← Autodidact Archive · Original Dissent · Walter Yannis
Thread ID: 11594 | Posts: 5 | Started: 2003-12-24
2003-12-24 08:31 | User Profile
This appeared in the 24 December 2003 issue of the [URL=http://www.moscowtimes.ru/stories/2003/12/24/001.html]Moscow Times[/URL] . It looks like Putin may actually challenge the 1996 loans-for-shares swindle (perhaps the biggest mass theft in history).
I think that Chubais is next. See [URL=http://www.moscowtimes.ru/stories/2003/12/24/042.html]this article [/URL] also appearing in the 24 December 2003 issue of the Moscow Times describing Chubais as the most hated man in Russia - and Putin as the most admired.
Walter
By Alla Startseva Staff Writer
Alexander Natruskin / AP
President Vladimir Putin on Tuesday asked big business to help the state resolve the country's social problems and threatened to undo fraudulent privatizations -- indicating for the first time that the investigation into Russia's richest man, Mikhail Khodorkovsky, might not be isolated and could spark renationalizations.
Putin, at a meeting with businessmen at the Russian Chamber of Commerce, confirmed earlier statements that the government doesn't plan a massive revision of privatization results but added that he was not referring to those that "did not observe the law."
He didn't name names, but he gave notice to those involved that they had better watch out.
"I keep hearing here and there that the laws were complicated and that it was impossible to observe them. Yes, the laws were complex and knotty, but it was quite possible to respect them," Putin said.
"If five, seven or 10 people broke the law, that doesn't mean others did the same," he said.
"Those who were involved in deliberate fraud" should not enjoy more favorable conditions than those who obeyed the law and "did right," he said. "The latter may not have earned as much money, but now they sleep soundly."
His comments came as a court extended the detention of Yukos founder Khodorkovsky, who is accused of fraud and tax evasion in a 1990s privatization. (Story, Page 5.)
Putin said big business must help the government solve the country's social problems and that he was looking for ways to raise taxes on oil profits.
"Business cannot and must not avoid resolving social problems," Putin said.
Those problems include the development of small and medium-sized business as well as health issues, the environment and labor rights, he said.
"Our collaboration in this should become useful for everyone. There is enough work in the social sphere for everyone."
Putin also said the government is considering how to redistribute oil company windfalls and that he wants representatives of the business community to participate in making the decision.
"One of the mechanisms would be an export duty, another would be a tax on the extraction of natural resources," he said.
However, these mechanisms are "pure anti-corruption" and may be unfair when applied to oil companies working on low-profit wells, he added.
Last week, Putin said the government should tax oil fields based on their individual characteristics rather than through the existing flat-rate system that encourages companies to increase extraction at less productive wells.
Vedomosti reported Tuesday that some government officials are interpreting Putin's remarks as a direct order and that the Economic Development and Trade Ministry has drafted a new tax aimed at forcing oil companies to boost production by making them pay almost all of their profits into the federal budget.
Putin was invited to Tuesday's meeting to discuss ties between the state and business.
Yevgeny Primakov, the head of the Russian Chamber of Commerce and, like Putin, a former spymaster, supported Putin's call Tuesday, saying politically stability "may become an illusion" if nothing is done to tackle poverty.
"It's a question of life and death for businessmen to have political stability in the country," he said.
After the meeting, the chamber released a statement calling on all businesses "to fully share with the government the responsibility for the social and economic situation in Russia."
The Russian Union of Industrialists and Entrepreneurs, the lobbying group representing most of the oligarchs, had no immediate comment.
The Kremlin has cowed big business by putting Khodorkovsky in jail and questioning the legality of past privatization deals, said Roland Nash, chief equity strategist at Renaissance Capital.
Putin's threats Tuesday are part of a new policy to pressure business into shouldering the responsibility for social reforms, he said.
"This is a very big stick," Nash said. "Putin is forcing businessmen to support a social contract dictated by the Kremlin."
Yevgeny Gavrilenkov, chief economist at Troika Dialog, warned that it might be dangerous for the government to only wield "sticks."
"Business may become inefficient and stop making long-term business plans," he said.
Gavrilenkov said the most transparent and effective way to resolve the country's social problems would be to impose a special tax to finance social programs.
"It is unlikely that companies will be as efficient in resolving social problems as they are their own business," Gavrilenkov said. "Everyone should tend to his own business."
Vladimir Pribylovsky, head of the Panorama Information and Research Center, said the government would have to be careful in deciding how businesses pay for social reforms to make sure the money "does not go into the pockets of state officials again."
Putin on Tuesday supported a suggestion by Primakov to hold a special meeting of businessmen and Federation Council senators.
"I will discuss this idea with the governors and think about how to formulate the topic, as the issue of the state, business and society or in a wider way, such as the social responsibility of business," Putin said.
Staff Writer Catherine Belton contributed to this report.
2003-12-24 11:19 | User Profile
I can't wait to hear our own beloved neo-cons squeeeeeeel like piggies when this comes down.
You gotta love it!
Walter
2003-12-24 14:42 | User Profile
Walter,
Merry Christmas to you and everyone else here.
This appears to be a very nice Christmas present from Putin. For these folks though...
The Russian Union of Industrialists and Entrepreneurs, the lobbying group representing most of the oligarchs, (Jews and Plutocrats) had no immediate comment.
A nice, big lump of coal for them!
2003-12-25 01:00 | User Profile
[QUOTE=Sertorius]Walter,
Merry Christmas to you and everyone else here.
This appears to be a very nice Christmas present from Putin. For these folks though...
A nice, big lump of coal for them![/QUOTE]
I don't know enough about Putin to comment on some areas - BUT - say things continue along these lines. How long do any of you think it will be before there is some type of "physical" attack on Putin? Maybe there won't be, but I wouldn't think it's out of the realm of possibility. It's also possible the fiends are between a rock and a hard place, and that type of action would only serve to further reveal their true "character", motives, etc. You can be sure the press in the West is gearing up for a big move on Putin for '04. They still have the Presidential election in the US to be concerned with, but Putin's moves, so far, seem to be the first small steps in a an attempt to choke off the chosenites and their allies. If any of you folks knowledgeable on Russian affairs care to chime in and inform the ignorant like myself...
2003-12-25 08:31 | User Profile
[QUOTE=Roy Batty]I don't know enough about Putin to comment on some areas - BUT - say things continue along these lines. How long do any of you think it will be before there is some type of "physical" attack on Putin? Maybe there won't be, but I wouldn't think it's out of the realm of possibility. [/QUOTE]
Great question. I of course have no idea.
I would point out that Russia is a big, very powerful country, and even the Tribe wouldn't want to pi$$ off the Russians too bad.
The ethnic nature of this conflict is so obvious, that our media should get Oscars for their brilliant acting in successfully ignoring it.
Amazing.
Merry Christmas!
Walter