With the exception of Chubais who advanced early, this whole gang of Sobchak’s nestlings would have probably stayed unknown in Russia, if it were not for V. V. Putin’s luck. After all there is a lot of functionaries in Russia. And although today Putin’s supporters assure us that this was a very important Committee, it is hardly believable that the external relations of Saint Petersburg’s city hall were so important for the Russian Federation. This was the usual sinecure for functionaries. Kudrin’s post during that time sounds especially dumb: deputy chairman of the Committee of external relations of Saint Petersburg’s city hall on economic development. What is that, he developed external relations economically? Did he try to get the maximum financing for reception dinners for the city hall’s foreign guests? But as we will see, Saint Petersburg city hall interpreted external relations quite broadly and made them a lucrative business.
In the end of 1991 and the start of 1992 Putin initiated Saint Petersburg’s food supply from outside the border in exchange for exportations. On December 4th 1991 he signed a letter with such a proposition to the Committee on external economic relations of the Ministry of economy. In relation to this Putin asked to give Saint Petersburg’s city hall a quota of $124 million for the export of raw materials (wood, oil products, color metal scrap and also 14 tons of rare metals) and “a right to distribute the quotas and give out licenses” to the Committee he was heading. On February 1st 1992 Petr Aven who was then the chairman of the Committee on external economic relations stamped Putin’s letter and on March 25th 1992 the Ministry of Economy gave Saint Petersburg’s CER the right to sign export licenses. Actually, Putin’s CER did not wait the Ministry’s permission to sign thirteen licenses. Most often it was not V. V. Putin himself who signed these important documents but his deputy Alexandr Anikin. What did they sign? A few examples: the Nevsky Dom company received a license to export oil products, Leningrad’s Krasny Krest society received a license to export aluminum and rare metals. The international commercial center of a certain Grigory Miroshnik received the “task” to export 150 tons of oil products in exchange fore meat, potatoes and sugar. The joint stock company Fyvekor received the “task” to export 50 thousand meter cubes of wood in exchange for powder milk.
Already then the activities of the committee headed by Putin gave rise to questions from Petrosovet’s deputies. As far as January 10th 1992 Petrosovet’s 13th session decided to create a work group to investigate the CER’ activities. The group was headed by the deputy Marina Salye, chairwoman of the Petrosovet’s Committee on food and the deputy Yuri Gladkov. This is what the work group has established:
The raw materials, including rare metals were sold abroad with the CER’s permission “at dumping prices, lower the market prices”. In particularly, in the agreement of the Committee with the German firm Jikol (its principal shareholder, a certain Piter Bakhman received a license to export 13 997 kg of rare metals) the price for 1 kg of scandium was established at 72,6 German marks, while the price of scandium on the world market is two thousand times higher – 150 thousand German marks. Prices on other rare metals were understated by 7,10 or 20. Actually, Putin prudently did not sign this agreement, it was signed by one of his deputies.
The Committee’s agreements foresaw commissions for the firms. In the agreement of January 3rd 1992 with the firm LOKK signed personally by Putin the commission was 25% ($540 thousand). In the agreement with Interlesbirzha concluded “with the Committee’s chairman V. V. Putin” and signed by Anikin the commission made up 50% ($5 983 900). In the agreement with the Svyatoslav firm the commission for 20 thousand tons of cotton also made up 50% ($12 million).
Salye’s work group concluded by presenting cases when licenses were given out for exporting raw materials under wittingly fictive food deliveries (since the products did not enter the city). Part of the agreements was concluded with such huge formal violations that they made the agreements legally powerless and the court could not oblige the firms to execute them – to really deliver the food.
Salye’s work group recommended Sobchak to discharge Putin from his post and gave the materials of its investigation to the municipal attorney and to the Control Department of the RF President’s Administration. (The chairman of the Committee of external economic relations Petr Aven was also informed about the results of the investigation). On March 31st 1992 the head of the Control Department Yuri Boldirev put the following resolution on the work groups’ report: “The Department has received materials from the deputies of Saint Petersburg’s City Council demonstrating the need to discharge the chairman of the Committee of the city’s external relations Vladimir Vladimirovich Putin from his functions. I demand to exclude the possibility of his appointment to any other post until the decision of the Department on this matter”.
