Kremlin distributes seized Ukrainian companies to loyal Russian businessmen - British intelligence

The UK Ministry of Defence reports.

It is noted that since the beginning of the full-scale invasion, Russia has brought about 180 companies under state control, presumably worth about $11.5 billion.

"Foreign-owned companies have almost certainly been prioritized, including companies owned by Russians who live abroad. This is highly likely due to the state's desire to reduce foreign (particularly Western) ties in the Russian economy," the report says.

At the same time, Russia is redistributing assets to Kremlin businessmen who support the war in Ukraine. This deprivatization is likely related to Russian President Vladimir Putin's call to create a new nationalist elite forged by the war in Ukraine.

"Increased defense spending has almost certainly increased the financial pressure on the Russian state, alongside economic sanctions and flows of capital out of Russia since the start of the invasion. The Russian state is highly likely establishing greater control over companies in 'strategic' industries such as defense," the intelligence service said.

• Russian occupation forces in the temporarily occupied territories of Kherson region are creating "school museums of a special military operation" to spread their propaganda.