Wednesday, August 04, 2004

The Russian Oligarchs and their takeover of the state: "The 'oligarchs' are a tiny group of entrepreneurs who exploited the disintegration of the Soviet system to loot the treasures of the state and to amass plunder amounting to hundreds of billions of dollars. In order to safeguard the perpetuation of their business, they took control of the state. Six out of the seven are Jews. In popular parlance they are called 'oligarchs'--from the Greek word meaning 'rule of the few'.

"In the first years of post-Soviet Russian capitalism they were the bold and nimble ones who knew how to exploit the economic anarchy in order to acquire enormous possessions for a hundredth or a thousandth of their value: oil, natural gas, nickel and other minerals. They used every possible trick, including cheating, bribery and murder. Every one of them had a small private army. In the course of the series they are proud to tell in great detail how they did it. But the most intriguing part of the series recounts the way they took control of the political apparatus. After a period of fighting each other, they decided that it would be more profitable for them to cooperate in order to take over the state.

"At the time, President Boris Yeltsin was in a steep decline. On the eve of the new elections for the presidency, his rating in public opinion polls stood at 4%. He was an alcoholic with a severe heart disease, working about two hours a day. The state was, in practice, ruled by his bodyguard and his daughter; corruption was the order of the day. The oligarchs decided to take power through him. They had almost unlimited funds, control of all TV channels and most of the other media. They put all these at the disposal of Yeltsin's reelection campaign, denying his opponents even one minute of TV time and pouring huge sums of money into the effort. (The series omits an interesting detail: they secretly brought over the most outstanding American election experts and copywriters, who applied methods previously unknown in Russia.)

"The campaign bore fruit: Yeltsin was indeed reelected. On the very same day he had another heart attack and spent the rest of his term in hospital. In practice, the oligarchs ruled Russia. One of them, Boris Berezovsky, appointed himself Prime Minister. There was a minor scandal when it became known that he (like most of the oligarchs) had acquired Israeli citizenship, but he gave up his Israeli passport and everything was in order again.

"By the way, Berezovsky boasts that he caused the war in Chechnya, in which tens of thousands have been killed and a whole country devastated. He was interested in the mineral resources and a prospective pipeline there. In order to achieve this he put an end to the peace agreement that gave the country some kind of independence. The oligarchs dismissed and destroyed Alexander Lebed, the popular general who engineered the agreement, and the war has been going on since then. In the end, there was a reaction: Vladimir Putin, the taciturn and tough ex-KGB operative, assumed power, took control of the media, put one of the oligarchs (Mikhail Khodorkovsky) in prison, caused the others to flee (Berezovsky is in England, Vladimir Gusinsky is in Israel, another, Mikhail Chernoy, is assumed to be hiding here.)".

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