Putin Orders State Firms to Leave Moscow for Regional Growth

President Vladimir Putin has announced a major plan to move large state-owned companies from Moscow to other Russian regions. The decision was revealed at the St. Petersburg International Economic Forum. The goal is to reduce pressure on the capital while boosting regional economies. Around 170 state-owned firms are being considered for relocation. Among them are RusHydro, PS Bank, United Engine Corporation, and Russian Railways, along with other railway construction entities. These companies are expected to choose regions with stronger infrastructure and logistical benefits.

Despite its vast mineral wealth, Yakutia is not part of the relocation plans. The republic holds over 3,500 subsoil use licences and hosts more than 1,000 mining enterprises. Only two large mining companies, Seligdar PJSC and ALROSA PJSC, currently have their main headquarters there. ALROSA, though maintaining an office in Moscow, pays about 75% of its taxes to Yakutia’s budget. The relocation aims to create new jobs and strengthen local budgets. Yakutia, however, will likely not see new corporate headquarters arrive. Its exclusion comes despite its significant mineral resources and existing mining industry.