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 IMF, when apprised of the possible range of FIMACO activities,
informed the Russian authorities that it would not resume lending to
Russia until a report on these activities was available for review by
the IMF and corrective actions had been agreed as needed ... I would
add that what the IMF objected to in FIMACO's operations extends well
beyond the misrepresentation of Russia's international reserves in
mid-1996 and includes several other instances where transactions
through it had resulted in a misleading representation of the reserves
and of monetary and exchange policies. These include loans to Russian
commercial banks and investments in the GKO market."
No one accepted - or accepts - the IMF's convoluted post-facto
"clarifications" at face value. Nor was Dubinin's tortured sophistry -
IMF funds cease to be IMF funds when they are transferred from the
Ministry of Finance to the central bank - countenanced.
Even the compromised office of the Russian Prosecutor-General urged
Russian officials, as late as July 2000, to re-open the investigation
regarding the diversion of the funds. The IMF dismissed this sudden
burst of rectitude as the rehashing of old stories. But Western
officials - interviews by Radio Free Europe/Radio Liberty - begged to
differ.
Yuri Skuratov, the former Prosecutor-General, ousted for undue
diligence, wrote in a book he published two years ago, that only c.
$500 million of the $4.8 were ever used to stabilize the ruble. Even
George Bush Jr., when still a presidential candidate accused Russia's
former Prime Minister Viktor Chernomyrdin of complicity in embezzling
IMF funds. Chernomyrdin threatened to sue.
The rot may run even deeper. The Geneva daily "Le Temps", which has
been following the affair relentlessly, accused, two years ago, Roman
Abramovich, a Yeltsin-era oligarch and a member of the board of
directors of Sibneft, of colluding with Runicom, Sibneft's trading arm,
to misappropriate IMF funds. Swiss prosecutors raided Runicom's offices
just one day after Russian Tax Police raided Sibneft's Moscow
headquarters.
Absconding with IMF funds seemed to have been a pattern of behavior
during Yeltsin's venal regime. The columnist Bradley Cook recounts how
Aldrich Ames, the mole within the CIA, "was told by his Russian control
officer during their last meeting, in November 1993, that the $130,000
in fresh $100 bills that he was being bribed with had come directly
from IMF loans." Venyamin Sokolov, who headed the Audit Chamber prior
to Sergei Stepashin, informed the US Senate of $2 billion that
evaporated from the coffers of the central bank in 1995.
Even the IMF reluctantly admits:
Public-domain text, read in full here on John Shaqi.
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