The city’s attorney Vladimir Yeryomenko sent Sobchak a representation about “incorrectly formulated CER agreements and some licenses”. The CER chairman Aven did not protest the licenses given out by Saint Petersburg’s CER. Possibly this episode is the one explaining president Putin’s perfect relations with the financing group Alpha headed by Petr Aven. Sobchak did not permit to discharge Putin. Nevertheless, Putin’s deputy Anikin was forced to resign. And a part of the concluded agreements was canceled. According to the Novaya Gazeta the firms, which received licenses for selling raw materials from Putin have only received $34 million as commissions (Novaya Gazeta March 13-19th 2000).
In 1992 Putin was appointed deputy mayor while keeping his post as the CER chairman. In other words he was raised and not discharged. And he kept a lucrative business: the Committee of the city halls’ external relations. In these years Putin received the nickname of “Grey Cardinal”. He advised Sobchak on all “external” matters, he was his very close person. All serious documents were first approved by Putin and only then by Sobchak.
From 1993 Sobchak begins to lead an “international” life style and goes often abroad. In his absence it is Putin who fulfills the mayor’s functions. The circle of his competence was surprisingly large – diplomatic representations, hotels, gambling business, public associations, supervising the special services and cooperating with the army, the police, the FSK, the Prosecutor General, the customs. Putin also managed large investment projects. In March 1994 he was appointed first deputy chairman of the city’s administration. And still he keeps his post as the chairman of the external relations Committee. It is as if this Committee was smeared in honey.
The Saint Petersburg’s period of Putin’s life is filled with scandals, through which he managed to come unscathed. One of the most interesting in my opinion was the episode when in 1991 at Sobchak’s and Putin’s demand the Moscow police illegally searched the house of Sobchak’s former assistant Yuri Shutov in order to confiscate a tape record of Sobchak’s conversation with a fixed-spot spy of the French intelligence service. In 1992, Shutov, author of the book “A Dog’s Heart” was attacked, however nobody risked linking this incident with the names of Sobchak or Putin. When Vladimir Vladimirovich came to power Shutov was arrested and charged with many crimes, including almost all ordered murders in the city of Saint Petersburg and it has been six years now that he is detained in prison. According to the Versia newspaper (August 17-23rd 1999) the materials about the unsanctioned search at Shutov’s house in 1991 are kept (or at least were kept) by the senior investigator of the Prosecutor General’s Department of special cases U. M. Vanyushin. The fixed-spot spy of the French intelligence service apparently spoke with Sobchak about such things that it is too scary to bring Shutov to court. This is why he stays in prison untried. The Iron Mask.
A lot of people were discontent with Sobchak’s first deputy. The following directions of Putin’s work have caused concrete admonishments:
1). Cooperation with foreigners, as suspected this was not disinterested;
2). Violations during the privatization of large objects of municipal property;
3). Illegal trade using his official position and other abuses
;
4). Execution of Anatoly Sobchak’s confidential instructions.
About the first article. Putin assisted a series of large German firms and banks to move in the city. In particular, he assisted the opening of the filial of the BNP-Drezdner Bank (Rossija). (Putin’s relations with Dresdner Bank continue today. The head of the bank’s Russian department Mattias Wornig has joined Gazprom’s Council of directors in February. According to the Wall Street Journal, Worning was a Stasi major until 1989 and was a friend of major Putin. He is still his friend now, which explains his extraordinary career in Russia). Putin has helped the bank to move in the building of the former German embassy on Isakievskaya Square. He has also helped the Credit Lyonnais Bank to obtain a house on Nevski Street. The office of the Coca-Cola Company was moved to the building of the House of Political education of Leningrad’s CPSU committee. For some merits the company was even freed from local taxes. The Proctor-and-Gamble and Gillette companies also benefited from the future president’s patronage.
