The Russian government’s decision to nationalize Lesta, the company behind the popular “World of Tanks” franchise, has sent shockwaves through the IT market. This move, justified by accusations of extremist activity and financing of the Ukrainian army, raises serious questions about the investment climate and the future of the gaming industry in Russia.

The court ruling mandates the seizure of 100% of the shares of Lesta LLC, Lesta Games Agency LLC, and Lesta Games Moscow LLC, transferring them to the Russian Federation. While counterparties are protected from liability for financing terrorism, the decision casts doubt on the company’s future operations.

Lesta’s financial performance has been strong, with revenues exceeding 35 billion rubles and a net profit of 16 billion rubles in 2024. The games boast a massive user base of over 60 million registered players and 6.5 million active monthly players.

The situation is further complicated by the circumstances surrounding the company’s ownership and licensing agreements. The license for “World of Tanks” is contingent upon Malik Khatazhaev’s continued operational management of Lesta, a condition that is now jeopardized. The loss of this license could lead to piracy issues and difficulties in obtaining necessary software from Western companies.

Another challenge lies in the fate of Lesta’s Uzbek subsidiary, which owns the “Tanks Blitz” mobile game. The app’s distribution through the AppStore and Google Play may be jeopardized following the nationalization.

Despite these challenges, the new owners will inherit Lesta’s assets, including significant cash reserves and real estate holdings. Experts estimate the total value of the business at approximately 50 billion rubles. Lesta’s lawyers plan to appeal the court decision, but the outcome is uncertain.