LONDON (Reuters) – Russian President Vladimir Putin signed a decree on Friday enabling the state to suspend the directors and shareholders of any companies that fail to meet state defence contracts under conditions of martial law.
The decree would allow the industry ministry to name a new external administrator to take over the running of such companies.
Putin said in October he was introducing martial law in four regions of Ukraine that Moscow has partly seized control of and claimed as its own territory, a move condemned as illegal by most countries.
A year into the war with Ukraine, he has not extended martial law across Russia but has effectively placed the economy on a war footing, with defence factories working around the clock in three shifts to meet the needs of the army.
The new decree would apply to companies that “violate their obligations under a state contract, including failing to take measures to guarantee production deliveries”.
Asked earlier at his daily news briefing if martial law could be introduced in certain regions of Russia, Kremlin spokesman Dmitry Peskov said that was the president’s prerogative, but did not say whether Putin planned such a move.
(Reporting by Reuters; writing by Mark Trevelyan; Editing by Andrew Osborn)
