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Digimon
10-31-2007, 08:04 PM
Ames tries to cast some light on the recent events in Russia. Deserves a read from those who are interested in Russian politics:



Something big is happening in the world of Russian power. And it ain't pretty.

Two weeks ago, Viktor Cherkesov, the don of one of the main siloviki clans, published an open letter in Kommersant. Reports in the English-language press focused on how unusual it was for a silovik to take his problems public in the Putin Era--particularly a silovik of Cherkesov's stature. As head of the Federal Anti-Narcotics Agency, Cherkesov essentially runs a kind of FSB-2. And given the recent slew of high-profile arrests, along with Cherkesov's open letter, it looks as though FSB-2 is at war with FSB-1.

It's fitting that this war comes exactly 10 years after the outbreak of the Banker's War under Yeltsin, when the oligarchs divided into two mortal enemy camps in the fight over the last of Russia's unprivatized spoils. On one side of the Banker's War were Boris Berezovsky and Vladimir Gusinsky; and on the other side, the "baby billionaire" (to use the Washington Post's Fred Hiatt's own words) Vladimir Potanin and his men-in-power, the so-called "young reformers" headed by Anatoly Chubais, Boris Nemtsov, and Alexander Kokh. When the Berezovsky-Gusinsky clan felt cheated out of the privatization of Russia's telecommunications giant Svyazinvest, they took their war to the media, which they largely controlled through television stations ORT and NTV, as well as to the Russian security services, which they used to drudge up damaging kompromat. The end result of the Banker's War was the end of the oligarchy itself. Within a year of their feud, they and the system that made them collapsed.
Cherkesov warned in his letter that this very same suicidal scenario is playing out all over again today: as we near the end of the halcyon Putin Era, the once seemingly monolithic siloviki have divided into two warring camps struggling over power and assets. In one camp is the Cherkesov Clan, FSB-2; in the other, the clan headed by the FSB chief Nikolai Patrushev and his Kremlin allies led by the Presidential Administration deputy and Rosneft chief Igor Sechin. "We must not allow scandals and infighting," Cherkesov wrote in Kommersant. "There can be no winners in this war... There is too much at stake." He argued that not only would both clans lose, but the system built up in Putin's reign, the "corporatism" which Cherkesov argued has saved Russia from chaos, would go down with it.

If the "corporatist" system collapses, then it's back to chaos, just as the Banker's War ended in 1998 with the financial collapse and end of "liberal reforms."

First, a little background. Viktor Cherkesov is an old Putin ally. He headed the FSB in St. Petersburg in the 1990s, when Putin was the deputy mayor. After Putin came to power in 2000, he named Cherkesov as the Kremlin envoy for Russia's northwest region (which includes Petersburg), making Cherkesov one of seven regional envoys whose job was to bring the Russian Federation back under Kremlin control in the "vertikalnaya vlast" or vertical power scheme. In the spring of 2003, Cherkesov was brought back to Moscow to head the newly formed Federal Anti-Narcotics Agency.
The name of the structure is misleading. The Anti-Narcotics Agency was really turned into a second FSB, having absorbed the personnel and equipment and assets of the massive, all-powerful Tax Police, with an estimated 40,000 employees. It was set up as a kind of Russian FBI, tasked to fight economic and organized crime as well as drug trafficking.
Putin's massive reorganization of the security ministries in March 2003 was misunderstood at the time. It was either scoffed at or, oddly enough, praised by liberals like Irina Khakamada and Grigory Yavlinsky, who "supported the changes as a step toward efficiency and a sign that Putin is making the drug problem a priority," according to the Moscow Times.
Putin's reason for the reshuffle became clear only a few months later, when he took down his rival, Yukos oligarch Mikhail Khodorkovsky. Formally, Yukos was destroyed with tax evasion charges; that explains why Putin needed to bring the Tax Police under his control, as it had surely been infiltrated by Yukos. With a new 40,000-strong, heavily armed agency under the control of Putin's ally Cherkesov, Putin had two insurmountable weapons to deploy against the increasingly powerful Khodorkovsky--the Anti-Narcotics Agency, and the FSB, which was (and is) also headed by another St. Petersburg ally of Putin's, Nikolai Patrushev.
Khodorkovsky was destroyed, but a new Monster was born, Putin's Monster: the all-powerful siloviki. They now provided Putin with the stability and control he needed to run the country. But there was no one to check their power--except each other.

