Russian Roulette: Russia's Economy in Putin's Era — John Shaqi
Russian Roulette: Russia's Economy in Putin's EraVaknin, Samuel
History
Russian Roulette: Russia's Economy in Putin's Era
Vaknin, Samuel
Putin, Vladimir Vladimirovich, 1952-; Russia (Federation) -- Politics and government -- 1991-
The person in charge of the funds in 1998 was none other than Mikhail
Kasyanov, Russia's current Prime Minister - at the time, Deputy
Minister of Finance for External Debt. His signature on all foreign
exchange transactions - even those handled by the central bank - was
mandatory. In July 2000, he was flatly accused by the Italian daily, La
Reppublica, of authorizing the diversion of the disputed funds.
Following public charges made by US Treasury Secretary Robert Rubin as
early as March 1999, both Russian and American media delved deeply over
the years into the affair. Communist Duma Deputy Viktor Ilyukhin jumped
on the bandwagon citing an obscure "trustworthy foreign source" to
substantiate his indictment of Kremlin cronies and oligarchs contained
in an open letter to the Prosecutor General, Yuri Skuratov.
The money trail from the Federal Reserve Bank of New York to Swiss and
German subsidiaries of the Russian central Bank was comprehensively
reconstructed. Still, the former Chairman of the central bank, Sergei
Dubinin, called Ilyukhin's allegations and the ensuing Swiss
investigations - "a black PR campaign ... a lie."
Others pointed to an outlandish coincidence: the ruble collapsed twice
in Russia's post-Communist annals. Once, in 1994, when Dubinin was
Minister of Finance and was forced to resign. The second time was in
1998, when Dubinin was governor of the central bank and was, again,
ousted.
Dubinin himself seems to be unable to make up his mind. In one
interview he says that IMF funds were used to prop up the ruble - in
others, that they went into "the national pot" (i.e., the Ministry of
Finance, to cover a budgetary shortfall).
The Chairman of the Federation Council at the time, Yegor Stroev,
appointed an investigative committee in 1999. Its report remains
classified but Stroev confirmed that IMF funds were embezzled in the
wake of the 1998 forced devaluation of the ruble.
This conclusion was weakly disowned by Eleonora Mitrofanova, an auditor
within the Duma's Audit Chamber who said that they discovered nothing
"strictly illegal" - though, incongruously, she accused the central
bank of suppressing the Chamber's damning report. The Chairman of the
Chamber of Accounts, Khachim Karmokov, quoted by PwC, said that "the
audits performed by the Chamber revealed no serious procedural breaches
in the bank's performance."
But Nikolai Gonchar, a Duma Deputy and member of its Budget Committee,
came close to branding both as liars when he said that he read a copy
of the Audit Chamber report and that it found that central bank funds
were siphoned off to commercial accounts in foreign banks.
Public-domain text, read in full here on John Shaqi.
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