Londongrad: From Russia with Cash; The Inside Story of the Oligarchs. Mark Hollingsworth
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СКАЧАТЬ on winning prizes to get it. He was awarded the prestigious Lenin Komsomol Prize (an annual Soviet award for the best works by young writers in science, engineering, literature, and the arts) and then tried but failed to win the even more illustrious State Prize. According to Leonid Boguslavsky, a former colleague at the Institute, his dream was to win the Nobel Prize.

      In 1991 Berezovsky left academia and was appointed a member of the Russian Academy of Sciences, an achievement he remains proud of to this day. He later boasted that there were only eight hundred members of the Russian Academy of Sciences and that even Leonid Brezhnev had wanted to be among that number.

      Berezovsky married Nina Vassilievna when he was twenty-three. Within three years the couple had two daughters - Elizaveta and Ekaterina, both now in their thirties. Despite his academic achievements, Berezovsky initially had to scrimp to buy winter tights and school exercise books for his children. Perestroika offered him escape from his straitened circumstances. His first scheme involved selling software he had developed to the State Committee on Science and Technology. ‘We convinced them that it was a good product, and we sold tens of thousands of copies of this software. And those were the first millions of roubles that we earned, and a million roubles was a whole lot,’ he told his audience at the Frontline Club.

      In 1989 Berezovsky turned to the automobile industry. ‘They stopped paying my salary, so I started a business,’ he recalled. ‘Every Russian had two wishes - for an apartment and a car. The women generally had the last say on the apartment; so I went into cars.’5 Initially, this involved selling second-hand Mercedes imported from East Germany. Then, taking advantage of the new freedom to travel, he went to West Germany. There he bought a used Mercedes, drove it back through almost non-existent customs, and sold it for three times what he had paid for it.

      But the real source of Berezovsky’s early wealth came from exploiting his connections, gained through his academic work, with the Soviet Union’s largest car manufacturer and producer of the Lada, the AvtoVaz factory based in the industrial city of Togliatti. Off the back of his friendship with the factory’s Director, Vladimir Kadannikov, Berezovsky founded a company called LogoVaz, which took over responsibility for selling the Ladas. The effect was to separate production from sales in a way that maximized the profits from the business for Berezovsky and his partners. It was perfectly legal and it was a strategy widely deployed by directors of state companies and the new entrepreneurs at the time.

      Berezovsky also went on to establish the country’s first chain of dealerships for Mercedes, Fiat, and Volvo, which he later referred to as ‘a complete service, with workshops, showrooms, and credit facilities. Really, we created the country’s car market. There was no market then; people won cars in lotteries or for being “best worker” or they applied and stayed on a waiting list for years.’6

      In relation to that waiting list, Russians have a joke about the long delays of the period. Vladimir has been waiting for six years to buy his own car, when he is suddenly summoned to the local ministry office. ‘I have good news for you,’ says the clerk. ‘Your car will be delivered to you in five years from today.’

      ‘Wonderful,’ says Vladimir. ‘Will it come in the morning or the afternoon?’

      ‘Why, what difference does it make?’ responds the perplexed clerk.

      ‘Well,’ answers Vladimir, ‘I have already arranged for a plumber to come that morning.’

      The dealership chain was created at a time when the automobile industry was rife with organized crime and protection rackets. Berezovsky’s Moscow dealership was targeted by Chechen gangs, which also controlled the production lines at AvtoVaz. Berezovsky, at times personally a target of the gangs, has always denied any mafia connection. In September 1993 his LogoVaz car parks were attacked three times and his showrooms bombed with grenades. When his Mercedes 600 sedan was blown up nine months later, with Berezovsky in the back and his chauffeur killed, LogoVaz issued a statement blaming ‘forces in society that are actively trying, by barbarically criminal means, to keep civilian entrepreneurship from developing in this country.’

      I can tell you right here and now that not a single oligarch has bowed to the Mafia. Oligarchs themselves are stronger than any mafia, and stronger than the government, to which they have also refused to bow. If we are talking of the visible tip of the iceberg, not the part of the iceberg concealed behind the surface or in the dark, I haven’t bowed to the government either.7

      By 1993 Berezovsky had already built an extensive business empire. One of his new enterprises was the All-Russian Automobile Alliance. Owned by various companies but headed by Berezovsky, ARAA promised the production of a ‘people’s car’, to be produced by AvtoVaz in collaboration with General Motors in the United States. On the back of a huge advertising campaign, it offered bonds in the scheme and the promise of cheaper cars, cash redemption, and a free lottery once the new production line was up and running. Wooed by the ‘get-rich-quick’ promise, more than 100,000 Russians bought $50 million of shares in the project. But when General Motors backed out of the scheme and it collapsed, thousands lost their money.

      By now Berezovsky had acquired a younger, second wife, Galina Becharova. They lived together for several years before being married at a civil ceremony in Russia in 1991. They had a son, Artem, and a daughter, Anastasia. Although they separated three years later, they never divorced. Berezovsky sent his two daughters from his first marriage - Elizaveta and Ekaterina - to Cambridge University.

      By 1995 AvtoVaz had terminated the LogoVaz contract. The ambitious oligarch turned his attention from cars to planes, lobbying to install his business associates in key managerial positions in the state-owned airline, Aeroflot. Thanks to his growing influence at the Kremlin, he ensured that two of his intermediary companies based in Switzerland - Andava and Forus - provided Aeroflot with financial services. This gave Berezovsky huge influence over the company.

      Much of Berezovsky’s business ascendancy was based on his Kremlin connections and personal friendship with President Yeltsin. Since coming to power as Russia’s first democratically elected leader following his resistance against the hardliners’ putsch of 1991 (it had toppled Gorbachev and was bent on restoring a Soviet-style dictatorship), Yeltsin seemed to relax. But gradually he became increasingly impatient, drank more, and appeared ever vulnerable to the solicitations of sycophants and businessmen, especially as he distrusted the old KGB machine.

      Berezovsky’s relationship with Yeltsin was cemented by his shrewd offer to finance the publication of the President’s second volume of memoirs, Notes of a President, in 1994, arranging for royalties to be paid into a Barclays bank account in London. According to one account, before long, the President was complaining that the royalties were too low. ‘They [the ghostwriter, Valentin Yumashev, and Berezovsky] understood that they had to fix their mistake,’ claimed General Aleksandr Korzhakov, former KGB officer and Yeltsin’s closest friend and one-time bodyguard. ‘They started filling Yeltsin’s personal bank account in London, explaining that this was income from the book. By the end of 1994, Yeltsin’s account already had a balance of about $3 million.’8

      A grateful Yeltsin ensured that Berezovsky became part of the Kremlin inner circle. Already a multi-millionaire, he was now well placed to benefit from the next wave of state sell-offs. In December 1994 Yeltsin signed a decree that handed over a 49 per cent stake in ORT, the main state-owned television station and broadcaster of Channel One, primarily to Berezovsky, without the auction required by law. The remaining 51 per cent remained in state hands. Berezovsky paid a mere $320,000 for the station. As most Russians get their news from the television, this also provided Berezovsky with a vital propaganda base for dealing with the СКАЧАТЬ