Fri, Jan 23, 2015 - Page 9 News List

Putin’s scare tactics

Russia’s president is using lessons learned from his autocratic predecessors to instill a fear of the government, but an even bigger fear of the nation being left to fend for themselves

By Nina Khrushcheva

Illustration: Mountain People

“Every nation gets the government it deserves,” said Joseph de Maistre, the Sardinian kingdom’s diplomatic envoy to the Russian empire, about 200 years ago.

He was commenting on Russians’ deep-seated political apathy — a trait that persists to this day.

Of course, Russia is no longer an absolute monarchy as it was in Maistre’s time. Nor is it a communist dictatorship, with the likes of former Soviet Union leader Joseph Stalin using the threat of the gulag to discourage political expression. However, Russian President Vladimir Putin has learned much from the autocratic tactics of his predecessors, whereas the Russian people seem to have learned nothing.

In an opinion poll at the end of last year, 68 percent of respondents said that Putin should be “Man of the Year.” His seizure of Crimea from Ukraine in March last year, together with his refusal to bow to the Western powers that disputed the move, made him a hero among many Russians.

In fact, Putin’s efforts to recapture Russia’s former territory have overshadowed his stifling of non-governmental organizations, repression of independent media and silencing of opposition voices. Even as Russia’s economy collapses — with the ruble having lost more than half of its value against the US dollar since June last year, interest rates rising to 17 percent and inflation reaching double digits — Putin retains an 85 percent approval rating.

Russians should be demanding a solution to their nation’s economic troubles, not praising the leader who caused them. However, Putin, an ex-KGB officer, possesses a dictator’s shrewdness. He knows that centuries of tight government control have made Russians obedient. They might fear the government; but they fear being left to fend for themselves even more.

Midway through last month Putin held his annual dinner with the oligarchs — a feast in a time of plague, so to speak. Forty industrial and financial leaders (most of whom manage Kremlin-affiliated firms) attended the event to gain — and give — reassurance that, together, they and the government would weather the crisis.

At the dinner, Putin reiterated his promise to protect the oligarchs’ fortunes from US and European sanctions. Specifically, he pledged to apply the so-called Rotenberg Law, named after Arkady Rotenberg, a financier who was forced in September to surrender US$40 million in assets to Italy’s government. The law obliges the Kremlin to compensate oligarchs for any foreign assets that they lose as a result of Western sanctions.

These statements built upon a promise Putin made in an interview earlier in the month. If Russian businesspeople repatriate their offshore accounts, their financial indiscretions will be forgiven and forgotten.

Relying upon such promises would be financial suicide. Just a few months ago, Putin assured everyone that Russia’s economy would weather the European and US sanctions easily. Likewise, during the 1998 financial meltdown, Russian oligarchs lost big — and most never recovered. Clearly, Russia’s government cannot be trusted to safeguard anyone’s wealth, with the possible exception of that of its own members.

Yet refusing the Kremlin’s embrace is equally destructive. After all, in Putin’s Russia, political dissent brings financial ruin. In 2003, Russia’s wealthiest oligarch Mikhail Khodorkovsky — a vocal advocate of democratization and tireless critic of Putin — was imprisoned on trumped-up charges of fraud and tax evasion, and his Yukos Oil was driven to bankruptcy, broken up and sold off to Kremlin cronies.

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