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New Documentary Delves Into Dark Side Of Putin's Rise

By Tony Wesolowsky
December 30, 2015

ARussian filmmaker is urging viewers to share his new documentary focusing on the less savory side of President Vladimir Putin’s rise to power, hoping to reach the widest possible audience.
"I call on all viewers out there to download and distribute the video so viewing of it can’t be blocked," said Valery Balayan, the creator of Khuizmisterputin.
The film, chronicling Putin’s ascent from the St. Petersburg mayor’s office to the presidency, was premiered for media in the Ukrainian capital, Kyiv, on December 29. It comes on the heels of fresh reports detailing allegations of corruption and links to organized crime.
"My task was to make an informative and entertaining film, to explain some things to people in a clear way. To explain that Putin began his career with thievery -- only on the scale of Leningrad, St.Petersburg -- and that he hasn’t changed," said Balayan, who has made more than 60 documentary films and has worked for RFE/RL.
"A person doesn’t change, just develops. [Putin] has developed to such a degree that a corporation of [former KGB officers] and representatives of the criminal underworld has taken control of Russia," Balayan said.
The film's tongue-twister title is a Russian transliteration of "Who Is Mr. Putin?" but also includes a play on a vulgar Russian word for the male sexual organ.
Balayan said that, for the most part, filming went smoothly -- until he and his team went to Ozero (Lake), a dacha cooperative that Putin and a group of business, political, and security acquaintances founded in 1996.
Their presence there apparently raised alarm bells.
"What you see in the film is just the tip of the iceberg, because there were security guards everywhere. They took video of us, filmed the car I arrived in, its license plate. They were making calls, reporting something or other," Balayan said.
"So, the four of us working on the film decided not to recount anything from that incident so as to avoid any information leaks," he said. "We understood that our subject was such that it was better not to attract any attention. And we were able to keep it quiet despite the fact that our work took eight months."
The film begins in the 1990s when Putin, after 16 years serving in the KGB, had a short stint in the mayor’s office in St. Petersburg, his hometown. Balayan said that it explains the future president’s involvement in barter deals that, he said, appear to have lined the pockets of Putin and his associates while bringing little benefit to the city itself.
The film focuses on a 1991 deal in which previous accounts have accused Putin of understating prices and permitting the export of metals valued at $93 million in exchange for foreign food aid that never made it to shop shelves.
"The most well-developed bandit-bureaucrat criminal system [in Russia] was in St. Petersburg," local journalist Vladimir Ivanidze recounts in the film.
Suspicions of connections with organized crime have dogged Putin for years. Such charges, however, have gained fresh momentum in recent weeks.
In November, the Russian journal The New Times published a summary of the findings of a Spanish probe into Russian organized crime that includes claims reaching all the way to Putin himself.

With reporting by Dmitry Volchek of RFE/RL’s Russian Service

Russia: Millions in Global Drug Trade Profits Denounced

Moscow, Dec 16 (Prensa Latina) The barons of international drug trafficking invested about three billion dollars in the past 15 years to bolster the illicit drug trade in Afghanistan, Africa and Latin America, certified today the Russian Federal Drug Control Service.
The director of the agency, Viktor Ivanov, said during a panel on the transnational organized crime in the Latin American Institute of the Academy of Sciences, that the quantity of product and related investments is comparable to Russia's Gross Domestic Product in 2014, related to the purchasing power parity, amounting to about 3.5 billion dollars.
Ivanov identified two major drug production centers in the world: the monopoly of Afghanistan in the smuggling of heroin, and South America's, related to cocaine, while the United States and Europe are the first destinations of the drug use on the planet.
The international organized crime, as stated the so-called Russian anti-drug tsar, controls the trafficking of hallucinogens to Africa, Central America and Central Asia, with huge investments and profits of one of the most lucrative businesses, next to the arms sales, smuggling of endangered species, and human trafficking.
Ivanov warned on the occasion of the presentation of the collective monograph "Transnational organized crime and the state of confrontation in Latin America", that the production of cocaine in the region grew 100 times in half a century, from 10 tons in the decade of 1950 up to a 1,030 in 2006.
As for Russia, the head of the Federal Drug Control Service said that the supplies of drugs to his country rose 15-30 percent per year. 1,2 tons of cocaine were confiscated in 2014 alone.
The volume of confiscated synthetic drugs (known here as smoking mixtures) increased by 200 times during the last decade, said Ivanov.