The ostensible spark for the Spooks' War today is the strange and nasty criminal investigation into a furniture front company called Tri Kita. It's a paranoiac's dream, involving corruption at the very highest levels of the FSB, money laundering, weapons smuggling, and several high-profile hits (including the poisoning of Duma deputy and Novaya Gazeta reporter Yuri Shchekochikhin, whom I used to interview for his enlightened anti-drug-war views in the late 1990s). Cherkesov's Anti-Narcotics Agency was given the job of investigating the Tri Kita case; the suspects and their patrons are the FSB, right up to the top level. Perhaps most incredible has been Putin's own inability to get the Tri Kita investigation under control; over the course of his presidency, he's had to intervene several times to keep the case alive. At one point he complained that Moscow was too corrupt, so he moved the investigation to the Leningradskaya Oblast.
In Putin's first term, the investigation into the Tri Kita scandal resulted in a handful of corpses, a few high-level firings, and a quashed investigation. In the early part of this decade, the Tri Kita scandal was thought by many to be a proxy war between the remnants of the Yeltsin Family clan, and the rising silovik clan.

In 2006, Putin revived the Tri Kita case in earnest and realigned the balance of silovik-clan power. Perhaps Putin sensed that one silovik clan was getting too powerful, or perhaps he was acting on bugged conversations between Sechin and his ally, the powerful Prosecutor General Vladimir Ustinov, which Cherkesov's people had allegedly recorded and handed to Putin. Ustinov was forced to resign, Sechin was brought down a notch, and while Patrushev was on summer vacation, his FSB and his allies in the Kremlin and the Interior Ministry were gutted by a slew of firings and reassignments. The purge took place shortly after Ustinov's son married Sechin's daughter, sealing what was thought to be an invincible alliance. You gotta assume that the firings and humiliations didn't go down too well with the FSB-1 clan. And it was bound to haunt both Cherkesov's clan, and Putin himself.

That was last year. Cut to 2007: it's the end of the Putin Era as we know it, and Cherkessov and his clan are feeling a little too fine. At the end of August, a key member of the Cherkesov clan, Vladimir Barsukov, is arrested in Petersburg. Barsukov reportedly headed the Tambov grupperovka which essentially controlled Petersburg in the 1990s. Russians will tell you that the story of Putin's ties to the Tambov grupperovka in the 90s is one of those stories that you just don't dare touch. When Putin assumed the presidency, most of the Tambov gang members were quietly eliminated in a kind of end-of-The-Godfather bloodbath, only without the opera soundtrack. Barsukov survived it and went legit. He is said to be close to the head of Putin's presidential security, Viktor Zolotov, who once protected Putin's mentor, former Petersburg mayor Anatoly Sobchak--yes, the same Sobchak who fertilized Ksenia Sobchak.

The arrest of Barsukov was a huge shot over the Cherkesov Clan's bow, reminiscent perhaps of the way that Putin's attack on Khodorkovsky began with the secret arrest of Yukos' head of security, Alexei Pichugin, a few weeks before turning on the top oligarchs and the oil company.
After that, an intense power struggle ensued: an FSB officer was arrested by Prosecutor-General Yuri Chaika (said to be aligned with Cherkasov) and charged in the Politkovskaya murder case, then subsequently released, in a humiliating slapdown for Chaika. A new Prime Minister, Viktor Zubkov, with long ties to Putin and long experience overseeing money-laundering investigations, took power. In September, the Prosecutor-General's office was formally stripped of many of its investigative powers, and 10,000 key employees, which were transferred to a new structure called the Investigative Committee, headed by Aleksandr Bastrykin, a former law school classmate of Putin's. Bastrykin allegedly is close to the Patrushev-Sechin clan, FSB-1, but as I'll argue, I have my doubts.
http://www.exile.ru/transient/274/the-clans.jpg (http://www.exile.ru/transient/274/the-clans.jpg)Click image to expand.

