MOSCOW, May 30. /TASS/. The Russian government reserves the right to place under state control any defense company that fails to execute military contracts in times of martial law, suspending shareholder rights in such conditions.

A relevant decree from Russian President Vladimir Putin was posted on the official website of legal information.

During wartime, such measures may be imposed at the suggestion of the Ministry of Industry and Trade "to the extent needed for purposes of honoring contractual obligations," the document indicates.

In particular, this covers aviation and shipbuilding companies and their subcontractors and defense sector firms. The latter will face external management when defaulting "on a contract for supply of such products to a foreign customer, its obligations under an agreement made for development and/or manufacturing of defense products," according to the document.

The decree comes into force from today. Since October 2022, martial law has been in effect in Russia’s Donetsk and Lugansk People’s Republics, Kherson and Zaporozhye Regions.