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Oligarchs as Nation's Saviors? Berezovsky Justifies Himself

Published: October 20, 2000 (Issue # 613)


A GROUP of House Republicans in the United States has assailed the Clinton administration for supporting Russia's former president, Boris Yeltsin, whom they accuse of fostering corruption and allowing undue influence to big business during his time in office. Similar views are expressed by some reviewers of Yeltsin's memoirs, just published.

Unfortunately, these people neglect the context of Russian history. As a participant in a major business privatization deal of that period - for which I have been labeled an "oligarch" - I would like to put what happened in Russia in historical perspective.

When the Bolsheviks abolished private property in 1917, they put all expropriated wealth under the management of two organizations that were to become pillars of Soviet totalitarianism: the Communist Party and the secret police (eventually known as the KGB). To accomplish this end, the new managers physically eliminated the previous owners - tens of millions of them.

Three-quarters of a century later, in just a few years, Yeltsin carried out the reverse of the Bolshevik Revolution - and he did so bloodlessly and efficiently. By 1998, 75 percent of the property had been transferred to private hands.

Critics say that privatization was unfair - that the "oligarchs" got major assets for a fraction of their real value. To put this claim in context, I recall the events of the pivotal year 1996, which began with Communists having a majority in the State Duma and Yeltsin's popularity slipping below 3 percent while that of his Communist rival, Gennady Zyuganov, rose to nearly 30 percent.

It was at that time that Yeltsin and Anatoly Chubais decided to sell off a great many state assets quickly so that it would be difficult for the Communists to renationalize private property after Zyuganov's expected victory in the race for president. This was the background for my decision to bid for the oil company Sibneft.

For the auction, my partners and I needed at least $100 million but had only $60 million on hand. So we invited foreign investors - in the United States, Western Europe and Japan - to participate in our bid. No one gave us a penny, and George Soros, who always understood Russia better than others, told me: "The risk is too high. The Communists will take everything back. Russia is slipping into a black hole, Boris. Don't be a fool, take your family and get out, before it's too late."

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Sunday, Apr. 20


Celebrate Easter at Pavlovsk during the Easter Fair that begins today and continues through next Sunday. Visitors will have the chance to paint Easter eggs and children can take part in games as well as help decorate a tree in honor of Christianity’s holiest day.


Today is one of the final days to see the exhibit Cacti — Children of the Sun at the Peter the Great Botanical Garden. Starting Apr. 17, budding botanists will marvel at the variety and beauty of the desert’s most iconic plant.


Monday, Apr. 21


Improve your grasp of Neruda, Bolano and Marquez at TrueDA’s Beginners Spanish Lesson this evening at their location on the Petrograd Side. An experienced teacher will be on hand to help all attendees better understand the intricacies of the language and improve their accent.


Tuesday, Apr. 22


SPIBA’s Breakfast with the Director event series continues as the association welcomes Andrei Barannikov, general director of SPN Communications, to the Anna Pavlova Hall of the Angleterre Hotel this morning at 9 a.m. Attendees must confirm their participation by Apr. 21.


The AmCham Environment, Health and Safety Committee Meeting is scheduled to begin at 9 a.m. this morning in the their St. Petersburg office.