About the second article of accusations. According to the Kommersant newspaper (1999 issue 32) Putin has taken part in the selling of the Astoria hotel. In fact, a tender on selling 40% of this hotel’s actions was held in Saint Petersburg and supposedly Putin tried to increase his share holding by buying it, but he failed. The actions went to the owner of the alcohol beverages factory A.F.B.-2 A. Sabadash. In response Putin supposedly (according to the Stringer Newspaper November 2000) has threatened to demolish the factory but by the end of 1998, still according to the newspaper, the conflict was finally solved and Putin was paid compensation – $800 thousand. Putin has participated a few other times in the hotel business: he invited foreigners to the hotels Evropa and Nevski Palace.
Apart from this, the deputies of the Petrosovet had questions about Putin’s participation in the privatization of the Baltic Sea steamship line, whose control permitted to organize the selling of ships to the West at dumping prices. According to the Versia newspaper (1999, issue 31) and the Stringer newspaper this operation was conducted through a certain I. I. Truber, supposedly a “criminal authority”. The newspapers also mentioned Putin’s participation in the privatization of the alcohol beverages factory Samtrest again supposedly through the “criminal authority” M. M. Mirilashvili, Misha Kutaissky.
About the third article of the accusations. In 1992, as it was mentioned earlier, an investigation of Putin’s Committee activities was organized. Public hearings were held about the results of the investigation. Putin has then acknowledged the errors, part of the contracts was canceled and it was the deputy Anikin who paid for it all, as you remember he was fired.
Apart from this, the city’s Prosecutor General accused Putin of illegally giving a special permission for a gambling business to the firm Lennatraktzion. According to rumors, Putin who was responsible for the licensing of Saint Petersburg’s casinos was involved in unofficial fund raising as well.
About the fourth article of accusations. Stubborn rumors were circulating that Putin was acquiring real estate in France on Sobchak’s instructions. This information appeared in 1999 when Putin was appointed prime minister. However, supposedly, no evidence was found.
After Sobchak lost the Saint Petersburg’s governor elections, Putin was accused of organizing a week campaign (and even of betraying his boss). As a proof information was given that two days before the elections Putin has met on close terms with Vladimir Yakovlev – Sobchak’s opponent during two hours on March 17th. The mysterious fire at Putin’s dacha in Roshin in 1996 is worthy of mentioning since it was the elections year in Saint Petersburg. Who did this? And what for?
In 2000 the Stringer newspaper was rather harshly attacking the newly elected president, defaming and discrediting him. For instance, the following information shed light on the reason behind Putin’s hostility towards the oligarch Gusinsky. The newspaper has said that Putin took part in the privatization of Saint Petersburg’s 11th Channel and his sale to the Russian video Channel. Supposedly during this privatization a law was violated. A criminal case was opened. It was led by the senior investigator of the RF Prosecutor General U. M. Vanyushin mentioned earlier. Supposedly during the investigation it was discovered that D. Rozhdestvensky (the owner of Russian Video) has financed Putin’s wife’s trips abroad. We remind that later the main actor of this case Mikhail Mirilashvili fell under investigation in relation to this and the history of Most-Bank’s and Vladimir Gusinksy’s destruction began with the Russian Video. In fact some sources affirm that it was Gusinsky who initiated this episode of information war against Putin. Stringer wrote that at that time Putin tried to pressure the investigation in order to mask his involvement. Then it makes sense to largely cite the text of an informative-analytical note of the harshest anti-Putin content published by Stringer in November 2000:
“…When he was still Saint Petersburg’s vice-mayor Putin was responsible for licensing a series of casinos, receiving from $100 to $300 thousand for each license. Besides he is the founder of all elite clubs of the city.