According to the official, these drugs cause adverse effects on the psyche of the consumers, which can lead to death (as attested by statistics) and committing serious crimes such as murder, under the influence of dangerous hallucinogens.

From Communist Gold To Kremlin Power: Spanish Prosecutors Outline Russia's Captive State

Anticorruption campaigner Aleksei Navalny has released a film that accuses Prosecutor-
By Viktor Rezunkov and Robert Coalson

December 17, 2015

ST. PETERSBURG -- Suspicions of connections with organized crime have dogged Vladimir Putin since his stint in the St. Petersburg mayor's office in the early 1990s.
 The accusations have gained new momentum in recent weeks with two important developments. On December 1, opposition politician and anticorruption campaigner Aleksei Navalny released a film expose on Prosecutor-General Yury Chaika and his sons, outlining circumstantial evidence of ties to organized crime and abuse of the prosecutor's office for financial gain.
 The film has garnered more than 3.5 million views and it is becoming increasingly hard for the Kremlin to ignore, despite the fact that Chaika is part of Putin's closest inner circle.
 In November, the journal New Times published a summary of the findingsof a Spanish probe into Russian organized crime that includes claims reaching all the way to Putin himself. The nongovernmental Open Russia organization later published the entire, more than 400-page Spanish prosecutor's report in Russian. The report was submitted in May and a copy reached the media in June.
The Spanish report centers on Gennady Petrov, who is believed to be the head of a prominent ring known as the Tambov organized-crime group, and illuminates his alleged ties to Putin and members of Putin's inner circle that stretch back to their days in St. Petersburg. Petrov got his start as a co-owner of the Bank Rossia in 1998-99, together with close Putin friends Nikolai Shamalov, Viktor Myachin, and Yury Kovalchuk. All three were founding members of the Ozero collective, which was formed in 1996 and included Putin.
 "The criminal organization headed by Petrov managed to achieve a clear penetration of the state structures of his country, not only with the lawmaker [Vladislav] Reznik but with several ministers," the report says.
Telephone Transcripts
The Spanish report includes transcripts of alleged telephone calls between Petrov and other organized-crime suspects in Spain and officials and businesspeople in Russia.
 "From this report, it emerges that it was not Vladimir Putin who placed many people in leading [government] positions, but bandits who were directly connected to the Tambov criminal group," said Andrei Zykov, a retired law-enforcement lieutenant colonel and a former senior investigator for the Northwest Federal District branch of the Investigative Committee who specialized in corruption and serious economic crimes. The district includes St. Petersburg.
 "For example, in 2007 Aleksandr Bastrykin was named head of the Investigative Committee. Gennady Petrov and other members of the gang just call him Sasha," Zykov told RFE/RL -- referring to a short name for Aleksandr that implies a close relationship . "They are constantly on the phone with him. 'Sasha' himself calls Gennady Petrov and thanks not President Putin, but Gennady Petrov for the fact that he was appointed chairman of the Investigative Committee."
 "If such important posts are occupied by people appointed by a criminal group and not President Putin, then it is definitely not clear what is the 'tail' and what is the 'dog' in this situation," Zykov concluded. "Who is really running our government?"
 Zykov said the Spanish prosecutors documented 78 telephone conversations between Petrov and Nikolai Aulov, a senior Russian law-enforcement official who is now the head of the Interior Ministry branch in the Central Federal District. Of those, 74 were initiated by Aulov himself.
 "Gennady Petrov gives orders to General Nikolai Aulov, and he reports back to Gennady Petrov," Zykov said.
Petrov was arrested during a raid on his villa in Majorca in 2008 in a sweep that also netted 20 other suspected members of the Spanish branch of the Tambov gang. However, he was later allowed to travel to Russia and has been living peacefully in St. Petersburg ever since.
 "Today the main figures in the Spanish report are living in Russia without any problems," Zykov said. "And they are doing fine.”
Network Of Companies
He said that Petrov lives in a building in which apartments are also owned by presidential aide Vladimir Kozhin and a pair of brothers who were both members of the Ozero collective -- former Russian Education Minister Andrei Fursenko and his brother Sergei Fursenko, a businessman and official at state-controlled gas giant Gazprom.
 “His son, Anton, is a businessman," Zykov said of Petrov.
 Spanish prosecutors allege that Petrov and 26 other suspects, including some Spanish citizens, created a network of companies and other structures in Spain beginning in the mid-1990s through which hundreds of millions of dollars were allegedly laundered and other criminal activities -- including drugs and arms smuggling -- were carried out.
 One of the suspects named in the report is Vladislav Reznik, a State Duma deputy from the ruling United Russia party and deputy chairman of the Finance Committee in the lower parliament house. He is from St. Petersburg as well, and in 1989-90 he served as deputy chairman of Bank Rossia. He is also the head of the Rus insurance company, which was a founding partner of the bank, together with the Leningrad Oblast branch of the Communist Party of the Soviet Union. Prime Minister Dmitry Medvedev worked for Reznik at Rus in the mid-1990s.
 Zykov said the Spanish report makes a strong case that Bank Rossia was largely a mechanism for funneling money from the Soviet Communist Party to criminals and figures connected with the Ozero collective.
 "Mr. Reznik is tied to this bank," Zykov said. "Not long before the events of 1991 [the collapse of the Soviet Union], large sums of money were poured into that bank -- about 500 million rubles. The Spanish investigators draw attention to the idea that it is completely possible that Gennady Petrov is living on the money of the Soviet Communist Party. It turns out that all these years we've been looking for the Communist Party's money and we didn't notice Bank Rossia right in front of our noses. And those people who privatized that bank took loans from that very bank in order to buy the shares in that bank. That bank was de facto stolen from the state. Its money ended up in the hands of a criminal organization."
 The Ozero group included eight people: seven businessmen with scientific or engineering backgrounds and Putin, a political figure with a legal education and a background in the KGB.
 "The dawn of the activity of the so-called Tambov group came with the administration of [St. Petersburg Mayor] Anatoly Sochak and his deputy, Vladimir Putin," Zykov said.

