Russia is trying to monetize a record volume of seized assets to support the state budget amid rising war expenditures caused by the war in Ukraine. However, these sales are running into a lack of buyers, Bloomberg reports.
According to the agency, the Russian authorities expect to partially offset the budget deficit through the privatization of nationalized property. At the same time, the broader economic situation and high risks for investors are complicating the implementation of these plans.
Failed Sale of Domodedovo
As Bloomberg reports, the Kremlin failed to sell Domodedovo Airport, one of Russia’s largest and strategically important airports. The state offered the asset at a minimum price of 132 billion rubles ($1.7 billion). This amount exceeded the total proceeds from privatization for the entire previous year. However, the auction attracted no qualifying bids.
Meanwhile, Russian media reported that companies linked to several billionaires showed interest in the asset. Nevertheless, potential buyers withdrew from the bidding process. They cited a deterioration in the airport’s financial performance, a heavy debt burden, and broader macroeconomic risks.
Russian businessman Oleg Deripaska described the starting price as inflated in a social media post. In addition, he pointed to high interest rates and a strong ruble. According to him, these factors reduce the investment appeal of such deals.
Scale of Confiscations
According to the Moscow-based law firm Nektorov, Saveliev & Partners, Russia confiscated property worth 3.12 trillion rubles in 2025. This figure is more than four times higher than in 2024.
Authorities nationalized Domodedovo last summer. They said the strategically important asset was controlled by individuals with foreign citizenship or residence permits. The government stated that such control violated Russian law.
Other Failed Auctions
Bloomberg also notes that Russia failed to sell other nationalized assets. In December, an auction for Raven Russia Group ended without any bids. The company owns about 2 million square meters of warehouse property.
In addition, according to a Russian business outlet, the sale of the gold producer Yuzhuralzoloto was postponed. Officials cited the company’s complex corporate structure as the reason.
Conclusion
According to Russian media, Russia plans to put Domodedovo up for sale again on January 29. The authorities intend to use a so-called Dutch auction, with the starting price potentially reduced by up to 50%. At the same time, experts interviewed by Bloomberg say potential buyers fear risks to property rights. Despite this, analysts expect asset confiscations in Russia to continue.
