[lbo-talk] Gorby on l'Affaire Yukos

Chris Doss itschris13 at hotmail.com
Tue Nov 11 08:47:51 PST 2003


#1 TITLE: PRESS CONFERENCE WITH MIKHAIL GORBACHEV

[AIF PRESS CENTER, 12:00, NOVEMBER 6, 2003] SOURCE: FEDERAL NEWS SERVICE (http://www.fednews.ru/)

Moderator: Yes, please, Mikhail Sergeyevich.

Gorbachev: Good day.

Moderator: Good day, distinguished colleagues, we begin our press conference. The guest of Argumenty i Fakty today is president of Gorbachev Foundation -- Mikhail Sergeyevich Gorbachev. You know from the announcements that the topic of the press conference is political processes in Russia: aggravations in the fall.

Q: What is your attitude towards the Yukos affair? What economic and political reverberations can it have for our country? And can the current situation be described as a crisis? And second - -

Gorbachev: Wait a minute. I will turn 73 soon and I can't remember so many questions at once.

What was your second question?

Q: Your attitude toward the nomination of Mikhail Khodorkovsky for president?

Gorbachev: If authorities had solved the question of the rational in the interests of the nation, the question of natural rent and all related issues on time, this case might not have come round.

What happened to Khodorkovsky and the company that I thought was the most transparent and advanced one and capable of increasing its business activities -- I still don't have enough information to assess what is happening in essence. I only said when I was asked, I think it was Interfax, that it was very important in such cases to act in accordance with the procedures laid out in relevant codes and laws in order not to infringe upon the rights of the individual or cause economic and political damage to business and the country.

I have heard and read statements made by the new chief of staff of the presidential administration, Mr Medvedev, and I could see that even words matched. That's the point. But I can't say for sure. If they say that $1 billion was not paid to the budget, then you know who we are dealing with. People who use the national wealth, what has been created by generations of people -- we haven't worked things out with the natural rent, but look at what they are doing with their dividends. They are simply squandering them away. And this is a totally different approach. If this is true, this is a crime and it must be punished.

You may know that the biggest crime in America is tax evasion. And it's the same in many other countries. So we have to distinguish these things. This is why I want this case to be investigated by law, showing respect for the individual and taking into account our interests. If there is public understanding, primarily owing to the press that has raised this question and given it so much attention, sometimes maybe overdoing things, but still --

Moderator: And sometimes going into hysterics...

Gorbachev: You know, in our country if you don't overdo, you may never learn about it. So we overdo it both ways. It's in the blood.

Moderator: The second question was whether the situation may be called a crisis.

Gorbachev: Well, is it really a crisis? America has 20 companies of a larger size, so to say, and they sorted it out and those who deserved it were put in jail, on the basis of judicial decisions. Those who had done less harm, those who had settled it and paid for it and repented. I think this is the road that must be followed in our country as well. There is nothing here. But it is important for me that the President recently, even before flying to Italy, said it and I could see that he was even being nervous, that they want to tie it all up to indicate that everything is being done upon his orders.

I don't think the President doesn't know but that this is done "upon orders", I don't think so.

Moderator: (Inaudible)... concerning nominating Khodorkovsky ...?

Gorbachev: I will finish my thought. There will be no deprivatization, we will be following the road of developing a market economy. We the social democrats add that we want a market economy geared to social needs. I think this is how it is going to be. In the final analysis, I don't think that we are in for some upheavals, coups and other things that we had ample opportunity to be exposed to of late. One must decide courageously, according to the law, all questions. This is the most difficult thing but this is so. Even all of us, we want the court to decide, the law enforcement authorities acting under the law, but always, when something arises, we immediately begin to express displeasure with the government, the premier and so on. This is not something that should be done. Let them draft for us the policy that is needed. And as to these things, they must be decided by the law enforcement and judicial authorities.

You will say that Gorbachev was sitting here and was throwing the wool over our eyes, this is as if we don't know the nature of the country in which we live. Yes, I do take this into account, and nevertheless such a division, a firm division and sticking to this line -- I think that only this approach can, step by step, take us on to the really functioning democracy that we need. This process is not simple. It is not simple to such an extent that a successful prime minister (inaudible)... leaving his post, suddenly said and the quotation was given by Kommersant to the effect that "one has to sort it out, it may be different and democracy can be different and that democracy should take into account the real questions of the emergence of democratic institutions, and one should also take into account the real historical and other context and specific features of each particular country."

That's for sure. In the country we live in, we must take indeed everything into account. Up to perestroika we never had any democracy, we have lived in serfdom and we know for how many years, we have lived under the communist model, in a totalitarian society and we know for how many years. Whole generations were molded. Everything is simple, one can destroy a factory and build it anew and one needs 2-3-4 years for this at most. I mean the largest enterprises. But to mold something in the head, to mold understanding of a different kind, one that permits democracy to function... that is why many questions arise in this connection. But it is important for me that we should understand this, understand that in the state of transition in which we are now, we still have to do many things in order to be able to treat ourselves as quite a real democratic society.

Moderator: Now concerning the nomination of Khodorkovsky to run for presidency.

Gorbachev: Well, it is his business. If he is not imprisoned in the first place. Secondly, after all this, if he decides to ... I recently met with him, already when Lebedev was in prison, put under arrest. And we talked. I know Khodorkovsky and he even reminded me: "Do you remember that you met with us?" Because these are people from the Young Communist League who went into that youth business. As President of the country I met with them and I supported that movement. So, it is sort of a case of old friends. I think he is the most intelligent person. And he behaves himself quite cleverly. And now in the interests of the company he has abandoned it in order to probably keep the license for the use of natural resources. It is hard to say what he is thinking but he is an experienced person. But it is difficult for the oligarchs to count on getting into the presidency in this country. It may cost them (inaudible)... So, let them better cooperate with society and the state.

Moderator: Next question, please.

Q: (Inaudible).

Gorbachev: Overall, the name of Gorbachev has become very much widespread and to tell you honestly, I didn't object because this was a kind of public relations free of charge. At some point it had gone so far that they brought me a bottle of Stolichnaya made in Nizhny Novgorod, with my colored portrait on the label. Very handsome. And all this was exported. Outrageous. I will never allow my name to be used by cigarette and alcohol manufacturers.

In this case the brand belongs to the Fund. If they reach an agreement with the Fund, we may allow it to be used in the names of ecologically clean products in order to encourage something that is useful and important. This can be done, and I don't think there is something wrong with that. Especially since it has been arbitrarily any way, but if this is properly regulated, it may produce a certain effect.

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