The Quality of Freedom: Khodorkovsky, Putin and the Yukos Affair

445 Pages·2009·2.77 MB·English

by  Richard Sakwa

THE QUALITY OF FREEDOM
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The Quality of Freedom
ff
Khodorkovsky, Putin, and the Yukos A air
RICHARD SAKWA
1
3
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ISBN 978–0–19–921157–9
1 3 5 7 9 10 8 6 4 2
Contents
ListofTables ix
Acknowledgements x
Preface xii
1. Introduction:FreedomandProperty 1
Logicsofmodernity 2
Dimensionsoffreedom 5
Power,property,andthemarket 14
Anewdualstate 14
Freedomandproperty 16
Theculturalrevolutionofproperty 20
Varietiesofcapitalism 24
Embeddingcapitalismanddevelopment 24
Liberalismandfreedom 27
2. TheBirthandTransformationofYukos 30
Khodorkovsky:FromKomsomolactivisttooligarch 31
Background 31
Menatep:Frombankingtoindustry 33
EstablishmentandprivatizationofYukos 40
Yukos:Consolidationandcrisis 45
Consolidationanddevelopment 46
Theoligarchsareborn 52
Mergermania 56
The1998partialdefault 59
Thelosertakesthefall 61
Yukostransformed 62
Arevolutioninproduction 63
Corporatetransformations 67
Personalissues 70
3. TheStateandtheOligarchs 74
Pluraliststatetoregimeconsolidation 75
Putin’spolicyof‘equidistance’ 78
Muddywaters 79
Businessandstateinthenewdispensation 84
Betweenassaults 86
Fromequidistancetosubordination 88
‘TheStateandtheOligarchs’ 89
Therevengeofthestate 92
Aninteractionmodel 94
vi Contents
ModelsoftheYukosaffair 95
Theideologyofstatism 96
Thepoliticaltheory 99
Thefactionaltheory 101
4. WhyYukos? 108
Astatewithinastate 108
Independentpoliticalentrepreneurship 112
Khodorkovsky’sdefection 113
Partypolitics 115
Thereorganizationofpower 118
Foreignpolicyaspects 121
Yukosinsociety 123
OpenRussia 123
Philanthropyandpatriotism 126
Questionsofeconomicpolicy 128
MergerofYukosandSibneft 129
Policyconflicts:Pipelinesandmarkets 133
Rosneft,Gunvor,andtheemergenceofananti-Yukos
‘politburo’ 139
Personalaspects 142
Facetoface:19February2003 142
Personalrelations 144
5. TheAssaultAgainstYukos 148
Theassaultbegins 148
Firstarrests 149
Khodorkovsky’sresponse 151
Khodorkovsky’sarrest 157
Firstreactions 158
Politicalfallout 161
Murkymatters 164
Parisandbeyond 165
Avisma,Valmet,andshellcompanies 168
TheattackonYukos 170
YukosafterKhodorkovsky 171
Taxmatters 178
The‘scamoftheyear’:ThesaleofYuganskneftegaz(YNG) 184
6. KhodorkovskyGoestoJail 188
Yukosinvestigated 188
Pre-trialdetention 189
ThecaseagainstKhodorkovskyandhisassociates 193
Criminalcharges 194
TheApatitcase 195
Pichugin:TheTambovcasesandValentinaKorneeva 196
Contents vii
PetukhovandtheNefteyuganskcase 199
TheEastPetroleumcase(YevgenyRybin) 203
TheMitraandLesnoicase 204
Khodorkovsky’strial 206
‘Basmannyjustice’ 207
Reactiontothetrialandverdict 213
Appeals 218
Inthepenalcolony 222
TheKrasnokamenskprisoncolony:FromRokossovsky
toKhodorkovsky 223
Lifeasaprisoner 226
7. ThereWillBeBlood 231
Thebroaderassault 231
TheTemerkocase 232
TheBakhminacase 234
VasilyAleksanyan 235
Othercases 237
TheendofYukos 239
Bankruptcy 240
Twistingtheknife 245
Civilproceedings 246
Theattackcontinues 248
Furthercharges 249
Internationalappealsandrulings 254
Problemsofstateandlaw 257
Internationalcommentary 257
Lawandpower 262
8. FromOligarchto‘Dissident’ 264
Businessandthestate 265
ThecrisisofRussianliberalism 268
Featuresofthecrisis 269
Khodorkovskyaspoliticalphilosopherandcommentator 274
Propertyandfreedom 278
Prisonandtheworld:Propertyandfreedom 278
Firstinterviewfromjail 280
FreedomtheRussianway 282
Theleftturn 284
‘Freedomdoesnotbringhappiness’ 285
Realismorfatalism 287
Anotherleftturn 290
Civilsocietyanddevelopment 291
LeftTurn2 293
Theworldin2020 296
viii Contents
Freedom,themarket,andsovereigndemocracy 297
TheambiguitiesofRussianliberalism 298
CommentatoronRussianpolitics 300
9. PropagandaandPublicOpinion 304
Thestruggleforheartsandminds 305
Mediaandpropaganda 305
Publicrelations 308
Mediaandmartyrdom 311
Publicopinion 312
Russia’simageandforeignpolicy 314
Yukosandorangetechnologies 314
Intheinternationalarena 318
10. PoliticalandMoralEconomy 322
Buildingnationalchampions 322
Rosneftandtheturntostatism 323
GazpromandplannedmergerwithRosneft 326
Rosneftgoesglobal 329
Thestateandtheenergysector 332
TheenergysectorandRussia’seconomy 333
TheeconomicconsequencesoftheYukosaffair 334
Thedualeconomy 338
Continuingconsolidation 340
Anewmodelofpoliticaleconomy 344
Deprivatization 344
Towardsanewembeddedcapitalism 348
Meta-corruption,oraneconomyofrents 351
Amoraleconomy 353
11. PolityandPower 357
Politicalconsequences 358
Resourcesandpower:Theoilcurse? 358
Thepoliticalsystemandcivilsociety 365
ThedebateonfreedominthewakeofKhodorkovsky’sarrest 369
An‘energysuperpower’ 370
Energyimperialism? 371
Resourcenationalism 376
12. Conclusion:AQuestionofInterpretation? 380
TheYukoscase:Rightandwrong? 380
Classandstatepower 387
Fateandfreedom 392
Bibliography 397
Index 411
List of Tables
2.1.ThegrowthofYukos 50
2.2.Yukosoilproduction,1998–2005 64
5.1.Yukoscapitalization 172
5.2.Theofficialincometaxrateandactualtaxationofselected
companies(in%) 180
5.3.Budgetrevenuesfromtheoilandgassector 182