The Russian government has nationalized Lesta, the publisher of the popular “World of Tanks” franchise, citing extremist activity and potential financial ties to the Ukrainian army. This decision, which has sent ripples through the IT sector, involves the seizure of 100% of Lesta’s shares, transferring them to the Russian Federation.

The move raises questions about the future of the game, its licenses, and the overall investment climate in Russia. Experts suggest that the nationalization could jeopardize Lesta’s licensing agreements, potentially leading to “pirate status” for the game outside of Russia and Belarus.

Lesta, formerly part of Wargaming, had a total revenue exceeding 35 billion rubles in 2024, with a net profit of 16 billion rubles. The company boasts a large user base, with over 60 million registered users and 6.5 million active monthly players across “World of Tanks” and “World of Warships.”

The court’s decision is particularly perplexing given that Lesta’s owner, Malik Khatazhaev, had distanced himself from Wargaming’s Belarusian co-founder, Viktor Kislyi, who had publicly supported Ukraine. Additionally, Lesta’s assets were primarily located in Russia, employing 2,300 people and investing in local infrastructure.

The nationalization raises concerns about the fate of Lesta’s assets, including approximately 8 billion rubles in accounts and three office buildings worth around 10 billion rubles. Experts estimate the total value of the seized business at around 50 billion rubles.

Lesta’s lawyers plan to appeal the court decision, but sources suggest that a successful challenge is unlikely. The situation also poses challenges for personnel, with concerns about demotivation and potential departures to competitors or abroad.

The company’s Uzbek subsidiary, which manages the mobile game “Tanks Blitz,” faces potential removal from the AppStore and Google Play due to the nationalization. This could significantly impact Lesta’s revenue, with “Tanks Blitz” accounting for up to 40% of its earnings.