This month, five of Cherkesov's top people in the Anti-Narcotics Agency were taken down in mass public arrests, including his right-hand man, General Aleksandr Bulbov. This past Monday, Chaika's Prosecutor's Office demanded that Bulbov be released on technical grounnds, but the new Investigative Committee now trumps the power of the Prosecutor's Office. Meanwhile, kompromat reports are leaking to the media about Cherkesov's various business interests, including his lucrative ties to Semyon Vainshtok, the former head of Transneft, the oil and gas pipeline monopoly. Vainshtok was just replaced this week by Nikolai Tokarev, who served with Putin in the KGB in East Germany in the 1980s.
The Accounting Chamber, which monitors the federal government, has been rocked by a series of high-profile arrests over the past few weeks. The Chamber's head, former FSB chief Sergei Stepashin, responded by giving an interview in which he warned that those who were arresting his Accounting Chamber deputies today could be the ones arrested tomorrow. After the interview was published, Stepashin claimed that it was a fake and he'd never said a thing. The weirdness is accelerating with each day.
Putin hired his old mentor, the ass-kicker Viktor Zubkov, as his prime minister, and announced his Plan for staying in power by running for parliament on the United Russia ticket. Almost overnight, the Just Russia party, the Kremlin's long-held project to create a loyal left-opposition party, has collapsed.

What is happening?
I'll repeat: It's the End of the Putin Era as we know it. The struggle is on.

Here is how I see the current situation, from reading the various Russian reports and talking to people.

Putin had hoped or lulled himself into believing that he'd really set up the stable regime everyone thought Russia had become. The alleged stability had a kind of narcotic effect, convincing Putin's supporters that he'd done good, and his detractors that he'd gone Fascist or neo-Soviet. In fact, these two filters have led all of us to completely misunderstand what is really happening in Russia, and how potentially unstable the political power is, including Putin's own position.

There has been factional infighting all along, between various silovik clans, oligarch clans, and, to a lesser degree, Western interests. The infighting has been kept under control until recently by Putin's undisputed power, which he wielded to try to ensure some measure of balance. However, just as the Banker's War of 1997 showed, competing clans are never happy with their share of the "balance." As this autumn election season loomed, the two silovik clans' internecine war started breaking out, Putin, who may have wanted to step down from power and retire from glory, understood that things were potentially slipping out of his control as the clans battled for position and worked to weaken the other. Given Russian history, and given the high scary-factor of the two silovik clans, Putin should have every reason to worry about how badly he's going to sleep once he leaves the Kremlin. If power passed to one or the other clan, then London or Siberia or the untraceable-poison intensive care ward are all serious possibilities. The people poised to take power after Putin are pretty much guaranteed to make a lot of his detractors miss him.

It seems to me that Putin's recent moves--appointing Zubkov, setting up the new Investigative Committee, announcing his plan to head up the United Russia ticket, appointing his own man to run the Transneft pipelines (remember, it was over pipelines that Khodorkovsky and Putin went to war)--are all designed to ensure his power. It's hard to tell to what degree he is controlling the takedown of the Cherkesov clan or the Patrushev-Sechin clan, or if he even can control their battle. The fact that the two sides have taken their war to the media suggests that they're less afraid of upsetting their master than they used to be.

In short, Putin is already weakened. That's why he's scrambling to strengthen his position and weaken the other clans. Every move he makes from here on out is fraught with danger. If he runs for parliament, appoints his man Zubkov as president, and then becomes the prime minister of a new parliamentary republic--basically following the playbook of Khodorkovsky's plan to take power--then he'll subject himself to the uncertainty of whethor or not the new president will really hand over power to Prime Minister Putin. There could be a long tug-of-war and new factions will very likely emerge. He might get some of the power, but not all of it. Jealousies, greed, ambition, and the general mess of transition all mean that Putin could find himself locked in a serious and dangerous battle, if he already isn't in it.

His other option is the Kazakhstan Scenario. This year, Kazakhstan's dictator Nursultan Nazarbayev passed laws allowing him to remain in office for life, quashed what little remains of the opposition, and then held elections which turned his parliament into a single-party rubber-stamp committee. He managed this all with the West's collusion: when Nazarbayev announced legislation making him president for life this past May, U.S. State Department spokesman Sean McCormack called it "a step in the right direction," leading to outrage among Kazakhstan's beleaguered pro-democracy movement. When the rigged elections this summer gave him a one-party parliament, the OSCE hailed it as "welcome progress." Kazakhstan has for the past couple of years been the darling of **** Cheney and the neocons. Even self-described Russophobe Kim Zigfeld wrote a suspiciously placed article praising Kazakhstan's leap forward into Western democracy.

