(Bloomberg) -- Russian President Vladimir Putin signed a decree Friday laying out new rules for tightening control of companies that fail to fulfill defense contracts in the event martial law is imposed, the latest step in the Kremlin’s preparations for militarizing the economy as its invasion of Ukraine stretches into a second year.

Most Read from Bloomberg

• Mortgage Lenders Are Selling Homebuyers a Lie

• China’s Modest GDP Growth Target Reduces Need for More Stimulus

• World’s Riskiest Markets Stumble Into Crisis With Dollars Scarce

• Amazon Is Closing Its Cashierless Stores in NYC, San Francisco and Seattle

• Russia Is Getting Around Sanctions to Secure Supply of Key Chips for War

Under the decree, the state would get the power to take over firms that fail to meet their obligations under military contracts during the period of martial law, suspending the rights of owners and shareholders. A government working group is to be set up on the operations of arms companies under martial law, according to the order, the text of which was published Friday.

The Kremlin has imposed martial law in the regions of Ukraine its forces currently occupy, except Crimea. Officials have said there are no plans at present to enact it more widely despite periodic calls over the last year to do so.

Russia Tycoons Fear Tightening Kremlin Squeeze as War Drags On

After the start of the invasion last year, Russia pushed through legal changes giving the government broad powers to control companies’ behavior if needed, mandating what to produce and at what price. It hasn’t yet used that widely, however.

Most Read from Bloomberg Businessweek

• Yellowstone Backers Wanted to Cash Out—Then the Streaming Bubble Burst

• FBI Documents Show Leonardo DiCaprio, Kim Kardashian Grilled for 1MDB Secrets

• How Countries Leading on Early Years of Child Care Get It Right

• Female Execs Are Exhausted, Frustrated and Heading for the Exits

• Microsoft Expands Game Pass as Regulators Fret Over Activision Deal

©2023 Bloomberg L.P.