Putin adviser slams Yukos takeover as "swindle of the year"

MOSCOW (AFP) - A top economic adviser to Russian President Vladimir Putin (news - web sites) slammed the government's takeover of the main asset of the Yukos oil giant as the "swindle of the year" and warned of growing state interventionism.

In an unprecendented criticism of the destruction of Russia's top oil company by someone within the government, Andrei Illarionov accused the Putin administration of using "the money of Russian citizens" to strip Yukos of its core asset.

"This year in the category of swindle of the year, the winner is the sale of Yuganskneftegaz to a mystery company (...) and then the acquisition of this firm by Rosneft," the state-run oil producer, the ultra-free market Kremlin economic adviser told reporters.

Illarionov said that "the enigma of the year" was to know "where the money came from" for the takeover of Yukos' main production arm, which was sold in a secretive December 19 auction for 9.35 billion dollars (seven billion euros).

But he immediately answered by saying that the almost 10 billion dollars could "only have come from the state budget because no other company had the sufficient funds".

Gazprom, the state-controlled gas monopoly, had been seen as the likely winner of the forced auction, but it withdrew from the bidding because of a US legal injuction barring it from participating.

In the end, Yuganskneftegaz, a company that pumps a million barrels a day and owns 17 percent of Russia's vast oil reserves, was sold to the previously unknown Baikalfinansgroup.

Rosneft, which is to merge with Gazprom shortly into a new state-run energy corporation, subsequently announced that it had bought Baikalfinansgroup.

Analysts said that the sale, officially to pay off 27.5-billion-dollar tax claims levied against Russia's biggest oil producer, was a means for the Kremlin to reassert control of the strategic energy sector and crush a powerful political opponent, Yukos' imprisoned founder Mikhail Khodorkovsky.

The attack on Yukos and Khodorkovsky is believed to have been orchestrated by Igor Sechin, a senior Kremlin official who is part of an influential group of ex-KGB hardliners who surround Putin, himself a former spymaster.

Illarionov lamented the "destruction of the most efficient oil company in Russia" and described it as "expropriation".

The economist did not rule out that other Russian companies might suffer the same fate as Yukos.

He said Russia had abandoned the path of economic liberalism and "has moved to an interventionist model".

Comparing the effective nationalisation of Yukos to that of the Venezuelan oil sector in 1976, Illarionov predicted a slowdown in Russia's current fast growth "because of the intervention of incompetent bureaucrats in the economy."

He said the aim fixed by Putin to double Russia's GDP (news - web sites) in 10 years "is not possible in a populist and interventionist political context."

Reformist members of the Russian government have been privately aghast at the campaign of destruction against Yukos, which they have been powerless to stop.

And now other firms have come under fire as analysts warn that government officials appear to have a green light to abuse their authority and go after the private sector.

One of them is Russia's largest cell phone operators, VimpelCom, which faces 157 million dollars of tax claims that are seen as the result of a commercial dispute between the company's owners and a government minister.

Well, lets see, the constitution that is being voted on will make it a state. As for the facism, how about this: I'll allow your "founding fathers" to speak for themselves.

In their own words, the founders of the Fourth Reich tell us what they think and plan. Scary stuff when you think of the resources these guys now have. Wait till the power is totally in their hands and all of Europe is under their heel, then you'll see an end to the short work week and a massive remiliterization.

JB6

"The Federated Republic of Europe - the United States of Europe - that is what must be. National autonomy no longer suffices. Economic evolution demands the abolition of national frontiers. If Europe is to remain split into national groups, then Imperialism will recommence its work. Only a Federated Republic of Europe can give peace to the world."

Leon Trotsky (1879-1940), Russian revolutionary. Conversation at Smolny, Petrograd, 30 October 1917. Nice to see Trotsky's dream making such healthy progress 90 years later. Hasn't brought peace to the world, mind you.

"The driving role (r?le moteur) played by France and Germany, naturally we expect to exercise it for the good of the European Project."

"I have confidence in the future of Europe because I have confidence in the solidarity fo the Franco-German relationship."

"The 22nd of January shall henceforth be known as 'Franco-German Day'"

Jacques Chirac, French President since 1995. Speech at a joint meeting of German and French parliamentarians on 4th anniversary of Treaty of Versailles. Versailles, 22 January 2003.

"The future will belong to the Germans... when we build the House of Europe. In the next two years, we will make the process of European integration irreversible. This is a really big battle but it is worth the fight."

