The Russian government is strengthening its defense framework, including private companies, in response to Ukrainian drone attacks. While counter-drone spending is surging, companies are increasingly introducing defense equipment.
Last month, the Russian government issued a presidential decree directing private companies and facilities to fulfill their responsibility to respond to Ukrainian drone attacks, warning that the state could temporarily confiscate assets that should be protected. Against this backdrop, Russian companies are procuring defense-related equipment and increasingly making their own defensive equipment.
Russian companies' counter-drone spending rose sevenfold year on year in the first half of this year, reaching 440 million rubles, or approximately ¥820 million, according to reports. Some companies have begun hiring shooters and establishing surveillance and defense systems to shoot down drones.
At the beginning of this month, Russia issued a presidential decree allowing postal workers to possess weapons and ammunition and shoot down drones. It is seeking to address the expanding damage from Ukrainian attacks by mobilizing the private sector and strengthening its defense posture.
The damage is spreading to industrial and logistics facilities across Russia, with at least 36 sites, including logistics centers operated by Russia's largest online retailers Ozon and Wildberries, coming under attack. The Ministry of Finance announced tax incentives for defense and recovery costs, while the central bank announced a capital injection for reinsurance.
On the diplomatic front, Foreign Minister Sergey Lavrov called for the removal of security threats in an address to the U.N. General Assembly and held his first meeting with German Foreign Minister Wadephul. Talks on easing tensions are expected to influence developments going forward.