The British newspaper The Guardian reported on the struggle unfolding inside the Kremlin before the transfer of power from Vladimir Putin to his chosen successor Dmitry Medvedev, due to take place in May. According to the publication, the issue was control over the assets of Russian state corporations, and for the first time information about the president's personal wealth was also discussed.
The occasion for the discussion of Putin's wealth was an interview by political analyst Stanislav Belkovsky with the German newspaper Die Welt, after which his claims were repeated by The Washington Post and The Moscow Times. In conversation with The Guardian, Belkovsky reiterated his assertions.
Belkovsky's Claims
Citing sources in the presidential administration, Belkovsky alleged that during his eight years in power Putin had secretly accumulated more than $40 billion, which would make him the richest man in Russia and Europe. According to the analyst, Putin owns large stakes in three Russian oil and gas companies, hidden behind an "opaque network of offshore trusts."
Belkovsky claimed that Putin "effectively" controls 37% of Surgutneftegas shares worth $20 billion, owns 4.5% of Gazprom and "at least 75%" of Gunvor, the Swiss oil trader founded, he said, by the president's acquaintance Gennady Timchenko.
"At least $40 billion. We cannot know the maximum. I suspect there are businesses I know nothing about," Belkovsky said, adding that the sum "could be more. It could be much more."
According to him, Putin's name does not appear in any shareholder register, and the ultimate beneficiaries are registered in the Swiss canton of Zug and Liechtenstein. Belkovsky said he was confident in his estimate: "It is no secret among the elites. But note that Vladimir Vladimirovich has never sued me."
Putin has not commented on the allegations. The Guardian sought comment from the Kremlin but was told that presidential press secretary Dmitry Peskov was unavailable.
Clan Warfare
Discussion of Putin's wealth had previously been taboo, but the allegations emerged against the backdrop of a struggle in the Kremlin between a group led by deputy head of the presidential administration Igor Sechin and a "liberal" clan that includes Medvedev. Sechin's group, according to the newspaper, consists of siloviki—people from the security services and military structures; it was said to include FSB chief Nikolai Patrushev, his deputy Alexander Bortnikov and presidential aide Viktor Ivanov. The liberal camp was said to include Roman Abramovich, Viktor Cherkesov and Alisher Usmanov.
The publication's sources characterized the struggle not as ideological but as a war between business competitors. Putin's decision to back Medvedev, who has no ties to the security services, as president was seen by them as a serious blow to Sechin's hardline clan. Some analysts believed Putin would like to leave but was forced to stay to protect Medvedev; others disagreed. On Monday Putin confirmed that he intended to become prime minister next year.
Gunvor and Context
Gunvor is based in Zug and, according to the newspaper, has neither a website nor an office in Moscow, but in 2007 it made a profit of $8 billion on turnover of $43 billion. Timchenko, like Putin, worked in the KGB's directorate for external relations; they are said to have met in the late 1980s through KGB circles. The company did not respond to a request for comment.
Critics argued that the wave of renationalization under Putin turned his associates into multimillionaires, and now the Kremlin elite is deciding how to preserve their wealth after his departure, since most of the money is in the West. "There is no point in having all this money if you cannot go to the Maldives or Paris and spend it," said Elena Panfilova, director of Transparency International's Russian branch.
In an interview with Time, which named Putin Person of the Year, the president firmly rejected allegations of corruption in the Kremlin. Asked whether "some of the people closest to you" were getting rich, Putin replied: "Then you know who and how. Write to us, to the Ministry of Foreign Affairs, if you are so sure. I presume you know the names, you know the systems and instruments." He assured that the reaction would be "quick, immediate and within the framework of existing law."
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