Russia » Politics

"Iron Fist" for oligarchs

Kremlin has prepared a "revolutionary" surprise for Russian businesses

Elections are over, the governing elite is changing at an incredible pace. However, the most important question concerning cooperation between authorities and financial capital still remains unclear. In the meantime, very few doubt the immense importance of this issue.

Those who expected raids on private businesses and major law suites against oligarchs, must have been too quick to arrive at such conclusions. Those who assumed that with today's toughening of the country's politics everything will remain the same, obviously, did not think hard enough. Time is running and our businesses are still unaware of those secret weapons authorities are hiding behind their backs. Such uncertainty prevents Russian businesses from drawing in additional investments and earning additional billions.

It isn't a secret that Russia's authority represents a powerful medium that directly influences distribution of private property. Therefore, its every decision is followed by direct monetary compensations from all the deals. This, perhaps, is the key characteristic of today's Russian state system and Russian attitudes in regards to private property. Russian authority does not regulate those relations between property owners; instead, it regulates property owners themselves. As a result, this becomes practically one of the main duties of those at power. Obviously, until the government continues to regulate property owners and either directly or indirectly influence property distribution, it cannot become a legitimate arbitrator and interfere with the existing relations of property owners.
This cannot last long however. Despite of the publicly proclaimed steady growth of Russian economy, in reality it remains rather low and unstable. According to Deputy Minister of the Ministry of Economic Development and Trade Elena Danilova, Russian federation occupies a rather modest 67th place among all-economic competitiveness. Apparently, the best thing we can be proud of is a certain level of development of corporate management—63rd place among world leaders.

It seems that this particular corporate management had something to do with the major sensation of the Russian Forum in Davos. Members and guests of the Forum have been quietly spreading rumors of some sort of a “secret national report”. Apparently, the details of the report remain unknown to the general public. At least, nobody has stated clearly whether this “national report” has a potential of becoming an indestructible foundation of those at power, or will turn into an ideological weapon for another set of attempts to revise “private property”.

Most likely, nobody has ever seen this “national report” anyway. However, one thing remains clear for certain. That is, that the government is planning something. This factor in turn boggles the minds of business owners.

However, the ultimate game between the two parties (i.e. government and businesses) cannot begin without specifically outlined rules. The existing model has obviously ceased to exist. The question that comes to mind is this: who and for what purposes will make an “iron fist” for Russian businesses?

Timofey Iznorkin

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