Foreign Affairs: Putin’s Plutocrat Problem

1st March 2000

Foreign Affairs describes how Putin had to rein in “a dangerous posse of plutocrats riding roughshod over Russia” at the start of his premiership in order to press ahead with his difficult reforms.

The article provides an account of how the oligarchs used transfer pricing to sell oil to parent companies below market prices, before then being resold on the world market at a prevailing price. Through this method Yukos siphoned off some $800 million over 36 weeks, in one case. This pillaging was impoverishing whole regions of Russia.

Read the article on the Foreign Affairs website (Subscription needed)