Red Wolves & White Knights

by Peter Kysel

  Moscow Flight

  On the way to Moscow, the aircraft was practically empty. Nina joined me, bringing a bottle of vodka and some snacks and began by taking me into her confidence.

  “I love Michael very much. Did he tell you that he asked me to marry him and I accepted. I am so happy.” After my con­gratulations and a toast to their happiness, she continued,

  “You don’t know much about me, but you do understand my country. I would like you to understand me better. You have been a good friend to Michael, and I hope that we’ll become good friends too.” I nodded, raised my glass in agreement and we both swigged a shot of vodka, followed by slices of black bread, ham and gherkins. I stretched out on the seat, as we raised our glasses again.

  “To our friendship. Let’s switch from the formal Vy to Ty in Russian”

  “Agreed. Na zdorovie, Pyotr.”

  “Na zdorovie Nina. I know that you are from St Petersburg, which is my favourite city in Russia. So, tell me about your family.”

  “My parents are both from Leningrad. They were born before the war. My father, Oleg, was evacuated as a child before the siege of the city, but my mother, Galina, was left behind. My mother’s parents volunteered to remain in Leningrad during the siege and died in the German bombardment in the winter of 1942. It was a terrible time. People in the city froze and starved and many were reduced to cannibalism. My mother had to learn how to fend for herself and survived by giving herself, at the age of thirteen, to a Soviet soldier from a Destroyer battalion, in exchange for a share of his army provisions and the occasional loot. When he was killed, Galina was passed on to the next sol­dier. I don’t know how many times, until the siege ended in January 1944.”

  Nina was speaking quietly but determined to share her story. I squeezed her hand to reassure her. I said quietly

  “Is it too difficult for you to talk about it?” but she shook her head and had another shot of vodka.

  “No. I want to share my family history with you. Talking about it openly helps me to understand my parents.” I just nodded and she went on,

  “After the siege, Galina was sent to an orphanage, where they discovered and encouraged her artistic talents.

  Galina painted sunny countryside scenes and portraits of optimistic, smiling people in the style of socialist realism. She was clearly suppressing horrific memories of living skel­etons and the ruined city. Her style was praised by the com­munist party and approved by Stalin. Galina prospered as an artist. She was allocated a flat with a kitchen and had access to privileged food shops and to the artists’ leisure colony in the countryside. My mother became a passion­ate Stalinist. Her war experience had convinced her that all foreigners were enemies of Russia. Encouraged by Soviet propaganda, she learned to despise them.”

  “Has Galina been a good mother to you, to compensate for her own deprivation?” It was the wrong question. Nina dissolved into tears before responding.

  “Galina is a cold, hard woman. She told me that she hated girls because they were weak and that she had wanted me to be a boy. I don’t remember receiving any encourage­ment or love from her. I was sent to kindergartens and then after school clubs until my father picked me up on his way home from work. I remember always spending the holidays alone with my father. Galina never joined us. Oleg brought me up as a single parent.” This was my cue to switch to an easier topic and share my own experiences.

  “I was also kept at school till 6 pm and sent to pioneer camps on vacation, as both of my parents worked. As an only child, I appreciated the companionship in the after-school clubs.” Nina seemed to cheer up on hearing that we had experienced a similar, school-centred upbringing.

  “How did your parents meet?” This time Nina smiled, remembering her father’s story.

  “My father Oleg was a chancer. He was an electrician, who came to rewire Galina’s flat, stayed on and married her. His easy-going character compensated for Galina’s intransi­gence and made her more socially acceptable. Oleg, in turn, benefited from her Party status. It all changed when the Soviet Union collapsed. My father divorced Galina, set up his own business and took up with a pretty girl of my age. My mother was horrified that he had become a capitalist. She’s still in love with Oleg but doesn’t care about me at all. Like my father, I feel totally alienated from Galina.” We reflected on our childhoods in silence. Nina then changed the subject.