Helmut Kohl, German Chancellor 1982-1988, who presided over reunification of Germany but whose legacy was tarnished by a massive party financing scandal. Reported in Freedom Today, 1996.

"Germany, as the biggest and most powerful economic member state, will be the leader, whether we like it or not."

Theo Waigel, German politician, leader of leftist CSU and Minister of Finance 1989-1998. Father of the name 'Euro' for the currency - the French wanted to call it the Ecu but were persuade 'Euro' was more saleable in Germany.

"The Convention brought together a self-selected group of the European political elite, many of whom have their eyes on a career at European level, which is dependent on more and more integration. Not once in the 16 months I spent on the Convention did representatives question whether deeper integration is what the people of Europe want, whether it serves their best interests or whether it provides the best basis for a sustainable structure for an expanding Union."

Gisela Stuart, Labour Member of Parliament, Member of Constitutional Convention and Drafting Presidium. From The Making of Europe's Constitution, Fabian Society Pamphlet, 2003.

"The EU Charter of Fundamental Rights (ECR) will be no more binding than the Beano or the Sun".

Keith Vaz, Labour Minister for Europe, forced to resign after being dogged by sleaze allegations relating to sale of passports to dodgy Asian businessmen. Biarritz EU Summit, 2000. It has subsequently become clear that the CFR will be incorporated into any eventual European Consitution, unlike the once-popular childen's comic.

"[Italy joining the Euro at its launch] was a decision imposed from on high and the public had no choice in the matter."

Umberto Bossi (b 1943). Creator and leader of Italy's ultra-right separatist Northern League, sometime ally of Berlusconi's Forza Italia

"[The result was] disgraceful … we should never have given the vote to women and truck drivers."

Danish official working at the European Commission, on hearing the news that Danes had voted no to membership of the euro in September 2000.

"It is reasonable to ask whether such complicated and nuanced issues as the Nice Treaty ... are suitable subjects for referendums in the first place."

Independent Newspaper editorial, after the Irish refused to ratify the Nice Treaty in a referendum

"The creeping unification of Europe ... since the time of Jacques Delors [has been] managed by the bureaucrats from Brussels behind the back of the continent's population, behind the back of the citizens of individual member states"

V?clav Klaus. Second President of the Czech Republic, Former Czech Prime Minister and Finance Minister. Article in the European Journal, Dec 2003

"Europe's nations should be guided towards the super-state without their people understanding what is happening. This can be accomplished by successive steps each disguised as having an economic purpose, but which will eventually and irreversibly lead to federation."

Jean Monnet, Founder of the European Movement. Former Cognac salesman and bureaucrat at the League of Nations. 1952

"No government dependent upon a democratic vote could possibly agree in advance to the sacrifice that any adequate plan [to build the EU] must involve. The people must be led slowly and unconsciously into their abandonment of their traditional economic defences..."

Lord (Peter) Thorneycroft, Privy Councillor, Conservative Party Chairman 1975-1981. Chairman of 'Design For Europe' Committee, 1947, quoted by Bill Jamieson in Britain Beyond Europe.

"I have never understood why public opinion about European ideas should be taken into account."

Raymond Barre, Mayor of Lyons and French Prime Minister 1976 - 1981 under Giscard d'Estaing

"European Army and a European Police Force lie at the end of the road to European Union."

Helmut Kohl, German Chancellor 1982-1988, who presided over reunification of Germany but whose legacy was tarnished by a massive party financing scandal. Source unknown but widely quoted as being said in 1992. He may have hoped this would sound reassuring

"Here in Brussels, a true European government has been born. I have governmental powers, I have executive powers for which there is no other name in the world, whether you like it or not, than government."

Romano Prodi, EU Commission President. European Parliament, November 1999. Steady there, big guy - the last Italian leader who got too big for his boots ended up hanging upside down from a lamp-post with his mistress!

"The Council of Ministers will have far more power over the budgets of the member states than the federal government in the United States has over the budget of Texas"

Jean-Claude Trichet, Head of European Central Bank. The European, 13th December 1998.

And finally some true words of wisdom and warning!

"Any nation which gives up its freedom in pursuit of economic advantage deserves to lose both."

Thomas Jefferson, US President 1801-1809.
My profile has plenty of links to articles I've posted outlining just what is fascist about the EU.

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