When once all enterprises belonged to the state and were supposed to be equally owned amongst all citizens, they fell into the hands of a few, who became immensely rich. Stocks of state-owned enterprises were issued, and these new publicly traded companies were quickly handed to the members of Nomenklatura or known criminal bosses. For example, the director of a factory during the Soviet regime would often become the owner of the same enterprise. Under the governments cover, outrageous financial manipulations were performed that enriched the narrow group of individuals at key positions of the business and government mafia. Many took billions in cash and assets outside of the country in an enormous capital flight. The largest state enterprises were controversially privatized by President Boris Yeltsin and subsequently owned by insiders for far less than they were worth. Many Russians consider these infamous oligarchs to be thieves.
Posted on: Tue, 05 Nov 2013 20:09:49 +0000
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