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New Siloviki Customs

Published: June 27, 2006 (Issue # 1181)

When Prosecutor General Vladimir Ustinov was dismissed on June 1, some argued he had been too aggressive in his campaign against corruption, others that he had been too soft. But the reason for Ustinovs resignation was mundane. President Vladimir Putin had selected First Deputy Prime Minister Dmitry Medvedev as his successor, but the siloviki clan led by Ustinov and Igor Sechin, the presidential administration deputy chief of staff, decided that Ustinov was the man for the job. Ustinov was pushed out of his job because his clan had become too powerful.

Last week, Sergei Zuyev, owner of Russias largest furniture retailers, Tri Kita and Grand, was arrested on charges of tax evasion. Its a sign of the times. It began as an ordinary turf war between Mikhail Vanin, who was customs chief until mid-2004, and the man once expected to replace him, Yury Zaostrovtsev, head of the Federal Security Services economic security department.

In an attempt to hold on to his job, Vanin demanded the companies involved in smuggling furniture into the country for Tri Kita double what they were paying the customs service to legalize their shipments. But when his agents approached the companies, they got the brushoff. Vanins boys figured that Zaostrovtsev was backing the smugglers. They opened a criminal investigation and sold the confiscated furniture for a song to their own companies.

What happened next was something else. Interior Ministry investigator Pavel Zaitsev, who headed the original case against Zuyev, was put on trial for abuse of office. Sergei Pereverzev, Zuyevs former business partner and a witness in the case, was shot dead in an apparent contract hit. State Duma Deputy and journalist Yury Shchekochikhin, who was looking into the Tri Kita affair, died in a suspected poisoning. Moscow City Court Judge Olga Kudeshkina, who acquitted Zaitsev, lost her job.

And Putin knew everything. He even appointed his personal investigator, Vladimir Loskutov, to work on the case, which already involved a dead witness, a poisoned Duma deputy and a jailed investigator. So what happened? Not much. Nearly everyone who pressured the Prosecutor Generals Office to close its original probe into Tri Kita in July 2002 for lack of evidence was also a player in the assault on Yukos.

Now the case against Tri Kita has been reopened. Some have even suggested that Ustinovs ouster was related to the case. As if Loskutov, after four years of investigative work, finally discovered the truth and reported to the president.

The Tri Kita case is extremely significant, because the words Kremlin and murder have rarely been found in such close proximity. But in terms of Kremlin infighting, Tri Kita is nothing out of the ordinary. In May, a Moscow court banned all operations and trading in preferred shares of pipeline monopoly Transneft, citing an ongoing investigation. Heads rolled in the corruption-ridden Federal Customs Service, and the tax authorities went after state-owned long-distance provider Rostelecom.

The renewed investigation into Tri Kita was not an excuse to get rid of siloviki associated with the case. It is indicative of the changing situation in this country. The so-called power vertical has been completed, and now those who built it are being purged. The original Tri Kita case posed a threat to the very foundation of the power vertical. The new case is just business as usual.

Its all about business. Why should the new boys in charge of customs leave anything for their predecessors? Tri Kita is even better than Yukos in this regard. After all, whos going to shed a tear if people like Zuyev are locked up?

Yulia Latynina hosts a political talk show on Ekho Moskvy radio.



Wednesday, Oct. 22

English teachers can expect to receive a few useful pointers today from Evgeny Kalashnikov, the British Council regional teacher, during the EFL Seminar this afternoon hosted by the British Book Center. The topic of todays seminar is Grammar Practice.

Young Petersburgers will get the chance to jumpstart their careers at Professional Growth, a job fair and forum featuring more than 40 major Russian and international companies vying for potential candidates for future positions. The forum not only is a chance to network but also to learn more about the modern business world and to understand what it takes to get the job you want.

Thursday, Oct. 23

AmChams Public Relations Committee meeting is scheduled to meet this morning at 9 a.m. in their office in the New St. Isaac Office Center.

Sportsmen get their chance to stock up on all kinds of gear at the Hunting and Fishing 2014 exhibition starting today at Lenexpo. Everything from rods and reels to boats, motorcycles and equipment for underwater hunting will be on sale so that any avid outdoorsman can always be prepared.

Friday, Oct. 24

SPIBAs ongoing Breakfast with the Director series continues today, featuring Tomas Hajek, Managing Director of the Northwest Division at Danone Russia. Hajek will be discussing collaborations between businesses from different cultures. The meeting is at 9 a.m. at the Domina Prestige St. Petersburg hotel and all who wish to attend must confirm their participation by Oct. 23.

Get your gong on at Sounds of the Universe, a concert at the city planetarium this evening incorporating six different gongs to create relaxing songs that will transport you upwards into the stratosphere. Tickets are 700 rubles ($17).

Saturday, Oct. 25

AVA Expo, the eighth edition of the event revolving around all things pop culture, returns to Lenexpo this weekend. Geeks, nerds, dweebs and dorks will have their chance to talk science fiction and explore a variety of international pop culture. Tickets for the event can be purchased on their website at

Sunday, Oct. 26

Zenit St. Petersburg returns home for the first time in nearly a month as they host Mordovia Saransk in a Russian Premier League game. Currently at the top of the league thanks to their undefeated start to the season, the northern club hopes to extend the gap between them and second-place CSKA Moscow and win the title for the first time in three years. Tickets are available at the stadium box office or on the clubs website.

Monday, Oct. 27

Today marks the end of the art exhibit Neophobia at the Erarta Museum. Artists Alexey Semichov and Andrei Kuzmin took a neo-modernist approach to represent the array of fears that are ever-present throughout our lives. Tickets are 200 rubles ($4.90).

Tuesday, Oct. 28

The Domina Prestige St. Petersburg hotel plays host to SPIBAs Marketing and Communications Committees round table discussion on Government Relations Practices in Russia this morning. The discussion starts at 9:30 a.m. and participation must be confirmed by Oct. 24.

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