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Generational Dynamics Web Log for 28-Dec-2010
28-Dec-10 News -- Russia's Putin exacts grim revenge against wealthy political opponent

Web Log - December, 2010

28-Dec-10 News -- Russia's Putin exacts grim revenge against wealthy political opponent

Israel won't apologize for Turkish deaths in flotilla raid

Russia's Vladimir Putin exacts grim revenge against wealthy political opponent

Politicians and journalists around the world are questioning the integrity and fairness of Russia's judicial system after Mikhail Khodorkovsky, former CEO of the giant Yukos oil company and political opponent of Prime Minister Vladimir Putin, was found guilty of a embezzlement and money laundering, and having already spent almost eight years in jail on a similar charge.

Khodorkovsky and his business partner Platon Lebedev are accused of stealing 218 million tonnes of oil and of laundering $7.5 billion in revenues, according to Tass.

According to the story, there is evidence that Kremlin security officials have pressured the judge in the case to return the guilty verdict. The security officials are from the Federal Security Service (FSB), the descendant of the feared Soviet KGB, in which Putin was an important official.

Secretary of State Hillary Clinton said the conviction "raises serious questions about selective prosecution — and about the rule of law being overshadowed by political considerations," according to Politico.

Clinton added, "This and similar cases have a negative impact on Russia’s reputation for fulfilling its international human rights obligations and improving its investment climate. We welcome President Medvedev’s modernization plans, but their fulfillment requires the development of a climate where due process and judicial independence are respected."

Khodorkovsky was once the wealthiest man in Russia. However, in 2003, he began funding political opponents of Vladimir Putin. The Kremlin took a number of steps in rapid succession -- jailing Khodorkovsky and nationalizing Yukos Oil Company.

Khodorkovsky's first jail sentence will end next year, but now the new conviction will extend his imprisonment for several more years -- at least past the 2012 elections. Vladimir Putin has indeed exacted a grim revenge.

In 2004, I actually followed the Yukos story closely, and wrote on it frequently.

It was in July, 2004, when I wrote "I wish we knew more about Putin's plans for Yukos," where I expressed my confusion about what Putin was doing. By the end of the year, Yukos had been dismantled and nationalized by means of the vilest series of steps imaginable.

On Monday I listened to numerous BBC analysts and read a number of news stories, and I don't believe I heard or read a single one that believes that this new conviction of Khodorkovsky is anything but raw political vengeance on the part of Putin.

Many commentators said that foreign investors are very reluctant to invest in Russia because of corruption and government interference in business, and that the new conviction of Khodorkovsky will make them even more reluctant. According to a Financial Post (Canada) analysis:

"In the years since Mr. Khodorkovsky’s arrest, a flurry of other cases of corporate bullying by the Russian government have also served to reinforce Russia’s poor investment image.
Many still remember BP PLC’s nearly decade-long clash with the Russian government over production targets, which ended in 2008 when the company abruptly left the country. Energy giant Royal Dutch Shell ran afoul of the Kremlin a few years earlier, and was eventually forced to cede its stake in two oil and gas fields in 2006. Even Swedish retailer Ikea hasn’t been immune from Russia’s bureaucratic quagmire. In 2007, the company was suddenly blocked by authorities from opening a massive store in the city of Samara. The project was accused of violating building codes and still isn’t open.
The result has been a lingering perception that the Russian government dictates business in the country. On Monday, German Foreign Minister Guido Westerwelle reinforced that idea by characterizing Mr. Khodorkovsky’s new conviction as "a step back."

The Khodorkovsky situation seems to have revealed a small rift between Putin and his protege, President Dmitry Medvedev.

During a recent television interview, Putin said that Khodorkovsky was a robber who had been found guilty of fraud and theft by a court and "should sit in prison." However, in his own television interview, Other Russia quotes Medvedev as saying, "As president I can say: neither the president nor any other person in state service has the right to express their position up to the moment the verdict is handed down."

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Prime Minister Benjamin Netanyahu said that Israel will not apologize to Turkey for the deaths of 8 Turkish citizens in the spring Gaza flotilla raid. Turkey had demanded an apology as a condition for restoring diplomatic relations. Netanyahu said he was willing to express sorrow for the deaths, but that the Israeli soldiers were acting in self-defense. Haaretz

Rhetoric on the Korean peninsula continued to harden on Monday, when South Korean President Lee Myung-bak said, "We have now been awakened to the realisation that war can be prevented and peace assured only when such provocations are met with a strong response. Fear of war is never helpful in preventing war." The North Koreans have been using extremely belligerent language for years, but the South's language has always been reasonably conciliatory, so the new language is a major change in direction. The South has also said that it plans additional military drills and exercises this week. These exercises have infuriated the North in the past. Telegraph

A grass root initiative is growing in Germany to get rid of the euro currency and return to the deutsche mark. According to one activist, "Why should we help rescue the Greeks from their sham bankruptcy? Ever since Odysseus, the world has known that the Greeks are the biggest rascals of all time. How is it even possible -- unless it was premeditated -- for this highly popular tourist destination to go bankrupt?" Spiegel

Trading in pork bellies used to be the popular image of the activities on the Chicago Mercantile Exchange. Pork belly trading was featured in the 1983 Eddie Murphy movie "Trading Places." But now, trading in the pork belly, a slab of frozen meat from which bacon is cut, has become almost nonexistent, and the CME is looking for ways to rejuvenate the pork belly market. Wall Street Journal (Access)

Historically, Tajikistan has been a Sunni Muslim country, even though the people speak a Persian language. However, during the last year, a flood of missionaries from Iran have been converting Sunni Muslims to Shia Muslims. According to one analyst, "It is sufficient to note that a year or two ago, Shiites were on the order of 11 percent of all Muslims of Tajikistan. Today this number has more than tripled to 33.4 percent." Paul Goble

(Comments: For reader comments, questions and discussion, see the 28-Dec-10 News -- Russia's Putin exacts grim revenge against wealthy political opponent thread of the Generational Dynamics forum. Comments may be posted anonymously.) (28-Dec-2010) Permanent Link
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Generational Dynamics Web Log for 28-Dec-2010 28-Dec-10 News -- Russia's Putin exacts grim revenge against wealthy political opponent

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Generational Dynamics Web Log for 28-Dec-2010
28-Dec-10 News -- Russia's Putin exacts grim revenge against wealthy political opponent