After the fourth congress of the Chamber of Commerce and Industry, President Putin warned that it will be more than difficult to bring back the money Russia has lost through capital flight). The abruptness of the president may have two causes: either a feature of the president's personal style or acuteness of the issue. However, the president was not talking to Chechen separatists; and it is very difficult to imagine George Bush speaking to Texas oil magnates or Chicago stockbrokers so abruptly. It is sad that sometimes the language of the Russian authorities is no more complicated than a sergeant's shout.
However, apparently the cause of the intrigue is different. It is enough to confront three different events of the past week which seem not to be connected at all. Beside the aforementioned unexpected visit and speech of the president on the Fourth Congress of the Chamber of Commerce and Industry, there were two media reports about some leading figures in Russian business: Mikhail Khodorkovsky, CEO of YUKOS and, according to Forbes magazine, the richest Russian entrepreneur; and Sergey Pugachev, former CEO of Mezhprombank and now senator for the Tuva Republic.
On June 19 the official website of the Menatep group published information on the structure of capital of the company and shares belonging to individuals.
For the first time in the history of Russian tycoons, Khodorkovsky and his associates openly told the public who is billionaire and multimillionaire. Greatest shareholder of Menatep and simultaneously head of YUKOS Mikhail Khodorkovsky controls $7.63 billion capital. It is an unprecedented event, as until recently people could only "guess about the amount of personal or corporative wealth, use rumors and informational leakages in the course of compromising wars, and gasp once a year reading Forbes ratings." If other tycoons follow the example of the YUKOS head, soon the tax police and "black PR" will be unemployed, and the public will be no longer able to entertain compromising wars.
However, there are two circumstances, which spoil the favorable impression.
First, it is a usually business necessity. The company needs this transparence in order to enter largest stock exchanges of the world.
However, a more important than requirements of the ADR listing circumstance encouraged YUKOS head and his associates to make such an impressive move. The will of the Kremlin could just as well provoke them to do this, as the former is currently trying to cardinally change its relations with business community of Russia. As is known, it is always easier for a transparent business to negotiate or argue with the power....
Another effective media effort came a day before YUKOS's move: it was a scandalous statement in the Le Monde newspaper concerning former banker and current senator Sergey Pugachev. According to the paper, the French authorities suspect Pugachev and his Mezhprombank in money laundering through French Monaco accounts and firms. An instituted preliminary investigation has already proved vast multimillion deposits of the banker and structures connected with him on the Azure Shore and in Monaco.
It is very indicative that next day after publications in the French paper, President Vladimir Putin personally met with Sergey Pugachev. Although, the president and former banker have known each other for years, since Vladimir Putin worked in Department of Presidential Affairs, it hardly was the reason for a long, two-hour talk. According to official data, the president and the senator discussed the issue of reinvesting capital taken abroad in the Russian economy.
From the standpoint of formed economic relations in the country, turn of financial currents from "out" to "in" and repatriation of financial means more resembles a strategic project or a Soviet Utopia planning to turn northern rivers back. It seems to be unnatural, too difficult to implement, and costs too much effort. Especially, if such a project does not change the nature of Russian business and is implemented exclusively at the expense of the administrative resource. A strange coincidence of the three events leads to thought that it is another intrigue.
First, the president tried to convince Mr. Pugachev to return the capital to the historical motherland and, probably, to try to convince other tycoons to do the same.
Second, on the one hand, all the tycoons were was sternly warned at the congress by the president; on the other hand, the president calmed them down saying that none of those who return their capital to Russia will be asked where this money is from.
Finally, the unexpected "opening" of Khodorkovsky and Co. at this very moment. Naturally, it may mean whatever for him and his business. On the one hand, Mikhail Khodorkovsky as a member of the Russian Union of Industrialists and Entrepreneurs was convinced to "set an example". On the other hand, head of companies registered in offshore Gibraltar could prefer openness and transparency of his business despite the obligatory tax burden as a guarantee of independence from anyone's, including administrative, will.
In these terms, the fate of the transparent oil magnate is much luckier than the lot of the former banker, who is currently under a preliminary investigation. Of course, Russia will not allow the French police to find anything, as it happened in Switzerland, but this may allow to keep the Tuva Senator under permanent control.
However, it is only possible to guess at the real intentions of all participants in this startling intrigue. (Translated by Arina Yevtikhova )