Putin is planning a major privatisation of state-owned assets in a bid to boost its struggling economy amid Western sanctions.
Russian finance Minister Anton Siluanov announced the government will sell stakes in seven large companies to raise 300 billion rubles (£3.66billion).
The move comes as Moscow seeks to generate billions in federal budget revenue after the exodus of Western capital from its sanctions-hit economy.
The privatisation plan includes assets seized by court order since the start of President Putin's invasion of Ukraine.
The move comes as Moscow seeks to generate billions in federal budget revenue after the exodus of Western capital from its sanctions-hit economy
GETTYThe announcement resurrects a stalled 2010 campaign to dispose of state assets, which had proposed selling shares in 30 state-owned companies.
Russia's Prosecutor General's Office has filed lawsuits to seize assets from companies deemed to be harming the country's security.
Putin has insisted this is not a reversal of privatisation.
Firms in the military-industrial complex, engineering, food, ports and real estate linked to business owners abroad were most often targeted.
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This has raised concerns among businesses about the scope of nationalisations.
The privatisation plan comes as Russia faces significant budget difficulties caused by Western sanctions imposed following the Ukraine invasion.
The Kremlin is grappling with multiple economic challenges, including a worker shortage and rising inflation. The sale of state assets aims to fund Russia's military operations as the conflict continues.
Timothy Ash, an emerging markets strategist at BlueBay Asset Management, told Newsweek the plan highlights the financial pressures Russian authorities face.
Vladimir Milov, a Putin critic and former Russian deputy energy minister, expressed scepticism about the plan's viability
GETTY
It also demonstrates how Moscow has drawn down resources in its sovereign wealth fund.
Vladimir Milov, a Putin critic and former Russian deputy energy minister, expressed scepticism about the plan's viability.
He told Newsweek that the privatisation would struggle to attract market players.
"This is of little interest for market players... such minority ownership requires significant investment but doesn't provide any opportunity for real influence over governance in companies still dominated by state control," Milov said.
He added that no one wants to buy "useless minority stakes, which give zero influence and control".
Milov noted that previous privatisation announcements by Russian authorities were rarely followed by concrete actions.
Vasily Astrov, an expert at the Vienna Institute for International Economic Studies, described the plan as "another episode in property redistribution in Russia"
He suggested private actors close to the government would likely acquire the assets.
Boris Grozovski, a Russian economics expert at the Wilson Center, explained Siluanov's motivation.
"Siluanov has great difficulties with the budget for 2025 and beyond, and 2-3 trillion a year would help him a lot," Grozovski said.
He added this financial pressure was why the finance minister "came up with this idea".
Russia's Finance Ministry has added dozens of new entries to the list of federal assets slated for privatisation over the next two years.
Russia's Finance Ministry has added dozens of new entries to the list of federal assets slated for privatisation over the next two years
GETTY
Auctions for these assets are scheduled for the second quarter of 2025.
According to Grozovski, the actual extent of privatisation remains uncertain.
Many of the nationalised enterprises are directly or indirectly connected to the military-industrial complex.
Siluanov has stated that privatisations would intensify, projecting that revenues from property sales this year would reach at least 100 billion rubles (£1.23billion).
