Zee Beam News

07.02.2005 Gazeta.Ru - Lack of coordination between governmental agencies and inconsistencies in their actions is the result not only of the violent struggle within the Kremlin but also of natural personnel selection. It is scarcely surprising that something poorly put together starts falling apart. The much-talked-of takeover of Yuganskneftegaz - Yukos' main production unit - again was in the limelight last week as new details of the dubious deals leaked into press. Ironically, while continuing its violent fight against the owners of unlawfully amassed capitals the regime itself clearly experiences problems with legalization of "redistributed" property, i.e. Yuganskneftegaz. The war on the so-called oligarchs, the country's richest who built their vast fortunes in shady privatization deals of the 1990s, has been a cornerstone of popularity of Russia's second president Vladimir Putin. Those Russians who believe that building a strong state is a priority are convinced that this task cannot be achieved without fighting oligarchs. Those approving of the ends approve also of the means - which range from arrests and prolonged pre-trial detentions to seizure of "fraudulently amassed" fortunes - and agree with rhetoric used by the authorities. The Kremlin's campaign to dismantle Yukos received popular support namely because it was believed to be aimed - in the long run - at strengthening the state. A considerable majority of Russians agreed that Mikhail Khodorkovsky and his colleagues were enemies of the state and any means would do to destroy them. The recent poll held by Levada Center shows that the popular support for the campaign against Yukos is waning, and the Kremlin has only itself to blame for such a change of heart in ordinary Russians. For instance, last week was filled with highly conflicting media reports on the circumstances of sale of Yuganskneftegaz and its further fate. Once again the question as to who financed the purchase was raised and remained unanswered. It was also reported that the new owners of Yuganskneftegaz had no intention to pay off the company's debts, being convinced that the former owner -Yukos - should be held liable for them. One of the business newspapers speculated that Rosneft - that played a crucial role in the seizure of Yugansk - could default on the company's debts. Officials issued conflicting statements. The conflict between Gazprom and Rosneft flared up anew. The government is very good at concealing information, perhaps, this is the only trick the Kremlin and the Bely Dom have mastered to perfection. Last week's abundance of information proves that the conflict over a tasty morsel of property has reached such an enormous scale it is simply impossible to hush it up. But then, the lack of coordination between governmental agencies and inconsistency in their actions is the result not only of the violent struggle between the various clans and financial and industrial groups within the Kremlin but also of natural personnel selection of the recent years. Seeking to purge its ranks of all those who fail to toe the Kremlin line the incumbent regime has ousted from the presidential administration and the cabinet almost all those versed in devising intricate and immaculate schemes. Today at the helm are those who prefer simple and straightforward solutions that hardly correspond with market economy and legislation. Hence, numerous drawbacks. In other words, having applied the same fraudulent scheme that Yukos today stands accused of using back in the 1990s the new owners have failed to provide effective financial schemes and ensure appropriate media coverage. What is happening now undermines the ideological foundations of the attack on Yukos. Not in the eyes of liberal-oriented public who initially realized what was going on, but in the eyes of most Russians who previously approved of the onslaught on the oligarchs. Now it transpires that arrests of shareholders and employees of Yukos, mounting tax claims and other actions of the authorities do not strengthen but, on the contrary, undermine and discredit the state. The war to the victorious end declared by the Kremlin has resulted in plunder. Old oligarchs are being replaced with new ones. But the authorities have not yet enlisted support for such actions. The poll results released by Levada Center this week may prove to be nothing compared what is yet to come. The more light is shed on the true ends pursued by the Kremlin in its attack on Yukos the less support the regime will enjoy. All that is sad as the Kremlin has no opportunity - and no desire - to revise its policy. The authorities may either revise it by questioning both the means and ends of that fight, or continue pursuing those policies hoping that some events will occur and distract public attention away from Yukos.