In other words, if Putin wants to be a democrat, he should change the constitution, stay in office for life, and make the United Russia party the only party in the Duma. That's what Nazarbayev advised Putin this past summer. "Worked for me!"

But if Putin does change the constitution to stay in power, then in many ways, his situation is even more precarious. If he was able to leave office next March and retire, he'd leave as perhaps the most popular leader in Russian history, with a turnaround win-loss record that would rival Bill Parcells'. If he stays in office, particularly now that he's overseeing and managing the silovik feud, he's going to make a lot of enemies fast. And history shows that if you stay in power past your legal date, you become increasingly authoritarian, increasingly isolated--and increasingly targeted. And it usually ends with exile or extradition. Or a bonfire.

What this means is that whatever's coming next is going to be ugly. We're all going to look back at the Putin Era as some kind of mythical Happy Days, Russia's version of the Ike Era.

It's the End of the Putin Era as We Know It...do you feel fine?

Rictor
10-31-2007, 10:36 PM
Wow. This is why I read the eXile. It makes ordinary life seem so damn interesting. And the crazy thing is that, given it's Russia we're talking about, it could all be true.

intelligenzija
11-01-2007, 12:04 AM
excellent read.. but frightening

Digimon
11-01-2007, 12:25 AM
I am watching Bastrykin. I cannot understand his role in all this, but I like the idea of investigation being independent from the prosecutor's office. I also like the idea that they are reopening the investigation into many cold cases, including the death of Yuri Shchekochikhin, Duma deputy and Novaya Gazeta reporter, whose death bed symptoms resemble the Litvenenko's.

Brute
12-02-2007, 04:55 AM
War Inside the Kremlin

Rivalries at the top threaten to tear Russia apart.

Balancing Act: If Putin goes, who will hold the place together?
By Owen Matthews and Anna Nemtsova | NEWSWEEK
Dec 10, 2007 Issue



No shots were fired a few weeks ago when AK-47-wielding members of two Russian police agencies faced off outside a suburban Moscow mansion—but it got uncomfortably close. Members of the Federal Drug Control Service (FSKN) challenged a squad from the Federal Security Service (FSB) that had been sent to arrest the FSKN's Lt. Gen. Aleksandr Bulbov. He wasn't home, though; another FSB team had intercepted him arriving at Moscow's Domodedovo airport. After a scuffle, Bulbov landed in jail, where he's still awaiting trial on extortion charges. Bulbov's lawyer insists his client is innocent. So does Bulbov's boss, FSKN chief Viktor Cherkesov (http://www.newsweek.com/related.aspx?subject=Viktor+Cherkesov). In an open letter after the arrest, Cherkesov called it part of "an internecine war within the security services"—a struggle between two powerful Kremlin (http://www.newsweek.com/related.aspx?subject=Moscow+Kremlin) factions. If unchecked, such feuds might "bring down the stability Russia (http://www.newsweek.com/related.aspx?subject=Russia) has won," leading to "chaos," Cherkesov warned.
Forget this week's elections for Russia's rubber-stamp Parliament. The country's real political contest, a brutal struggle for wealth and power, is elsewhere: in and around the Kremlin's executive offices. While Vladimir Putin (http://www.newsweek.com/related.aspx?subject=Vladimir+Putin) prepares to give up the presidency as the Constitution requires next March, when his second term expires, Russia's ruling clans are defending their interests at any cost and using Russia's patchwork of security services to carry out personal agendas.
The Cherkesov spat gives a rare glimpse into one of those feuds. His open letter suggested that the charges against Bulbov were payback for the FSKN's investigation of an import scam allegedly involving senior FSB officers. And Bulbov wasn't the only FSKN officer to suffer: Sergei Lomako and Konstantin Druzenko of the service's St. Petersburg branch died from lethal doses of radioactive poison soon after Bulbov's arrest. The feud, Cherkesov warned, could become a repeat of the "bankers' war" of the late 1990s, when Yeltsin-era oligarchs fought over the spoils of privatization, destroying what little faith Russians still had in their system.
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Putin's Russia looks very different from Yeltsin's—on the surface, at least. Former FSB Col. Gennady Gudkov, now a deputy in the Duma, the Russian Parliament's lower house, says the elite now is "far closer knit and far more cohesive" than it ever was under Yeltsin. The Putin regime's power brokers are a club of Kremlin bureaucrats, many of them with personal ties to the president and his hometown of St. Petersburg—and many of those former colleagues of his from the KGB.
Even so, says the Kremlin-connected analyst Stanislav Belkovsky, "Russia is much more of an oligarchy now than under Yeltsin." Unlike the Yeltsin-era oligarchs, Putin's new elite are bureaucrats, not businessmen. Each clan uses a key chunk of the state as a source of revenue and patronage—like the state-owned oil company Rosneft, controlled by Igor Sechin, Putin's deputy chief of staff, or Gazprom, headed by Dmitry Medvedev, the deputy prime minister. And each has its own law enforcers, which it uses to promote its private ends. As the FSB-FSKN feud has shown, only the president can keep their rivalries in check. "Putin has been controlling this tug of war," says Kremlin political adviser Vyacheslav Nikonov. "Nobody but Putin can provide the balance between the different Kremlin factions."
That's a job Putin probably won't be able to hand off in March. But how can he keep doing it? He could amend the Constitution and hold power indefinitely, if that was his wish. With his approval rating above 70 percent and his solid majority in Parliament, no one could likely stop him. But many believe Putin is strongly against the idea of becoming a dictator for life. "He is convinced that Russia cannot be run by a junta," says a former senior Kremlin official who doesn't want to be named discussing his ex-boss. "Likewise, he knows that his successor as president cannot be a puppet."

