Ivanovo Heavy Machine Tool Plant

History

2025: Nationalization

The Supreme Court of Russia nationalized the shares of the open joint-stock company Ivanovo Heavy Machine Tool Plant. The Board of Economic Disputes concluded that in the early 1990s the enterprise was privatized illegally. This was reported by Interfax with reference to the press service of the court on October 23, 2025.

During the trial, the circumstances of privatization were established. In December 1992, the property management committee of the administration of the Ivanovo region decided to transform the plant. The enterprise, which is of strategic importance for the defense and security of the country, was transformed into a joint-stock company.

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Фото: Wikipedia

The regional committee approved a plan for the privatization of the enterprise. After that, the property of the plant was included in the authorized capital of the company being created. The court found that these actions by order of the state enterprise were committed in excess of authority.

In the absence of the necessary decision of the Government of the Russian Federation, the transfer of property was declared illegal. As a result of these actions, the property was removed from the possession of the state. The Supreme Court found a violation of the procedure for the privatization of a strategic facility.

The Supreme Court earlier decided to re-consider the nationalization of the plant. The reason is the cassation appeal of the General Prosecutor's Office of the Russian Federation. The supervisory authority insisted on the illegality of privatization and the sale of a controlling stake in the enterprise.

The Prosecutor General's Office in the cassation submission pointed to violations during the sale. According to the supervisory authority, strategic property was removed from state property illegally. The case concerns the protection of public interests and the country's defense capability.

The Prosecutor General's Office emphasized that privatization took place without the proper permission of federal authorities. Production facilities were stopped at the enterprise. Severed ties with the defense complex. Assets are transferred to affiliated structures.^[1]

Notes