Some companies have reportedly avoided defense contracts out of fear of falling under Western sanctions
Russian President Vladimir Putin on Thursday signed a law introducing special provisions in the economy during counter-terrorism and other operations by the country’s military abroad.
According to the legislation, Russian companies are now banned from refusing military contracts while such operations are ongoing. Mentioned in the document as covered under the provision are contracts for the purchase of goods and services for army use, as well as those aimed at creating stockpiles of products, raw materials and semi-finished goods for defense orders.
The measure is likely necessary due to the reluctance of some Russian companies to accept defense contracts. Western sanctions have targeted firms that were seen as aiding Moscow’s military operation in Ukraine. Previously sanctioned companies include Russian Railways, the country’s shipping and transport firms, military suppliers and banks.
When the special measures are introduced in the economy, the government will also have the right to temporarily reactivate mobilization capacities and facilities, as well as tap into the material assets of the state reserve.
The law is aimed at ensuring that the Russian Armed Forces are sufficiently equipped to carry out counter-terrorism and other operations outside of Russia.