Putin needs a new political niche. One possibility: leader of the United Russia Party, whose candidate list he headed in this week's Duma races. As a substitute for an actual campaign, the Kremlin turned the election runup into a frenzy of Putin-worship. The focus on him helped keep people's minds off the clans' feuds—and averted any discussion of Russia's very real problems. The oil-powered economy may be soaring, but so is inflation, and labor unrest is breaking out. A pay strike recently shut down the Ford Motor Co. plant in Vsevolozhsk, near St. Petersburg, and roughly 1,500 teachers and nurses staged a protest outside Astrakhan's regional Parliament to demand better public-sector salaries. Resolving problems like these is likely to be a full-time job for the next president. That is, if he's not too busy breaking up fights among his bureaucrats and their private armies.





http://www.newsweek.com/id/73412

Brute
12-15-2007, 09:43 AM
Silovik Clan War Heats Up
December 14, 2007
The war (http://www.exile.ru/articles/detail.php?ARTICLE_ID=13442&IBLOCK_ID=35&phrase_id=8991)between Russia's two powerful "silovik" clans has taken a new turn, pitting one powerful judicial structure against the other.

According to the official newspaper Rossiiskaya Gazeta, the General Prosecutor's office has been conducting a "proverka" or audit of the new Investigative Committee (http://www.rg.ru/2007/12/14/proverka.html), which Putin set up in September to counterweight the prosecutor's power. The General Prosecutor is aligned with the silovik clan that includes Viktor Cherkessov's 40,000-strong anti-Narcotics army as well as the head of President Putin's personal security organ. This clan has been on the defensive for nearly three months now, since the Investigative Committee stripped the General Prosecutor of huge powers, thousands of employees, and most of its outstanding criminal investigations.

The Investigative Committee, headed (http://www.bastrykin.ru/)by an old classmate of Putin, is said to have fallen under the control of a rival silovik clan headed by the FSB chief and Rosneft head Igor Sechin. Within a month of its founding, the FSB clan employed their new judicial weapon, arresting top generals from rival Cherkessov's anti-Narcotics Agency, and knee-capping Putin's 'liberal" faction with the arrest of deputy finance minister Sergei Storchak by the Investigative Committee. The General Prosecutor was powerless to stop both of those arrests.
Some speculated that the arrest of Storchak was meant to stop Putin from possibly naming Kudrin as his successor; Putin's surprise naming of "liberal" Dmitry Medvedev to succeed him shows that the FSB clan's information was pretty close.
Now, the General Prosecutor is striking back. Last week, they began a three-week complete audit of the Investigative Committee. Also last week, they managed to get one of the charges against Storchak dropped, and they forced the Investigative Committee to allow finance minister Alexei Kudrin to visit (http://newsru.com/russia/14dec2007/meet.html)Storchak in jail, which he'd been barred from doing until Friday.
Now the General Prosecutor will have three weeks to pore over every single procedure, statistic, and activity of the Investigative Committee with the aim of "comparing" their work to the General Prosecutor's work in a comparable period.
Where is Putin in all of this? My guess is he's letting the two factions bleed each other weak, partly because getting involved would be like sticking your hand into a Mexican dog fight.

