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After the collapse of the Soviet Union, people began discovering documentation of the secretive outflows of money from the USSR.
An even bigger dark money channel was the use of “Friendly Firms” - groups that other companies had to pay, in order to do business in the USSR.
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An even bigger dark money channel was the use of “Friendly Firms” - groups that other companies had to pay, in order to do business in the USSR.
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One of those firms, it was discovered, was Robert Maxwell’s Pergamon Press - a large publishing company that was used to sell the Soviets’ science books to the West.
Maxwell was found dead just days before this list was published.
-from Putin’s People, by Catherine Belton
Maxwell was found dead just days before this list was published.
-from Putin’s People, by Catherine Belton
As it turns out, the communist party was selling goods and materials to foreign companies at incredibly low, fixed internal Soviet prices.
The companies would reap huge profits, and then use that money to finance active measures campaigns to destabilize other nations.
The companies would reap huge profits, and then use that money to finance active measures campaigns to destabilize other nations.
Although the government’s official budget was only ~$160 million, the KGB was still spending $200 million to fund its Cuban listening stations.
When the IMF loaned Russia $1bn, the funds were redirected to a bank that helped fund the KGB’s foreign operations against the west.
When the IMF loaned Russia $1bn, the funds were redirected to a bank that helped fund the KGB’s foreign operations against the west.
The young oligarchs, having amassed and centralized wealth, were eventually asked loan money to the struggling Russian state.
They knew the state would likely default, and allow them to hollow out the government even further.
The parallels to our vulture funds are hard to miss.
They knew the state would likely default, and allow them to hollow out the government even further.
The parallels to our vulture funds are hard to miss.
Under impotent leadership, Putin became the de facto Mayor of St. Petersburg.
He secretly funneled “Oil for Food” program proceeds to shell companies and “favored firms,” like the KGB had previously.
This siphoned the state’s wealth into offshore bank accounts, for other uses.
He secretly funneled “Oil for Food” program proceeds to shell companies and “favored firms,” like the KGB had previously.
This siphoned the state’s wealth into offshore bank accounts, for other uses.
A turf war eventually occurred over the extremely important port of St. Petersburg, and it came under the control of members of Russian intelligence.
The “former” KGB officers built on Putin’s model and, over time, the city’s port operations were run like a criminal enterprise.
The “former” KGB officers built on Putin’s model and, over time, the city’s port operations were run like a criminal enterprise.
A U.S. business man who sought to operate in the port was shocked.
When he arrived for meetings, he was driven to a palatial, guarded compound, where he met with a man wearing track pants and gold chains, who then gave the okay for him to have meetings with actual officials.
When he arrived for meetings, he was driven to a palatial, guarded compound, where he met with a man wearing track pants and gold chains, who then gave the okay for him to have meetings with actual officials.
In the late 90s, the economic bust was dire - and an opening.
The government had spent the last four years funding the country’s budget with short term debt, creating a pyramid scheme where the only winners had been a handful of oligarchs (the “Young Wolves” of the Yeltsin era.)
The government had spent the last four years funding the country’s budget with short term debt, creating a pyramid scheme where the only winners had been a handful of oligarchs (the “Young Wolves” of the Yeltsin era.)
For a time, the tycoons had used surging interest rates on government bonds, and a fixed exchange rate, to pocket the proceeds of a sure fire bet - while the central bank burned through its hard currency reserves, keeping the ruble stable.
It had all come crashing down in 1998 and again, the Russian people had borne the brunt of the blow
Many of the oligarchs’ banks had crashed in the crisis. But while they had managed to funnel most of their fortunes away offshore, the general population’s savings were wiped out.
Many of the oligarchs’ banks had crashed in the crisis. But while they had managed to funnel most of their fortunes away offshore, the general population’s savings were wiped out.
Just as an aside here, I feel like there are a couple of parallels worth noting.
One is the corporate debt buyback program.
Do we know where all of this went? https://twitter.com/clearing_fog/status/1291515589698023424
One is the corporate debt buyback program.
Do we know where all of this went? https://twitter.com/clearing_fog/status/1291515589698023424
Second
The Trump team is attempting to yank public financial support.
In a relatively rare move, the Fed is trying to push back against Mnuchin’s attempt. https://twitter.com/clearing_fog/status/1329566799680086019
The Trump team is attempting to yank public financial support.
In a relatively rare move, the Fed is trying to push back against Mnuchin’s attempt. https://twitter.com/clearing_fog/status/1329566799680086019
