Putin decree allows state takeover of infrastructure amid drone attacks and market drops

Russia's stock market has seen significant volatility, with a nearly 30 percent drop in the shares of online retailer Ozon contributing to a broader market downturn. While the Kremlin has historically prioritized foreign policy over economic stability, President Putin has enacted a new decree allowing the state to temporarily seize control of critical infrastructure if it cannot adequately defend itself against attacks. This measure signals the Kremlin's growing concern over the security of vital sectors, including energy, industry, and logistics.

Ukrainian drone attacks have increasingly targeted civilian infrastructure within Russia. Ozon, the country's second-largest online retailer, recently had its warehouses attacked and evacuated due to threats. Although Ozon shares its logistical risks with insurers and lessors, market observers anticipate only moderate losses for the third quarter.

The situation is more critical for Wildberries, Russia's largest online retailer, often dubbed the "Russian Amazon." Since mid-July, it has faced repeated drone attacks, crippling 20 to 30 percent of its warehouse capacity. Wildberries' reliance on larger, self-owned warehouses makes it more vulnerable, with estimated repair costs potentially reaching up to three billion euros.

The retail sector is not the only target; Ukraine has also been striking Russia's oil industry, including export terminals and refineries. These attacks, ongoing since spring, have already triggered a fuel crisis, forcing Russia to implement export bans with global repercussions.