Over the past few months, many observers have been speculating that bailout efforts by state-owned banks to rescue Russian companies and large industrial interests would result in the nationalization of minority or controlling shares, thus dramatically increasing the government’s participation in the business sector.  It has been called loans for shares in reverse.  Already many of the country’s largest business owners have been snagged in this trap, their fortunes nearly evaporated, and put into a much more humble position before the discretion of the state (not that many of them were particularly independent to begin with).

All eyes have been on the crown jewel of Russian metals, Norilsk Nickel, which before the economic crisis hit with full impact was undergoing a high profile legal battle over control of one of the largest stakes.  All the way back in August, the feuding owners Mikhail Prokhorov and Vladimir Potanin agreed to swap 16.7% of Norilsk Nickel for 35% of Polyus Gold, in what was speculated to be part of a Putin-endorsed plan to create a new metals giant big enough to compete with BHP Bilton (call it the Gazprom of mining).  When Kremlin insider Alexander Voloshin was nominated to board of Norilsk on Dec. 26, these rumors of state takeover accelerated.

Today it appears to be official.  The Wall Street Journal reports that a new metals plan for the formation of a mega-consortium was discussed at a hastily called meeting late Tuesday between President Dmitry Medvedev, other senior officials and metals tycoons including Oleg Deripaska (Rusal), Vladimir Potanin (Norilsk Nickel), and Alisher Usmanov of Metalloinvest.