Below is an interesting take by Yulia Latynina on the Pikalyovo public scolding of Oleg Deripaska by Vladimir Putin.  Paul Goble made a similar comment in his video interview with us.  Also see yesterday’s CNN piece on Deripaska, embedded after the cut.

The Pikalyovo incident is a classic example of how the Kremlin makes decisions. The roles and script are assigned in advance. First, Putin gets demonstratively angry at one of his court oligarchs. Then, Putin makes a decision ostensibly “for the benefit of the people,”  but since his decision is based on information provided by the oligarch in question, the oligarch walks away with everything he wanted — and more.

Why does Putin allocate state funds for uncompetitive factories and on terms that are kept secret from the public?