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Business and Politics in the Russian Regions

2010; Taylor & Francis; Volume: 26; Issue: 1 Linguagem: Inglês

10.1080/13523270903522845

1743-9116

Elena Chebankova,

Economic and Technological Developments in Russia

Abstract By the end of Putin's first term in office, Russia's regional authorities and representatives of large corporations had established effective non-institutional relationships. In response to these dynamics, the Kremlin launched a range of policy initiatives aimed at formalizing the political dialogue between the two sides and making their unofficial interactions less mutually beneficial. With the exception of changes that took place in the regional electoral systems, such policies have been predominantly borrowed from well-functioning Western models. However, it is clear that the political style and the context within which such ideas have been implemented have subverted the initial intentions and led to the emergence of alternative, and at times more sophisticated, forms of relational informality. The relationship between business and the Russian state continues to evolve, and depends on the intangible factors of culture and style as much as on institutional structures and rules. Notes Rostislav Turovskii, ‘Gubernatory i oligarkhi: istoriya otnoshenii’ [Governors and Oligarchs: The History of Relations], Moscow Centre for Political Technology, 26 Feb. 2001; Robert Orttung and Peter Reddaway, The Dynamics of Russian Politics: Putin's Reform of Federal–Regional Relations (Oxford: Rowman & Littlefield, 2004); Yakob Frukhtman (ed.), Regional'naya elita v sovremennoi Rossii [The Regional Elite in Contemporary Russia] (Moscow: Fond Liberal'naya Missiya Press, 2005); Natal'ya Zubarevich ‘Prishel, Uvidel, Pobedil? (Krupnyi biznes i regional'naya vlast’)' [I Came, I Saw, I Conquered? 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Hanson (eds.), Political Innovation and Conceptual Change (Cambridge: Cambridge University Press, 1989), pp.164–7. Kharkhordin, Main Concepts, pp.14–15. Ibid., pp.50–51; Nikolai Berdiaev, Istoki i smysl russkogo kommunizma (Paris: YMCA Press, 1955); Nicolai Petro, The Rebirth of Russian Democracy (Cambridge, MA: Harvard University Press, 1995), p.156. James L. Gibson, ‘The Russian Dance with Democracy’, Post-Soviet Affairs, Vol.17, No.2 (2001), pp.101–28; Timothy Colton and Michael McFaul, ‘Are Russians Undemocratic?’, Post-Soviet Affairs, Vol.18, No.2 (2002), pp.91–121; Stephen Whitefield, ‘Culture, Experience, and State Identity: A Survey-Based Analysis of Russians, 1995–2003’, in Whitefield (ed.), Political Culture, pp.125–47. ‘Putin prizval oligarkhov k sotsial'noi otvetstvennosti’. Sergei Litovchenko, Doklad o sotsial'nykh investitsiyakh v Rossii za 2004 god [Report on Social Investments in Russia for 2004] (Moscow: Assotsiatsiya Menedzherov Rossii, 2004), p.9. ‘Korporativnaya sotsial'naya otvetstvennost’ v Rossii: teoriya i praktika' [Corporate Social Responsibility in Russia: Theory and Practice], Vestnik Soveta Federatsii, No.26 (278) (2005), p.16. Litovchenko, Doklad o sotsial'nykh investitsiyakh, p.10. Informatsionnaya otkrytost' politiki rossiiskikh kompanii [Informational Openness in the Policies of Companies of Russia] (Moscow: Assotsiatsiya Menedzherov Rossii, 2004), p.10. Korporativnaya sotsial'naya otvetstvennost': Obshchestvennye ozhidaniya, potrebiteli, menedzhery, SMI i chinovniki otsenivayut sotsial'nuyu rol' biznesa v Rossii [Corporate Social Responsibility: Public