Venture Capital: Oligarch Money Games and Sochi Olympics
Read my analysis of the history of the Russian oligarchs and their present day evolution. What secret agreement was reached between Putin and the oligarchs behind the closed doors? What does the future hold?
In the past couple of weeks or so, Putin has been lauded by many for a stroke of geopolitical genius that averted Syria war and potential World War III. Today, we are seemingly talking about something unrelated: The Sochi Winter Olympics 2014. Yet again, I can’t help but point out the brilliance of Vladimir Putin and his team, and here’s why.
As those who follow Russia, and those who read my blog and my books would know, in the 1990s Russia experienced a brief and painful period of lawless and predatory capitalism. As a result, the country oftentimes was robbed blind by the emerging class of oligarchs.
When Putin attempted to prosecute some of the oligarchs, including the infamous Boris Berezovsky and Mikhail Khodorkovsky, the West immediately organized Putin and Russia bashing media campaign. As a result, Berezovsky, who stole billions from Russia, was given asylum in the UK, while Khodorkovsky, who laundered out many more billions, ended up in jail. However, because of all the howling, name-calling and economic boycotts of the West, it became too politically and economically costly to directly prosecute the guilty.
That’s where the brilliance and wisdom of Putin and his team comes in. Instead of putting anyone in jail, he basically said: “Fine, we know what you’ve done. We know that not all of your money has been made honestly. However, it’s too costly for the state to prosecute you directly. The government doesn’t want to re-nationalize companies you manage either. On the contrary, we want to reduce government owned assets further, so most large companies in Russia were privately owned for competitiveness’ sake. So, this is what we are going to do. You will redeem yourself to the Russian people by investing back into the country. Show us all that you are good citizens, that you care about our country and its future. Pay back the people you stole from. In return, those of you who conduct their business honestly, who provide employment to citizens and who invest back into the country’s future will have support of the government.”
Before this secret, behind the closed doors deal, the oligarchs were syphoning wealth out of Russia at super-sonic speeds, parking it in offshore havens, including Cyprus, Latvia and the UK. There was absolutely no feeling of patriotism or loyalty to the country on their part. Since then, the trend has reversed itself. Coordinated by the Russian government, a number of new Russian projects are being financed by the oligarchs, including road and airport construction, renovation of cities, building of Skolkovo, the so-called “Russian Silicon Valley” near Moscow, alternative energy, support of the Olympic movement and construction of new stadiums, re-purchasing and bringing back of the Russian art stolen during 1918 Civil War and World War II, to name a few. And of course, most of the Sochi Olympics construction was financed by the Russian oligarchs as well.
For those of us who watch Russia closely and who think independently, none of this has gone unnoticed. These are all very important developments for both Russia and the world. Not surprisingly, the significance of these developments, or even the fact that they have occurred, is completely missed or totally twisted by the Western media and US/UK governments. But that’s their problem. When they wake up and their narrative changes, it will be too late.
For those who are awake and open-minded, I will continue talking about the Russian story on this blog and on my Youtube channel. I predict that this will be the biggest story of this decade, and possibly, beyond, which some will grasp only much later.
The video below is about Russian oligarchs’ investments in Sochi, including new sports complex, ski launch, Olympic village, hotels, new airport, marina, resorts and many other things. The cost of the entire Sochi Olympic project is so far 4 times over budget and is the record-setting $50bln compared to planned $12bln. The question the interviewer asks is whether investors will ever see their money back? It is a very interesting discussion – must watch!
Also, this vid is well worth watching for the beautiful views of Sochi. A lot has changed there since I was there last. Can’t recognize the place!
Also, read/watch my new post with lots of cool pics!
Posted on September 29, 2013, in Books, Economy & Investment, Geopolitical Trends and tagged Boris Berezovsky, Mikhail Khodorkovsky, Russia, Russian oligarchs, Sochi, sochi olympic investments, Sochi Olympic torch relay, Sochi Winter Olympics 2014, Vladimir Putin. Bookmark the permalink. 2 Comments.