  “I wanted to tell you that I plan to join Michael in his busi­ness and resign from Gosbank. I want us to build a happy family life together.” She wanted me to know about her loyalty to Michael. Had he told Nina about his ancestors? I wondered with some alarm, when she suddenly interrupted my thoughts, with a startling comment.

  “I saw Andrei in Jersey recently. He’s well and sends his regards,” she said, looking straight ahead. I sat up in my seat and watched her, as she was examining her vodka glass. It was a shocking, but unsurprising revelation.

  Nina had dropped hints during our trip, but this was a clear admission. She is an FSB officer. The locals realised it immedi­ately. That’s why she exuded such a commanding presence in our meetings. I paused to find the right response and said very quietly, “Thank you. Andrei is indeed an interesting man. Please give him my very best regards. I often wondered what happened to him. Did you work with him in Jersey?” Nina nodded and seemed to want to add something. There was another pause, while I started to pull together the strings of our conversation.

  Andrei was a KGB agent. Nina was involved with him in selling the Soviet gold at FIMACO management company in Jersey. She therefore knew about me long before she met Michael. Nina worked in St Petersburg in 1992, when the French Impressionists were spirited out of the country. She also served at the town hall under Putin, who is now the director of FSB. She must be at the department K of the FSB, monitoring financial companies and foreigners. Nina’s ‘chance’ meeting with Michael, three years ago, must have been prearranged by Borby, or by the FSB. I’m just her bonus foreigner. I turned to her and smiled.

  “It was good to hear about Andrei. I am so glad that I’ll be handing over my project in Russia to Michael and you. It has been a great experience, but I am getting too old for it. Russian investments can’t be managed by foreigners from London. I recognise that yours is a country in transforma­tion, like the Wild West was in America a hundred years ago.” Nina seemed taken aback by this comment and put her hand on mine. I restrained myself from pulling away, and after a moment, she made an equally general comment.

  “Even the Wild West needed wise men, to ensure that the robber barons didn’t turn America into a dictatorship.”

  Oligarchs are the robber barons in Russia. Nina has insider’s knowledge and can see the perils ahead. She wants to jump off the Russian roulette wheel before she gets destroyed by it. Borby’s asset stripping at Aeroflot is about to come, bringing him and other oligarchs into conflict with the FSB. Our con­versation conveniently moved from personal to general talk and I quickly added,

  “Hollywood made wonderful movies, but distorted American history by reducing it to fights between cow­boys and Indians, while the robber barons were captur­ing the Wild West. Some good people prospered, and this will hopefully also happen in Russia.” I wondered if I had made a mistake by butting in with my story when she had wanted to share more information, but we had both had too much to drink and at that point, we were interrupted by the announcement to fasten safety belts because we were due to land. Nina rose from her seat, waved her arm in a symbolic salute and said,

  “Let’s continue another time” and moved back to Michael.

  Will she break away from the FSB and tell Michael her story? Nina has been involved in pivotal projects that are shaping her country. Nina understands that if she wants a happy family life, she has to remove herself from this game,

  After our arrival in Moscow Michael, Nina and I met at the Metropol to review CAIC’s investments. Nina took the lead.

  “The easiest investment holding to remove is Avio-
kompanija Baikal. The CAIC was the sole bidder in a priva­tisation auction, but law requires at least two independent bidders. I plan to persuade the judge to reverse his origi­nal decision. The CAIC will return its shareholding to the state, in exchange for cash.” Listening to Nina, I realised that she was going to be enormously helpful in sorting out CAIC’s problems. She showed a total grasp of the situation, both as a qualified Russian lawyer and as an FSB agent. I responded, “Let’s act quickly before we are accused of steal­ing the jet engines. Russia will get back its strategic fleet and general Kornukov can look for its replacements. The CAIC will get its money back.” Next, Michael commented on the Uzbek fruit juices.

  “It’s hard for foreigners to do business in Uzbekistan. We should sell the juice plants to Gulnara Kamirov. Nina can draft the contracts and negotiate the deal.” I nodded.

