{"id":597537,"date":"2023-01-14T09:49:00","date_gmt":"2023-01-14T15:49:00","guid":{"rendered":"https:\/\/news.sellorbuyhomefast.com\/index.php\/2023\/01\/14\/russia-tycoons-fear-tightening-kremlin-squeeze-as-war-drags-on\/"},"modified":"2023-01-14T09:49:00","modified_gmt":"2023-01-14T15:49:00","slug":"russia-tycoons-fear-tightening-kremlin-squeeze-as-war-drags-on","status":"publish","type":"post","link":"https:\/\/newsycanuse.com\/index.php\/2023\/01\/14\/russia-tycoons-fear-tightening-kremlin-squeeze-as-war-drags-on\/","title":{"rendered":"Russia Tycoons Fear Tightening Kremlin Squeeze as War Drags On&#8230;"},"content":{"rendered":"<div>\n<p>(Bloomberg) &#8212;<\/p>\n<p>Most Read from Bloomberg<\/p>\n<ul>\n<li>\n<p><a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2023-01-13\/pfizer-bivalent-vaccine-linked-to-stroke-in-preliminary-data?utm_campaign=bn&#038;utm_medium=distro&#038;utm_source=yahooUS\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:Pfizer Bivalent Vaccine Linked to Strokes in Preliminary Data\">Pfizer Bivalent Vaccine Linked to Strokes in Preliminary Data<\/a><\/p>\n<\/li>\n<li>\n<p><a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2023-01-13\/tesla-price-drop-angers-current-owners-as-much-as-it-hits-profit-margins?utm_campaign=bn&#038;utm_medium=distro&#038;utm_source=yahooUS\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:\u2018I Feel Like I Got Duped\u2019: Tesla Price Drop Angers Current Owners\">\u2018I Feel Like I Got Duped\u2019: Tesla Price Drop Angers Current Owners<\/a><\/p>\n<\/li>\n<li>\n<p><a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2023-01-13\/trump-must-face-rape-accuser-s-battery-suit-judge-rules?utm_campaign=bn&#038;utm_medium=distro&#038;utm_source=yahooUS\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:Trump\u2019s Attack on NY Sexual Assault Law Called \u2018Absurd\u2019 By Judge\">Trump\u2019s Attack on NY Sexual Assault Law Called \u2018Absurd\u2019 By Judge<\/a><\/p>\n<\/li>\n<li>\n<p><a href=\"https:\/\/www.bloomberg.com\/opinion\/articles\/2023-01-12\/classified-documents-the-crucial-difference-between-biden-and-trump?utm_campaign=bn&#038;utm_medium=distro&#038;utm_source=yahooUS\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:The Document That Separates Biden and Trump\">The Document That Separates Biden and Trump<\/a><\/p>\n<\/li>\n<li>\n<p><a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2023-01-13\/yellen-says-us-to-take-extraordinary-steps-to-avert-a-default?utm_campaign=bn&#038;utm_medium=distro&#038;utm_source=yahooUS\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:Yellen Says US to Take Extraordinary Steps to Avert a Default\">Yellen Says US to Take Extraordinary Steps to Avert a Default<\/a><\/p>\n<\/li>\n<\/ul>\n<p>As Vladimir Putin pushes his war in Ukraine into its second year, the deepening militarization of Russia\u2019s economy is fueling fears among the country\u2019s business elite that the squeeze on their companies is only just beginning.<\/p>\n<p>The government is already considering \u201cone-time\u201d taxes on some big firms to help boost revenues reduced by the tightening grip of sanctions and other restrictions and tycoons said they expect the Kremlin to step up demands for cash. Wartime laws also give the authorities sweeping powers to dictate company operations, from what is produced to how much it costs.<\/p>\n<p>With public calls for tycoons who aren\u2019t enthusiastic enough in their support of the invasion be stripped of their assets, some of Russia\u2019s richest now worry they could see their holdings seized by rivals seen as more loyal or even nationalized, according to people familiar with their thinking. The Kremlin\u2019s public reassurances that business interests will be respected ring hollow with the Russian president\u2019s attention focused on the war, not business, these people said, speaking on condition of anonymity for fear of retribution.