Russia’s evolving military-industrial integration, the private Russian industrial firm Fores has awarded 15 million rubles (approximately US$195,000) to twelve servicemen of the Russian Armed Forces for reportedly shooting down the first U.S.-supplied F-16 Fighting Falcon jet in Ukraine. The reward ceremony, held on May 29, 2025, near the frontlines of Russia’s ongoing invasion, underscores how deeply private enterprise is now enmeshed in the Kremlin’s wartime strategy.
The payment was part of a publicly declared promise made months earlier by Fores CEO Sergey Shmotyev, who pledged a substantial financial bonus to the Russian unit that could claim the first downed F-16 in the warzone. During the St. Petersburg International Economic Forum, Shmotyev emphasized his company’s commitment to “supporting our fighters and defending the Motherland.” That commitment materialized with the formal handover of funds at a ceremony attended by senior Russian military officials, a move rich in symbolism and propaganda value.
The F-16 Fighting Falcon, one of the most advanced fourth-generation multirole fighter aircraft developed by the United States, is a linchpin of NATO’s air combat capabilities. Its deployment to Ukraine, part of a broader coalition effort, marked a significant upgrade in Kyiv’s defense posture. As of May 2025, Ukraine had received around 20 F-16s from European allies, including Denmark, the Netherlands, Norway, and Belgium, with plans to acquire up to 85 jets in total.
The shootdown of such a high-value asset—if verified—represents both a strategic setback for Ukraine and a symbolic victory for Russia. It signals that Russia’s air defense systems, including platforms like the S-400 Triumf and Buk-M3, can pose a credible threat to NATO-origin equipment. Moscow’s Ministry of Defence has framed the event as a demonstration of Russia’s technological and tactical edge over Western military systems.
Based in the Ural region, Fores began as a manufacturer of ceramic proppants and composite materials used in the oil and gas industry, particularly for hydraulic fracturing. But since the invasion of Ukraine in February 2022, the company has undergone a dramatic transformation. Now, it is one of the most prominent private contributors to the Russian war effort.
According to Russian state media, Fores has donated more than 237.7 million rubles (about US$3 million) in equipment and supplies to Russian forces. These include encrypted communication systems, electronic warfare tools, thermal sensors, tactical gear, and battlefield medical supplies. The company also claims to have delivered over 500 tonnes of pharmaceuticals and medical materials to front-line units in eastern and southern Ukraine.
The F-16 bounty is the latest and most public example of Fores’ dual role as both a corporate entity and a de facto logistical arm of the Russian military.
Fores’ actions reflect a broader Kremlin-endorsed phenomenon often referred to as “patriotic capitalism”—a form of state-sanctioned corporate nationalism in which private companies are not merely encouraged but expected to contribute materially to the war effort.
Analysts suggest this convergence of private capital and military objectives is part of Russia’s strategy to circumvent the effects of international sanctions, which have constrained the operations of traditional state-owned defense contractors. With Western technology and financing curtailed, the Kremlin has increasingly turned to domestic firms willing to fill the gap in war-related procurement and innovation.
“What we’re seeing is a new model of warfare logistics in Russia,” says Viktor Abramov, a military-industrial analyst at the Moscow Institute of Strategy and Security. “Private firms like Fores are acting as both sponsors and suppliers of war, which expands the state’s capacity without formally expanding the military-industrial complex.”
While financial rewards for military success are not new, the open involvement of a private company in issuing such incentives introduces a new and troubling dimension to the conflict. It raises ethical and legal questions about the privatization of wartime achievements, where corporate entities may profit not only from supplying war materials but also from shaping battlefield narratives.
Fores’ reward also serves as a morale booster for Russian troops and a propaganda tool to bolster domestic support for the war. State-run media outlets have prominently featured interviews with the awarded servicemen, describing them as heroes who struck a blow against Western imperialism. The messaging is clear: Russia can stand up to NATO, both technologically and ideologically.
The West has largely dismissed Russia’s claim of shooting down an F-16, noting that such incidents are difficult to verify independently. Ukraine’s Air Force Command has neither confirmed nor denied the loss, maintaining a policy of operational secrecy regarding its Western-supplied equipment.
Ukrainian President Volodymyr Zelenskyy speaking to servicemen next to an American single-engine supersonic multirole fighter F-16 jet during a ceremony to mark Air Force Day of the Armed Forces of Ukraine at an undisclosed location in Ukraine, 4 August 2024. (Photo: Presidential Press Service)
Still, Western defense officials are paying close attention. The loss of even a single F-16—an aircraft valued at tens of millions of dollars—would be a significant event. Not only would it undermine morale among Ukrainian forces, but it would also fuel Russian claims that Western military aid is ineffective or even futile.
In Brussels and Washington, policymakers have expressed concern about the increasing role of private Russian firms in sustaining Moscow’s military capacity. There is growing pressure to extend sanctions not just to traditional arms manufacturers but also to dual-use and “civilian” companies that are effectively part of the war machine.
As more F-16s arrive in Ukraine, analysts expect a shift in aerial tactics on both sides. For Ukraine, the focus will be on integrating Western fighter platforms into a battle environment saturated with long-range missile threats and advanced electronic warfare. For Russia, the challenge will be maintaining air denial without overextending its air defense capabilities.
The downing—real or perceived—of an F-16 could catalyze further Russian investment in air defense and perhaps even incentivize other companies to follow Fores’ example. Already, reports suggest that similar reward schemes may be in the works from other Russian corporations, including those in the mining and technology sectors.
Fores’ role in Russia’s war in Ukraine illustrates how modern conflicts increasingly blur the lines between civilian and military spheres. What began as an oilfield support company has become a symbol of national resilience and military-industrial synergy.
And the trend shows no sign of reversing. As sanctions bite deeper and the war grinds on with no clear end in sight, the Kremlin appears to be betting on its ability to outlast Western resolve through a combination of state power, private wealth, and ideological messaging. In this framework, firms like Fores are not outliers—they are the new norm.
This normalization of corporate participation in combat zones raises profound questions about accountability, governance, and the future of international conflict. As the war enters its third year, the battle for Ukraine is increasingly being fought not just with missiles and drones, but with rubles and reward systems backed by corporate logos.