  “The Uzbeks seldom pay unless forced, preferably by the FSB.” Michael laughed.

  “I’ll threaten to move the Tetra Pak plant back to Sweden unless we get paid.”

  “Other investments, like Baigal Mineral Water will take time to sell, partly because of the theft of much of their equipment.”

  “I would appreciate your proposals for the CAIC share­holders.” That concluded our meeting.

  On the flight back to London I felt relieved that Michael and Nina were prepared to be involved.

  We have a clear and workable exit strategy. The CAIC’s hold­ings can be sorted out. At last, I can see an end to my direct involvement with Russia. This market is toxic, and foreigners shouldn’t touch it.

  #

  The FSB Major

  Nina arrived in London for a holiday in May and moved into Michael’s flat in Kensington. That holiday brought them closer together. One early evening as I sat in their apartment, Nina decided to unburden herself.

  “I went to confession at the Orthodox church in Ennismore Gardens. It has helped to clear my head and decide what I really want out of life. Now I want to make a confession to you.” Michael realised that this would take time. He gave her an encouraging hug, poured her a glass of wine and settled into an armchair opposite. Nina spoke in a quiet, measured voice as if she was speaking about a third person.

  “You know that my job at Gosbank is a cover. We did not meet by accident three years ago I was assigned to monitor you. I joined the KGB after I graduated from Leningrad University in 1988. My professor, Anatoly Sobchak, was elected as Mayor of Leningrad and gave me my first cover job in the town hall. I was assigned to the economic security department. You know, our paths nearly crossed several times in St Petersburg in 1992. I was aware of you before we actually met. People like Boris Berezovsky and his English assistant Michael Johnson are automatically mon­itored by the FSB.” At this point, Michael interrupted her reassuringly.

  “I assumed that I would be followed, but I had nothing to hide and didn’t mind. I was totally captivated by Russia and yes, I assumed that you were assigned to me, but I didn’t care, because I liked you. So far, you have not told me any­thing I didn’t know. If you want to stop now, I’ll respect that.”

  “I’m going to be completely open with you, so that our life won’t be a lie,” said Nina her voice changing with emo­tion. They paused, uncertain how to continue until Michael took the lead.

  “Whatever you say, will remain our secret. I don’t have any big secrets to tell you, except about my great-grandfather.”

  “Let’s talk about him another time,” said Nina, keen to continue her story

  “The FSB transferred me to Gosbank. I was sent to Latvia and later to Britain where I supervised legal contracts for the transfer of assets from the Soviet Union to the west. You are probably familiar with my projects.” Michael didn’t hide his surprise.

  “I was told that gold and art were transferred abroad to finance privatisation and political campaigns and that those projects paved the way for the rise of the oligarchs.”

  Nina laughed.

  “Exactly. Your English banker friend was inadvertently there at their inception. We took his ideas, but as a foreigner and someone possibly involved with western intelligence agencies, he couldn’t be involved. I worked with Artur Talanov in Riga and with Andrei Ivanov in Jersey. I’ll tell you more about them another time. They both behaved badly. Artur left the service and became a criminal and Andrei harassed and physically attacked me. Because of him, I was recalled to Moscow in 1995. A few months later, you and I met.” Michael was impressed by Nina’s career.

  “Do you have a military rank?”

  “Just before the holiday, General Yury Zaostrovtsev, pro­moted me. I am now a major in the FSB.” Michael gulped.

  “Will you be able to leave the FSB? Won’t they retaliate?”

  “Don’t worry the good leavers from the FSB stay unharmed. You have been vetted too and your background and behaviour are deemed acceptable.” Nina paused and changed the subject, to one close to her heart.

  “The Russians envy the ease of life in the West. My parents’ generation was instilled with a dread of mid-night arrests and the disappearances of friends. My generation inherited the anxiety that we are not in control of our lives. I want my children to be free of these Russian demons. They will grow up here, safe and confident.” Nina was thirty-three years old and wanted to start a family.

  “Boris Berezovsky was formally accused of the embezzle­ment of Aeroflot last month. Is that serious for him?”

