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Russian State Interests vs. Free Enterprise

From this week’s Economist, “The Making of a Neo-KGB State“:

Many officers of the active reserve have been seconded to Russia’s big companies, both private and state-controlled, where they draw a salary while also remaining on the FSB payroll. “We must make sure that companies don’t make decisions that are not in the interest of the state,” one current FSB colonel explains. Being an active-reserve officer in a firm is, says another KGB veteran, a dream job: “You get a huge salary and you get to keep your FSB card.” One such active-reserve officer is the 26-year-old son of Mr Patrushev who was last year seconded from the FSB to Rosneft, where he is now advising Mr Sechin. (After seven months at Rosneft, Mr Putin awarded Andrei Patrushev the Order of Honour, citing his professional successes and “many years of conscientious work”.) Rosneft was the main recipient of Yukos’s assets after the firm was destroyed. The attack on Yukos, which entered its decisive stage just as Mr Sechin was appointed to Rosneft, was the first and most blatant example of property redistribution towards the siloviki, but not the only one. Mikhail Gutseriev, the owner of Russneft, a fast-growing oil company, was this month forced to give up his business after being accused of illegal activities. For a time, he had refused; but, as he explained, “they tightened the screws” and one state agency after another—the general prosecutor’s office, the tax police, the interior ministry—began conducting checks on him.