The recent decision to nationalize Lesta, the company behind the popular “World of Tanks” franchise, has sent shockwaves through the Russian IT market, prompting concerns about the future of business and investment in the country. The move, which effectively declares the company as extremist, raises questions about the security of assets and the potential for similar actions against other businesses.
The nationalization of Lesta follows a court decision to seize 100% of the shares of Lesta LLC, Lesta Games Agency LLC, and Lesta Games Moscow LLC, transferring them to the Russian Federation. This decision stems from suspicions that the company was financing the Ukrainian Armed Forces, despite Lesta’s efforts to distance itself from the pro-Ukraine stance of its former co-founder, Viktor Kislyi.
Experts estimate the total value of the business acquired by the state to be approximately 50 billion rubles, encompassing assets, retained earnings, and real estate holdings in Moscow, St. Petersburg, and Tashkent. While Lesta’s lawyers have announced plans to appeal the court decision, industry insiders suggest that any legal challenge is unlikely to succeed.
The nationalization also presents immediate challenges to the continued operation of “World of Tanks.” The license agreement for the game, which was transferred to Lesta following the division of WarGaming in 2023, is reportedly contingent on Malik Khatazhaev’s operational management of the company. With the state now in control, the license could be automatically canceled, potentially placing the game in a “pirate status.”
Furthermore, the nationalization could jeopardize Lesta’s access to essential software tools from Western companies and impact the distribution of “Tanks Blitz” for mobile phones, which generates a significant portion of the company’s revenue through platforms like the AppStore and Google Play. The company’s Uzbek subsidiary, which facilitated access to these platforms and Western licenses, may no longer be viable following the change in ownership.
While the future of Lesta remains uncertain, the state stands to gain considerable assets, including the company’s accumulated funds and real estate holdings. However, the long-term impact on the “World of Tanks” franchise and the broader Russian IT industry remains to be seen. The situation could lead to further demotivation among Lesta employees, potentially triggering an exodus of talent to competitors or foreign countries.