US Senate hearing on YUKOS and Russian Democracy.

Last Thursday, the US Senate held a hearing
on the state of Russian Democracy in general and state takeover of Russian oil-giant YUKOS and the persecution of its chief Mikhail Khodorkovsky in particular. As a civic-minded American and Russian Immigrant, I welcome this hearing. However, I can't help but point out that it comes a bit too late--let's say it is at least 11 years overdue. If you ask me why 11 years, consider the following.

In September of 1993, Putin predecessor and his chief benefactor Yeltsin bypassed the Russian Constitution and dissolved the parliament (then called "The Supreme Council") after the parliament tried to impeach him over governmental economic policies. When MP's and their supporters in turn started a full scale rioting in Moscow, Yeltsin ordered the military into the city, sent the tanks to fire on the parliament building, and ordered the elite security forces to storm it (and they did on October 3-4, 1993). Then US President Clinton with a number of US Senators and representatives, including Bob Dole (R-Kansas, Ret.), praised and justified Yeltsin behavior toward Legitimately Elected parliament on the ground that among the Russian parliament supporters there were hard-core communists, extremists, etc. To a large degree it was true--among dissolved parliament followers there were quite a few unsavory characters, like notorious antiSemite retired general Makashov, whose gangs rampaged on the streets of Moscow. However, nobody in Washington (at least to my knowledge) even bothered to ask whether Yeltsin had any Constitutional right to dissolve the parliament in the first place. Later in 1993 on the Yeltsin behest, the new Russian Constitution was adopted. This Constitution gave the Yeltsin nearly autocratic powers, such as the right to dissolve the parliament if it rejects presidential legislation or governmental appointees three times in a row. Again, very few (if any) in Washington voiced concern. As long as Yeltsin said he was "building democracy" and fought the "remnants of Communist Regime", it was OK with the Clinton Administration and the Capitol Hill. Nobody seem to be worried that this Constitution essentially restored the autocracy which given the Russian historical conditions and the weakness of civic institutions could easily turn into bloody dictatorship.

The mid 1990's for Russia were marred by the first Chechen war with its filtration/concentration camps and massacres. This period also became known for grossly corrupt "privatization" deals when huge state-controlled businesses in gas, oil and other natural resources industries were "sold" for about 10% or less of their real market value to the small group of Kremlin insiders who later became known as "oligarchs". In turn of the control of lucrative businesses, oligarchs were reported to generously finance the Yeltsin "family" (his actual relatives and close associates) whenever the "family" wanted too. Again, very few US Legislators or Russian pundits sounded any alarm. The grand theft of the State-controlled property by the Kremlin officials and their hand-picked "oligarchs" was called "privatization". When the reports came in about the gross violations of any civilized standard during this "privatization" (i.e. state property auctions where winners were known before-hand, ridiculously low sale prices, the wide-spread murder of competitors), it was all either dismissed or explained as "difficulties in the transition to market economy".

Yeltsin re-election in 1996 was celebrated in Washington despite the fact that Yeltsin's election campaign was given nearly monopoly in the Russian media coverage ( media then was largely controlled by Kremlin-created "oligarchs"). There was no scandal in Washington when group of Yeltsin election campaign workers were found with Xerox boxes full of money ($200,000,000 or so)--allegedly "oligarchs" donations for Yeltsin campaign. FYI, then Russian official campaign spending limit was equivalent of $1,500,000. Should such generous "donations" (better known as bribes) be the cause of alarm in Washington ? Again, I did not hear much noise about it. For a good summary on the effects of Clinton policies toward Russia, I recommend to read the following US House Report.

In the Spring of 1999, ailing and increasingly unpopular Yeltsin appointed young and little known Federal Security Service (in Russian "FSB") chief Vladimir Putin as prime-minister and named him as a successor for President. This appointment was followed in the Summer of 1999 by the series of strange apartment building explosions in Moscow and around the country. There was also an invasion of Southern Russian Republic of Dagestan by the Chechen warlord-terrorist Shamil Basayev. Putin immediately blamed the explosion on the Chechens, refused the FBI offered assistance and ordered the new invasion of separatist and lawless Chechnya. Later reports by the variety of sources suggested that explosions could have been organized by FSB itself (with Yeltsin and Putin knowledge of course) and the Shamil Basayev invasion of Dagestan was done with the help of the top Russian leadership or "Family"to create the panic in the country so the Putin could look as Russian Savior pulling Russia out of chaos and terrorism. Consider the case of Ryazan apartment buildings where group of people turned out to be FSB agents were found bringing bags of "sugar" (which was actually explosive xexogen)into the cellar. When police arrived, the agents said they were on "exercise". The MP Sergey Yushenkov and investigative reporter Yuri Shekochikhin who investigated the claims of FSB involvement in the apartment building explosions are both dead now. Yushenkov was gunned down outside of his Moscow house and Shekochikhin was found dead under unexplained circumstances. Investigations into the murder of Yushenkov and the circumstances of Shekochikhin death lead practically nowhere (surprise). Again, I did not hear any inquiry about this coming from Washington.

Now after Putin ended Yeltsin game of playing democracy and the rule of law by consolidating the state control of the Media, putting oil and gas industry directly into the state (read Putin and his associates) hands, ending popular regional elections and overseeing another bloody and nearly genocidal war in Chechnya, Washington finally started buzzing. After more then a few US shareholders were hurt by YUKOS arbitrary dismantling and the large portion of the Russian oil supply became directly controlled by the Putin's Kremlin, Washington is finally alarmed by the state of Russian Democracy. It is easy to become cynical, but maybe it's better late then never ?