<\/p>\n<p>The growing fears highlight how the invasion, which the Kremlin initially hoped would deliver a lightning victory, has become a campaign without end that\u2019s transforming all aspects of Russian society irreversibly. The lifestyle that came to be known as \u2018dividend aristocrats\u2019 \u2013 tycoons who lived richly in recent years on huge profits from their companies \u2013 is gone forever, top executives said.<\/p>\n<p>Big business will have to feel the same shock as the war hits home as the rest of the country is, said a person close to the Kremlin, speaking on condition of anonymity. While Putin opposes widespread nationalization as a failed strategy, he said, the time when tycoons could reap the benefits of high commodity prices are over. Wartime, the person added, demands sacrifices from all.<\/p>\n<p>That attitude has some tycoons fearing that the business outlook is getting much dimmer fast. Some executives have commissioned confidential studies on the experiences of big business in situations they worry are likely to prove analogous: the pre-World War II regimes in Axis countries like Italy, where once-powerful industrial giants were ultimately taken over by the state and subjugated entirely to the war effort. Others draw parallels to the mobilization of German corporate giants under the Nazis.<\/p>\n<p>The budget deficit is already growing as spending on the war rises and sanctions and other limits squeeze revenues. \u201cThis is to a certain extent a mobilization budget,\u201d Sofya Donets, economist at Renaissance Capital said. Even the current amendments to the plan \u201ccall for a further increase in the tax burden, thought it\u2019s not clear yet when this will happen,\u201d she said.<\/p>\n<p>So far, the government hasn\u2019t publicly acknowledged using the sweeping powers it gave itself last summer to force business to support the war effort. But tycoons and executives worry they will have little alternative but to comply with any requests for manpower, production or cash.<\/p>\n<p>The state will take whatever it thinks it needs for the war effort, said a longtime business lobbyist. If in the past, tycoons could work the phones and their contacts in government to protect their interests, those tools now don\u2019t work, he said.<\/p>\n<p>Among the most vulnerable are those perceived to be insufficiently loyal, according to people familiar with the tycoons\u2019 thinking.<\/p>\n<p>Legislators have proposed stripping those who have left and criticize the war of their assets and even citizenship. Dmitry Medvedev, the former president who is now a senior Kremlin official known for his angry social-media posts, in December called for designating them \u201cenemies of the state.\u201d<\/p>\n<p>Putin hasn\u2019t gone that far in public, but he makes no secret that he believes Russians with too much of their wealth abroad are a security risk.<\/p>\n<p>\u201cIf a person doesn\u2019t link his life with this country but just takes money out and keeps everything outside, then he values not the country he lives and earns money in but the good relations in the one where he keeps his property and accounts,\u201d Putin told reporters on Dec. 22. \u201cThis kind of person poses a danger to us.\u201d<\/p>\n<p>Any expropriation will start with those who\u2019ve left Russia, said one tycoon who hasn\u2019t returned to the country since the war started. He cited the examples of Yandex, the tech giant whose founder \u2013 now in Israel \u2013 has sought to negotiate with the Kremlin for an exit that allows him to retain some key businesses, and Oleg Tinkov, who has said he was forced to sell his bank at a deep discount after becoming one of the only wealthy Russians to publicly denounce the war.<\/p>\n<p>Putin remains opposed to sweeping nationalization, according to people familiar with internal discussions, but that\u2019s little reassurance to tycoons who worry that rivals with better connections to the leadership will be able to take control of their holdings.