  “No. The case was instigated by prime minister Primakov. Boris complained to Yeltsin and Primakov is going to be dismissed as prime minister.”

  On 12th May the former intelligence chief and prime minister Primakov was dismissed by the president and Vladimir Putin was appointed in his place.

  #

  The CAIC sale

  Proposals for the disposal of investments in the CAIC were put to the shareholders and accepted. In June 1999 Michael purchased the remainder of CAIC and continued to use it as a vehicle for his private investments and Nina became the owner to avoid any anti foreign backlash. The solutions suddenly became so simple and Noel commented,

  “If we had employed Nina as the fund manager several years ago, CAIC could have been our star fund.” I agreed, without bothering to mention Nina’s FSB role.

  Michael returned to London in September. Relieved that I had ended all my involvement with Russia, I took him to lunch. Michael suggested taking a walk afterwards, a sign that he wanted to have a serious conversation. We left the restaurant and walked in silence past Kensington Palace into Green Park. The sun had come out, it was a warm day and we sat together on a bench.

  “Nina has told me about your conversation on the flight to Moscow,” he said at last. I was relieved that he knew about it and intrigued by his response. He surprised me.

  “She didn’t have a chance to tell you about Andrei. They had a relationship in Jersey, but after Andrei became vio­lent, Nina dropped him.” Now, I felt guilty for not giving Nina the opportunity to open up to me.

  “I am sorry Michael. I assumed that she just wanted to talk about her professional life. We drank loads of vodka and I didn’t want her to say something she might later regret.” Michael chuckled.

  “Don’t worry about that. She has been better trained than any of us in holding her drink. But, more importantly, Andrei feels humiliated and has threatened her again. Nina is convinced that he is going to be vindictive.” I tried to imagine Andrei as a violent man and a jilted lover but found it difficult. I mentioned my doubts to Michael.

  “Andrei is very different now. He is in the hub of money laundering operations. He is a very important, but lonely man in Jersey. He is aggressive, has gained a lot of weight and became a heavy drinker.” Michael looked worried and dropped a bombshell.

  #

  Nina’s Papers

  “Nina feels vulnerable. She kept copies of all the reports of financial impropriety investigated by the FSB.” I sat up in alarm and turned around to check that we could not be overheard. The park was empty
. Nina, by confiding in Michael had revealed her loyalty, but also made us insiders to FSB games.

  This is explosive stuff. Who knows about her secret stash of doc­uments? We are all vulnerable by association. I don’t like it. It’s hard to break away from Russia. I sighed

  “Why did Nina collect the documents?”

  “For personal protection, originally on the advice of Andrei. She started doing it, when the FSB’s evidence of fraud was used for blackmail, instead of for the prosecution of criminals. She thought that any evidence of her inno­cence would protect her.” I shook my head.

  “Nina could never have reported the dirty tricks of her superiors. Unfortunately, she is still guilty of not reporting insider crimes.” I shuddered to think what would happen to Nina and her family if anyone found out about her secret files. From my chat with Nina, I had a reasonable impres­sion of the type of cases involved and didn’t want to know any more, but Michael went on.

  “Nina’s documents give details of asset stripping, transfers of money abroad, bribes to politicians, the lot.” He paused. A reassuring thought occurred to me

  I am alive today because I know so little about them. If Nina has a dossier on these activities, and the culprits realise it, she’ ll be an instant target. Michael looked at me, reading my thoughts.

  “She has documented cases of contract killings, executed by organised crime cartels, either to settle their own scores or on behalf of the FSB and the oligarchs.” This was over­whelming. I didn’t want to hear any more. We got up from the bench and walked slowly towards Hyde Park Corner. It was after four o’clock and the park was beginning to fill up with office workers, joggers, and tourists. We walked through the underpass to emerge in Hyde Park and contin­ued our conversation.

  “Nina’s parents kept her box of secret documents. She is uncomfortable with that arrangement. What do you think we should we do?” asked Michael, adding,