It's a ****ed up world indeed when a distinctly un-liberal army like Cherkessov's Clan becomes the only hope for "liberals" like Kudrin and perhaps Medvedev to ward off "neo-Soviets" like the FSB and Igor Sechin.
Medvedev may become the new president, but the battle for real power is in full swing. Expect plenty more surprises.
—Mark Ames

http://www.exile.ru/blog/detail.php?BLOG_ID=15243&AUTHOR_ID=

Brute
12-15-2007, 09:54 AM
Dmitry Medvedev & The Banker's Murder
By Mark Ames

So the Big Wait is over. Putin’s successor has been named: the softie-semi-liberal Dmitry Medvedev, the deputy prime minister of Russia and chairman of the natural gas behemoth Gazprom. The choice is sure to disappoint Western promoters of the idiotic “Russia-Gone-Stalinist” narrative that’s been falling apart over the past few weeks so fast that even The Economist has been forced to pull their heads out of their neo-Cold-War asses and acknowledge (http://www.economist.com/world/europe/displaystory.cfm?story_id=10268185), just in time, that reality here ain’t as simple as we’d like it to be.

The irony is obvious: the supposed Western-liberal Yeltsin named a KGB goon to replace him at the end of 1999, in a move that was even less democratic, and far more surprising, than Putin’s naming of Medvedev today. It was less democratic for the simple reason that Yeltsin was enormously unpopular when he named Putin to succeed him, and Yeltsin named Putin with only one goal in mind: to protect his corrupt ass after he stepped down, democracy and Russia be damned.
Today, Putin could have made a monkey his successor, to borrow a line Berezovsky once mistakenly used to describe how he’d created Putin in 1999. It’s not easy to fit his nomination of Medvedev into the facile neo-Stalinist narrative, but you can bet that some Western pundits will find a way.

In fact what naming Medvedev shows is something far more simple and humbling: Russians ain’t like us, as the War Nerd would say. (Incidentally, something that’s been bothering me, not sure how it fits in, but: Has anyone ever thought it a bit odd that Japan has been ruled by one party since we forced a “democracy” down their radiated throats sixty years ago? Just a thought…)
Now about the “liberal” label affixed to Medvedev, here's a tale that should make us question how useful it is. This past weekend a rather gruesome murder (http://www.themoscowtimes.com/stories/2007/12/10/003.html) took place which may be relevant to the Medvedev nomination. Oleg Zhukovsky was found hogtied, tortured and drowned in his elitny dacha swimming pool outside of Moscow. At first, officials from the General Prosecutor’s office officials claimed Zhukovsky, who headed VTB bank’s loan department to the Russian $15 billion lumber industry, had committed suicide. Then the new “Investigative Committee,” a rival law enforcement agency recently set up by Putin to counter the power of the Prosecutor’s office, came in and said that it was in fact murder. By Saturday, the Investigative Committee changed their story again and said that Zhukovsky had killed himself in a popular new suicide method: hogtying oneself and rolling into one’s swimming pool to make sure you can’t survive it. The struggle strongly suggests another front in the battle between siloviki faction (http://www.exile.ru/articles/detail.php?ARTICLE_ID=13442&IBLOCK_ID=35)s (http://www.exile.ru/articles/detail.php?ARTICLE_ID=15105&IBLOCK_ID=35#5047110335503949), as Western publications are just beginning to acknowledge (http://www.telegraph.co.uk/news/main.jhtml?xml=/news/2007/12/08/wrussia108.xml).


