and editorial support. Reporting is based on sources cited in the article.