Putin’s closest tie in commercial business is R. N. Tzepov, head of the security firm Baltic-Escort (it was founded by a certain Zolotov formerly head of A. Sobchak’s personal guard, now head of Putin’s personal guard). In 1994 Tzepov was charged with article 222 of the RF Criminal Code (illegal carrying and keeping of fire arms). Despite this Tzepov is a 7th section officer of Saint Petersburg’s Department of fight with organized crime. It was Tzepov who raised money during the licensing of the city’s gambling business. As an example we can name the Konti Casino, whose head Mirilashvili monthly pays a bribe to Putin through Tzepov. The firm Farmavit pays Putin $20 thousand a month. In 1995 Tzepov offered an emerald to Putin’s wife that he had won in a card game to the criminal authority Botzman. The latter has stolen the emerald in 1994 in South Korea. The emerald is wanted by the Interpol (1995-96 catalogue). Tzepov offers services to Putin on the condition that the latter will “cover” his activities. Through Putin Tzepov received five cover documents, among those RF Federal Security Service, RF Foreign Intelligence Service and RF Ministry of Internal Affairs. In March 1998 the deputy of the Prosecutor General Katishev reopened a criminal case on Tzepov. Presently Tzepov is hiding from criminal prosecution in the Czech Republic where he arrived with falsified documents (his papers were drawn up for a false name in Saint Petersburg’s FSB Department).
The main Special services that Putin relies on are the RF FSB and the Department of Fight against Organized Crime (RUBOP). RUBOP’s former heads Shakhanov and Milin together with Putin and the head of Saint Petersburg’s FSB department Grigoriev have organized A. Sobchak’s removal to France. On the eve of Sobchak’s interrogation by the Prosecutor General RUBOP’s SWAT team has brought Sobchak to the hospital on Putin’s demand, where the head of the Military Medical Academy Shevchenko established a sham diagnosis. Later the same sham diagnosis was established for Ruslan Linkov (witness of the attack on G. Staravoytova).
The criminal case of the investigator U. M. Vanyushin contains materials saying that in 1991 on the demand of Sobchak and Putin Shakhanov and Milin illegally searched Sobchak’s former assistant U. T. Shutov in order to confiscate Sobchak’s tape-recorded conversation with a fixed-spot spy of the French intelligence service. In 1992 an attack was organized on U. T. Shutov, which resulted in a brain injury. The victim was hospitalized.
The prosecution’s investigation brigade (U. M. Vanyushin) has materials saying that the former head of the specialized bureau of ritual services Makutov was monthly paying $30 thousand to Putin.
With the help of Saint Petersburg’s vice-governor Grishanov (former commander of the Baltic Fleet) Putin was selling ships from the military naval base through the Lomonosov Harbor.
This port situated on the territory of the former military naval base and created by Sobchak, Putin and Cherkesov is a transit point for smuggling raw materials from Russia and importing goods in our country. This work was done in particular by the Sea department
of Russian Video.
In spring 1996 about $30 million were transferred to Sobchak’s pre-electoral campaign from the Tzarskoselsky Bank into a Swiss bank. The transfer was controlled by Putin, Cherkesov and Grigoriev. (The materials were kept by the head of the SKROSO FSB service B. O. Desyatnikov.)
The head of the Vasileostrovski District administration V. Golubev has known Putin from the times of his service in the 1st service of the USSR KGB Department in Leningrad. His former colleagues organized a series of firms, through which budget money is laundered and then appropriated. …
When he was a vice-mayor Putin has organized the sell of submarines abroad through Leningrad’s admirals association. In 1994 the deputy general director of the association was killed (one of the versions – for refusing to illegally sell military property abroad).
The BFG – the Baltic Finance Group (whose general director is Kapish) provides monthly financial assistance to Putin and Cherkesov. In 1994-95 Kapish had a conflict with one of the founders of the oil terminal of the Sea Harbor. Kapish ordered the murder of this founder. For $30 million Putin convinced the founder to solve the conflict after what the latter left to Israel. According to the existing information Kapish gave $6 million to Putin supposedly for the 1996 presidential campaign. The money went through one of the district banks, which was closed soon after. …
Limonov vs. Putin Page 3
