TALLINN, Estonia (AP) — When President Vladimir Putin took power in 2000, he ruled the Russians, known to the outside world as the “oligarch,” with a ruthlessly amassed vast wealth. They were treated as beings no different than human beings. The origin of this word is “minority government.”
The term persisted long after Putin took power, expanding into general usage to refer to almost any Russian with significant wealth.
However, it is questionable how much political power Russia's super-rich currently wield.
A few hours after Putin sent troops to Ukraine A video conference Putin held in the Kremlin in February 2022 with top businessmen and entrepreneurs showed how power relations have changed. Putin simply told them they had no choice but to invade.
Despite the harsh consequences The tycoons had to enjoy the wealth that could be expected from the war. The power was his, not theirs.
the original oligarchy
After the collapse of the Soviet Union, as government control was loosened under Mikhail Gorbachev's “perestroika” reform policy, savvy businessmen who had already begun building their businesses took advantage of the privatization of state-run industries to expand their quickly established a wealth of assets.
Boris Berezovsky, a fast-talking mathematician, was a typical example of this breed, becoming the biggest dealer for Russia's largest car manufacturer and managing to buy vehicles at a loss to the manufacturer. He took over the management of the Sibneft oil company, the national airline Aeroflot, and acquired control of Russia's largest television channel, then known as ORT.
Less glamorous than Berezovsky, notable figures of the time included media magnate Vladimir Gusinsky, whose NTV channel gave him great influence, and oil magnates Mikhail Khodorkovsky and Roman Abramovich.
President Putin's New Deal
When Putin first took office, he was well aware of the widespread resentment felt by ordinary Russians toward the super-rich, who are thriving while millions of others struggle with economic changes. In the summer of 2000, President Putin met with about 20 people believed to be heads of the oligarchs in the Kremlin. The meeting was adjourned, but according to later reports, he made a stern and clear promise: “If you stay out of politics, your wealth will not be harmed.''
“There was, and continues to be, a guarantee that any wealth accumulated before a president takes office will be kept by its owner,” Aleksandra Prokopenko, an analyst at the Carnegie Endowment for International Peace, wrote in a commentary earlier this year. Ta. “What President Putin values above all else is loyalty.”
Berezovsky had already begun criticizing President Putin at that time. Within months he left Russia for Britain, where he was granted asylum in 2003. Ten years later, he was found dead in his home. A controversial post-mortem examination concluded that he appeared to have hanged himself.
Mr. Gusinsky, who had criticized and even lampooned Mr. Putin in the media, was taken to prison during an investigation into misappropriation of funds. Within weeks, he agreed to sell his shares to Russia's state-run natural gas monopoly and left the country.
Khodorkovsky, considered Russia's richest man at the time, remained active even longer, founding the reformist Open Society and developing political ambitions. But he was arrested in 2003 when special forces stormed his private plane and spent 10 years in prison after being convicted of tax evasion and embezzlement before being pardoned by President Putin and leaving Russia.
President Putin has allowed Mikhail Prokhorov, a metals billionaire, to run against him in the 2012 presidential election, but the bid is an attempt by the Kremlin to give Russia an impression of true political pluralism. It was widely seen as a red herring for aid.
The future of oligarchy
Despite their assets taking a hit as a result of the Ukraine war, most of Russia's super-wealthy have remained silent about the conflict or offered only mild and superficial criticism.
Banking and brewing entrepreneur Oleg Tinkov was a rare exception, denouncing the war and calling its supporters “stupid.” He will leave the country at the end of 2022 and subsequently renounced his nationality.
Mikhail Fridman, co-founder of Russia's largest private bank, said the war was a tragedy and the “bloodshed” must end. He is an Israeli citizen and was living in the UK, but reportedly returned to Moscow due to the outbreak of fighting between Israel and Hamas.
“Even as the elites complain, they continue to demonstrate their loyalty,” Prokopenko wrote.
But she and other analysts argue that loyalty alone is not enough for Putin, and that by distributing assets the state confiscates from foreign companies leaving Russia and nullifying state power, Putin This suggests that he may be looking to create a new cadre of billionaires who will benefit from the Privatization since the 1990s.
Nikolai Petrov, an analyst at Britain's Royal Institute of International Affairs, said that Russia is pursuing de-privatization efforts “aimed at redistributing wealth to a new generation of less powerful individuals and strengthening the president's own position.” I wrote that I am working on it.
He said: “A new group of quasi-proprietary state oligarchy is emerging, where wealth and control are redistributed from the 'old aristocracy' to the new aristocracy.”