How does this relate to Medvedev? In 1993, Medvedev, working under Putin in the St. Petersburg city administration, was named to head (http://www.rferl.org/specials/russianelection/bio/medvedev.asp) the legal department for Ilim Pulp (http://www.ilimgroup.com/?p=history), today Russia’s largest timber and pulp company. Medvedev steered Ilim Pulp’s rise to dominance through various legal machinations, and was said to own a massive chunk of the company’s shares in 1999, when he moved to Moscow to join then-prime minister Putin’s government. At the time, there were big questions about how Ilim Pulp and its new companies in Bratsk and elsewhere were “privatized.” Those questions have since ceased; today, Ilim is the largest timber company in Russia. In October, American multinational giant International Paper announced that it was buying a 50% stake in Ilim Pulp (http://investor.internationalpaper.com/phoenix.zhtml?c=73062&p=irol-newsArticle&ID=920938&highlight=), worth hundreds of millions of dollars. Last year, when Ilim Pulp was being courted by foreign investors, Kommersant reported that Ilim Pulp had bought back 25% of its assets (http://www.kommersant.com/p716546/r_520/International_Paper_/) back from VTB bank in a deal blessed by the Kremlin.

If this web between Medvedev, Ilim Pulp and VTB Bank sounds confusing, then consider this: In May of this year, the hot muckraking Russian magazine New Times reported that according to Stanislav Belkovsky, one of Russia's top political analysts, Medvedev still has a "sizable stake" (http://compromat.ru/main/medvedev/a.htm) in Ilim Pulp. A stake that, if Beklkovsky is right, may have come in handy when International Paper bought into Ilim.

That’s information that someone might want to cover up. What better way than to whack VTB Bank’s timber industry banker, Oleg Zhukovsky. This might explain why the General Prosecutor and the Investigative Committee, each representing different factions of the siloviki, have been fighting to control the rights to Zhukovsky's tortured corpse, and the murder investigation. Some siloviks may not be happy with Medvedev’s nomination; some may be happy, and don't want any bad news to come out, the way so much fishy news has been getting leaked over the past two months.

If this sordid story reveals anything, it’s that the only way to grasp the current power-transfer is through Russian eyes. Trying to understand Medvedev and his significance through the liberal/Stalinist prism explains nothing; Dmitry Medvedev is neither liberal nor neo-Stalinist, but rather, Russian, the sort of Russian who was groomed in the chaotic and savage transition from perestroika through Putin's stabilization. That's a bit too morally complex for folks like Anne Applebaum, who still believes that Putin-The-Terrible stole her wallet (http://www.washingtonpost.com/wp-dyn/content/article/2007/07/23/AR2007072301362.html)from her Moscow hotel room. The naming of Medvedev in truth muddies the simple moral arithmetic. But to understand Medvedev's meaning is to attempt to understand Russia, and that supposes a lot from us outsiders—starting with our admission that we don’t get a single ****ing thing about this place.


—Mark Ames
http://www.exile.ru/articles/detail.php?ARTICLE_ID=15105&IBLOCK_ID=35


HOG-TIED FOR THE HOLIDAYS

http://www.exile.ru/legacy/images/dp-invest.gif http://www.exile.ru/legacy/images/dp-self.gif
When the body of a managing director at Russia's second largest bank turned up hogtied at the bottom of his empty pool in podmoskovie, Russia's finest initially thought: murder. Thankfully, they eventually came to their senses and questioned that diagnosis. It's not the job of the DP Bureau to get heavy into the heavy politics of why they did this. But boy, being connected with Medvedev's political reputation, heavy it is. What is the official justification? Radio Ekho Moskvy reports that members of the investigation committee now believe the evidence points to a technique that was "well-known in forensics but rarely used," known as "guaranteed self-destruction."
So, for all the naive folks who thought that maybe, just maybe, the death might have to do with Oleg Zhukovsky's connections to the timber industry, where he handled VTB's accounts, well, you're just stereotyping. Russia's not like that any more. No siree, not in this day and age! This was just a simple case of guaranteed self-destruction. There was even a note in which Zhukovsky supposedly wrote that no one was to blame to prove it.

The precise time of death has yet to be established, but the police are sure it happened sometime last Thursday at the 55-year-old Zhukovsky's luxury dacha in the Lesnaya Opushka subdivision in the Odintsovo district. He'd apparently been tortured before dying (also self-inflicted we assume), and investigators initially said that he may have died of a heart attack. But now they know better--it was clearly a case of "guaranteed self-destruction."
http://www.exile.ru/articles/detail.php?ARTICLE_ID=15305&IBLOCK_ID=35