I realize most of the soccer fans here, probably don't care about Mr. Abramovich's business dealings, nor Russian politics, economics, etc. But, as a concerned Chelsea fan I have been bouncing around the Internet trying to get a better handle on Mr. A's business. As I read it (and this is from Pravda, which is also reporting that a UFO just crashed into the Andes, so take it with more than a grain of salt): Abramovich is in the process of brokering a deal between Mikhail Khodorkovsky -- the Russian Oligarch who was arrested last fall for tax evasion -- and the Putin government. Putin needs the charges against Mikhail Khodorkovsky dropped and for everything to appear fine. This, so as not to scare off any remaining Western investors who might want to throw money at Russia or Russian companies. But, Khordorkovsky tried to get involved in politics, so Putin wants to make sure he doesn't go unpunished. Abramovich might be working as an intermediary here, getting the charges against Mikhail Khodorkovsky reduced and getting Putin (or the Russian government, or both) some of Khordorkovsky's billions. So Khordorkovsky is still a billionaire, though perhaps just barely, and Abramovich regains control of the Sibneft stock he sold and traded to Yukos, perhaps having to payback some of the money he was paid for the stock ($3 billion). Note, for those who are saying that Abramovich is worth $3-4 billion. This, as near as I can tell, is only his hard currency assets and doesn't include the Yukos stock or other holdings. I believe he sold part of an Aluminum company, but still holds stock there as well, and of course Chelsea. Economists are predicting that Russia, especially the far east where Abramovich is governor, will become the largest oil producing state in the world by 2010. So, if the stakes these guys are playing at seem high now, they are only going up. I would be glad to hear from other Chelsea fans who can confirm or deny some of these stories. I think its very interesting that Abramovich, for all the media swirl around him, doesn't seem to give a whole lot of interviews. Does anyone have access to any interviews with Abramovich? Or can point me to them on the Internet? Thanks.
http://www.themoscowtimes.com/stories/2004/03/02/041.html It just gets better for Abramovich, according to this article. He could end up owning Yukos.
Thanks for the link. It looks much better than Pravda. Here is a similar link that estimates Abramovich's worth at just over $10 billion, about double his estimated value last year. Just hope Bill Gates doesn't buy Leeds. http://www.themoscowtimes.com/stories/2004/03/01/003.html
Any real information on this is going to be very hard to come by for several reasons. One, Russian tycoons are extremely vague about the full value of their assets, and Abramovich especially so. Khodorkovsky is easier to value because he was looking for foreign investment, so he had to be a lot more open with his assets. Roman, however, is even more in the shadows. He's also notoriously publicity unfriendly, and is not a media whore in the slightest. For a long time, most Russians didn't know who he was. If you're looking for a sort of overall view of this, The Oligarchs, by David Hoffman is a good book. However, there's nothing on Roman for the simple reason that he was still in the shadows as late as a few years ago. If you're looking for a very different slant, feel free to try www.exile.ru Everything there MUST be taken with a huge grain of salt, but they get a decent feel for the younger generation "man on the street" view. Even if it is intersperced with stories about getting hookers whlie on speed. And they're not big fans of the oligarchs. If you want anymore info, feel free to PM me.
The Other Shoe Falls http://www.themoscowtimes.com/stories/2004/03/04/044.html It would appear that Putin and his new tax czar cum prime minister have decided that $1 billion is a nice round number for Abramovich to payback to the state. Not really a bad deal for Abramovich, if he is then free and clear, and controls Yukos and Sibneft. What would be brilliant politically for Abramovich, would be to agree to pay the tax bill, thereby getting his friend Mr. Khodorvosky off the hook, and apparently legitamizing Putin's money grab. Of course, one would need to be sure the Kremlin wasn't going to just keep coming back for more which I am afraid is inevitable. I don't see how Abramovich will be able to maintain control, without bringing in some influential partners (IE. helping friends of Putin).
"In a recent probe, the Audit Chamber charged that the company had lowered its tax payments to the federal budget by 10 billion rubles in 2001 and 2002, but it also conceded that the schemes were legal at the time." So these are retroactive adjustments - I'm fine with that, really. I highly doubt they're going to have to be paid instantaneously. And there's no hint that what Roman did was actually illegal, which is what my only worry is. Roman can pay this without too many worries - he still controls a ridiculous amount of stock and other investments. That Fradkov is being appointed the new PM is not good news imho - grubby little bureaucrat who'll do Putin's whim. 101er - I'm not too sure that Putin is necessarily going to ask Roman to share his spoils, rather to limit his fiscal audacity and to stay away from power. Putin isn't venal, really, just power hungry. He's not out to rob the country like Yeltsin (when he was sober) and his cronies were. So long as Roman stays quiet, I think this will blow over.
http://news.bbc.co.uk/2/hi/business/3533679.stm This, I'm not that happy about, since its the second demand for back taxes. However, its a good thing Roman has enough money to pay for this, and that he has immunity as the governor of Chukotka
Is this a novel by.... Graham Greene, Ian Fleming, John LeCarre, or reality? http://www.themoscowtimes.com/stories/2004/03/05/002.html Mysterious Russian billionaire buys glamour London football club. His former business partners start ending up in jail, disappearing or dead. Is he at the center of the plot, or the next potential victim? And what of the new iron willed leader of the Kremlin? He might still take down an English football club owner, but can he touch the Champion of the Champions' League? Will one Jimmy Floyd Hasselbaink goal save the free world or push Russia into economic chaos? And what will happen to the fan who asks too many questions? Find out in "Wrath of the Lions"
more news http://www.themoscowtimes.com/stories/2004/03/12/001.html While I'm not taking bets, I would say odds are that either our man Abramovich is going to make out like an oligarch from this, or he is going down with the whole Yukos/Sibneft ship. I wish I knew more because in my mind right now its a toss up whether Chelsea's Sugar Dadski will have bought Ronaldo, Beckham and Totti by next August or be out of business.