Date: 30 June 2022 Author: Grzegorz Kuczyński

Is Putin Introducing War Communism?

State Duma, the lower house of the Russian parliament, received a draft federal law on “special economic measures” that in fact introduced a centrally planned economy and make private businesses dependent on the state.

The Kremlin submitted a bill to the State Duma on “special economic measures” for “counterterrorist and other operations” outside of Russia. The bill proposed, among other measures, the implementation of material assets from state reserves and the temporary activation of mobilization capacities and facilities, as well as overtime work in individual organizations. No company will be allowed to dismiss a state tender. What was referred to as special measures includes the dispersion of material assets from state reserves and some unspecified activities. The text of the draft law notes the need for Russia to repair its weapons and military equipment amid “a special military operation in the territories of the Donetsk People’s Republic, the Luhansk People’s Republic, and Ukraine.” Whether it will apply to other industries remains unknown. Perhaps the bill will enable what is known as silent military mobilization. The draft law was published to subordinate the whole state, including its economy, to Putin’s war in Ukraine. The Kremlin has submitted the bill to avoid admitting that it was actually waging a war. Another thing is that Gazprom canceled its record-high 2021 dividends. The state, or Gazprom’s main shareholder, will not be paid. What does this entail? Certainly, Gazprom will no longer be a stock exchange company, turning into a tool in the hands of the Russian government. Gazprom shares plunged by 30 percent on the decision that reversed a board recommendation to pay dividends to shareholders.

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