<\/p>\n<p>In the fertilizer sector, where surging prices have yielded a bumper crop of profits, Uralchem founder Dmitry Mazepin, the only tycoon to have publicly met Putin one-on-one twice last year, has sought to portray himself as the only big shareholder focusing on the state\u2019s interests, according to several executives at industry rivals. That\u2019s alarmed some others in the sector who\u2019ve stayed out of Russia since the war started, according to people familiar with their thinking.<\/p>\n<p>Mazepin, who heads the fertilizer committee at Russia\u2019s biggest business group, said he didn\u2019t see consolidation in the industry as likely now. \u201cNo one has a competitive advantage &#8211; political or otherwise &#8211; that would lead to any serious changes,\u201d he said.<\/p>\n<p>Most Read from Bloomberg Businessweek<\/p>\n<ul>\n<li>\n<p><a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2023-01-12\/first-class-flight-demand-has-airlines-reviving-jumbo-jets?utm_campaign=bw&#038;utm_medium=distro&#038;utm_source=yahooUS\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:Airlines Resurrect Ancient Jumbo Jets to Meet First- and Business-Class Demand\">Airlines Resurrect Ancient Jumbo Jets to Meet First- and Business-Class Demand<\/a><\/p>\n<\/li>\n<li>\n<p><a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2023-01-12\/housing-market-in-2023-will-be-shaped-by-fed-policy?utm_campaign=bw&#038;utm_medium=distro&#038;utm_source=yahooUS\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:Housing Pain to Continue Until Economy Slows and Prices Fall\">Housing Pain to Continue Until Economy Slows and Prices Fall<\/a><\/p>\n<\/li>\n<li>\n<p><a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2023-01-11\/will-used-car-prices-drop-in-2023-data-suggest-so?utm_campaign=bw&#038;utm_medium=distro&#038;utm_source=yahooUS\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:Used-Car Prices Are Finally Dropping\">Used-Car Prices Are Finally Dropping<\/a><\/p>\n<\/li>\n<li>\n<p><a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2023-01-12\/2023-economic-outlook-will-test-bankers-used-to-cheap-money?utm_campaign=bw&#038;utm_medium=distro&#038;utm_source=yahooUS\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:Young Bankers Who Got Used to Smooth Sailing Prepare for a Storm\">Young Bankers Who Got Used to Smooth Sailing Prepare for a Storm<\/a><\/p>\n<\/li>\n<li>\n<p><a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2023-01-13\/starbucks-sbux-new-ceo-laxman-narasimhan-faces-big-task?utm_campaign=bw&#038;utm_medium=distro&#038;utm_source=yahooUS\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:Starbucks\u2019s New CEO Has Tall Orders to Fill\">Starbucks\u2019s New CEO Has Tall Orders to Fill<\/a><\/p>\n<\/li>\n<\/ul>\n<p>\u00a92023 Bloomberg L.P.<\/p>\n<\/div>\n<p><a href=\"https:\/\/news.yahoo.com\/russia-tycoons-fear-tightening-kremlin-080014614.html\" class=\"button purchase\" rel=\"nofollow noopener\" target=\"_blank\">Read More<\/a><br \/>\n Thomas Howe<\/p>\n","protected":false},"excerpt":{"rendered":"<p>(Bloomberg) &#8212; Most Read from Bloomberg Pfizer Bivalent Vaccine Linked to Strokes in Preliminary Data \u2018I Feel Like I Got Duped\u2019: Tesla Price Drop Angers Current Owners Trump\u2019s Attack on NY Sexual Assault Law Called \u2018Absurd\u2019 By Judge The Document That Separates Biden and Trump Yellen Says US to Take Extraordinary Steps to Avert a [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":597538,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[534,1768,104322],"tags":[],"class_list":["post-597537","post","type-post","status-publish","format-standard","has-post-thumbnail","category-financial","category-russia","category-tycoons"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts\/597537","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/comments?post=597537"}],"version-history":[{"count":0,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts\/597537\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/media\/597538"}],"wp:attachment":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/media?parent=597537"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/categories?post=597537"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/tags?post=597537"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}