 "[St. Petersburg journalist] Nikolai Andrushchenko remembered how at the beginning of perestroika, Anatoly Sobchak was considered an irreproachable liberal professor," Zykov said. "But after he got close to Vladimir Putin and Viktor Zolotov [a former Sobchak bodyguard who is now head of the Interior Ministry's internal forces], Anatoly Sobchak changed. He developed a taste for the luxurious life. He began to make bargains with his conscience."

Several Russian Defense Ministry officials allegedly involved in organized crime

MOSCOW, December 22 (RAPSI) – A criminal case was launched against an organized criminal group that was allegedly operating with the involvement of Russian Defense Ministry officials from the department of government contract audit, the Moscow City Court documents read.
A head of the department, Dmitriy Nedobor, is under investigation. Nedobor is accused of attempting to take a grand bribe; he is currently detained, according to court documents.
Earlier, the Kommersant newspaper reported that Nedobor became a head of the department in January, 2015. Before that he was an employee of the Finance Ministry where he worked for ten years. Nedobor held a position of a head deputy at the military contract budget policy department.
According to Kommersant, military authorities launched a bribery case on October 15 against an organized criminal group that was trying to take bribes. Investigators believe that this group consisted of Defense Ministry officials and criminals from other spheres.
This case was merged with a case against Nedobor. The Moscow City Court upheld the decision of a lower court which placed Nedobor  in detention for two months. On December 10, the detention of Nedobor was extended for three more months.
The department of government contract audit conducts expertize of government contracts’ expenses, sets their prices, analyzes the prices of the bought equipment.