Russia's richest woman. For now.
Russian police recently stormed the corporate offices of Intenko, a construction company owned by Yelena Baturina. The raid was part of a larger probe investigating charges that the former first lady of Moscow embezzled $440 million in political kickbacks. Many people expect that both Ms. Baturina and her husband, Yuri Luzhkov, will soon face indictments related to an estimated $7.8 billion in malfeasance that occured during his tenure in office.
The investigation, however, is definitely not something to celebrate. As the cases of Boris Berezovsky and Mikhail Khodorkovsky demonstrated, the Kremlin uses this type of judicial action for political gamesmanship and score-settling, not justice. Only people with close connections to the political establishment will benefit in any way.
If the regime does intend to take on the Inteko empire, the big question is why now. Those who fall foul of the Kremlin have typically been able to keep their ill-gotten gains, provided that they do not interfere in politics. Mr. Luzhkov has not made any critical comments about either President Dmitri Medvedev or Sergei Sobyanin, Moscow's current mayor. Rather, he has spent most of his time looking for houses in London and trying to obtain EU citizenship. Without the leverage of being the elected representative of Russia’s largest city, Mr. Luzhkov seems to be a fairly harmless figure.
There are still several reasons why the Kremlin will benefit from prosecuting the ex-mayor and his wife. First, it allows the regime to pretend as if it is battling graft, while not actually threatening its own fraudulent apparatus. Conversely, it will provide a new influx of ‘capital’ for a patron-client system that runs on grease. Ms. Baturina’s personal fortune—which Forbes estimates at $2.9 billion—is clearly a tempting prize for those around Medvedev who have yet to cash in on government service. While it is certain that the Luzhkovs did not earn this money, it will be sad if it becomes part of another orgy of looting and so perpetuates this corrupt system.
Vladimir Putin’s declaration that "a thief must sit [in prison]" apparently only applies in select cases.
The investigation, however, is definitely not something to celebrate. As the cases of Boris Berezovsky and Mikhail Khodorkovsky demonstrated, the Kremlin uses this type of judicial action for political gamesmanship and score-settling, not justice. Only people with close connections to the political establishment will benefit in any way.
If the regime does intend to take on the Inteko empire, the big question is why now. Those who fall foul of the Kremlin have typically been able to keep their ill-gotten gains, provided that they do not interfere in politics. Mr. Luzhkov has not made any critical comments about either President Dmitri Medvedev or Sergei Sobyanin, Moscow's current mayor. Rather, he has spent most of his time looking for houses in London and trying to obtain EU citizenship. Without the leverage of being the elected representative of Russia’s largest city, Mr. Luzhkov seems to be a fairly harmless figure.
There are still several reasons why the Kremlin will benefit from prosecuting the ex-mayor and his wife. First, it allows the regime to pretend as if it is battling graft, while not actually threatening its own fraudulent apparatus. Conversely, it will provide a new influx of ‘capital’ for a patron-client system that runs on grease. Ms. Baturina’s personal fortune—which Forbes estimates at $2.9 billion—is clearly a tempting prize for those around Medvedev who have yet to cash in on government service. While it is certain that the Luzhkovs did not earn this money, it will be sad if it becomes part of another orgy of looting and so perpetuates this corrupt system.
Vladimir Putin’s declaration that "a thief must sit [in prison]" apparently only applies in select cases.