Expectations, Consumers, Managers, Mass Media and Officials Evaluate the Social Role of Business in Russia] (Moscow: Assotsiatsiya Menedzherov Rossii, 2004), p.13. Ibid. Federatsiii Vestnik Soveta, pp.9–10. Irina Nagornykh, ‘Valeriya Shantseva peresazhivayut na Volgu’ [Valerii Shantsev is Being Transplanted to the Volga], Kommersant Daily, 3 Aug. 2005. Tuleev's Budgetary Address to Regional Assembly, 27 Oct. 2004, available at , accessed 24 Sept. 2007. Iuliya Lyakh, ‘Tuleev obeshchaet “Amtelu” problemy’ [Tuleev Promised Problems for Amtel], Vedomosti, 5 May 2005. Administration of Kemerovo Oblast' press release, 13 July 2005, available at , accessed 24 Sept. 2007. Federatsiii Vestnik Soveta, p.12. Alexandr Filipenko interview, ‘Gubernator Filipenko: Segodnya vazhnee umet’ prodat' chem proizvesti' [Governor Filipenko: Today it is More Important to be Able to Sell than to Produce], Politicheskii zhurnal, 2005, No.13 (11 April). TNK–BP Report ‘Vneshnyaya sotsial'naya politika TNK–BP: ot otdel'nykh proektov k yedinoi strategii’ [TNK–BP's External Social Policy: From Separate Projects to a Unified Strategy], Moscow, Feb. 2005, p.7, available at , accessed 24 Sept. 2007. ‘Nezamenimyi Abramovich’ [Irreplaceable Abramovich], Vedomosti, 19 Jan. 2007. Anfisa Voronina, ‘Veksel'beringovo more’ [The Veksel'berg Sea], Vedomosti, 11 Aug. 2005. Ivan Rozinzkii, ‘Biznes i biznes skhemy: Transfertnoe tsenoobrazovanie lezhit v osnove nashikh bed’ [Business and Business Schemes: Transfer Pricing Lies at the Base of our Difficulties], Nezavisimaya gazeta, 26 June 2001. Irina Rybal'chenko, ‘Tsena neft'yanogo voprosa’ [The Cost of the Oil Question], Kommersant Daily, 21 May 2001; Yuliya Fedorinova, ‘V Rossii tak nel'zya’ [You Shouldn't do that in Russia], Vedomosti, 4 Oct. 2005. Rugman and Eden, Multinationals and Transfer Pricing, pp.282–3; Plasschaert, Transfer Pricing, p.6. Following the dissolution of the USSR, Baikonur has become part of the territory of Kazakhstan. However, in 1995, in accordance with an agreement between the Russian and Kazakh governments, a Russian civilian administration was formed, which took responsibility for the industrial and residential areas of the town and its infrastructure. Since 1 January 1996, the town has officially been under Russian economic governance. The mayor of Baikonur is appointed by the president of the Russian Federation by agreement with the president of Kazakhstan. Alexei Kuznetsov, ‘Oligarkhi vyshli v otkrytyi kosmos’ [The Oligarchs have gone into Outer Space], Novaya gazeta, 18 March 2002. Rodion Levinskii, ‘Orbital'naya skhema MNPZ: Nalogoviki trebuyut s zavoda $135mln’ [The Orbital Scheme of Moscow Oil Refinery: Taxmen Demand $135 m from the Plant], Vedomosti, 11 March 2005. Kuznetsov, ‘Oligarkhi vyshli v otkrytyi kosmos’. Gul'chak Hannanova, ‘Za Bashkirskie skhemy zaplatyat Ufimskie NPZ’ [Ufa Oil Refinery to Pay for Bashkiria Schemes], Kommersant Daily, 26 Jan. 2005. ‘Nezakonnost’ Baikonurskikh skhem bol'she ne budet podvergat'sya somneniyu' [Illegality of Baikonur Schemes Will no Longer be Subject to Doubt], Vedomosti, 5 Aug. 2005. ‘Schetnaya palata provedet total'nuyu proverku vnutrennikh ofshorov’ [Accounts Chamber Conducts Full Examination of Internal Off-shore Companies], lenta.ru, 20 May 2004, available at , accessed 24 Sept. 2007. Alexei Kudrin interview, ‘Gubernator Abramovich obmenyal l'goty na zoloto’ [Governor Abramovich Converted Benefits into Gold], Kommersant Daily, 20 Nov. 2003. Ibid. Alexei Kudrin interview, ‘Otstavka Voloshina sovpala s kontsom epokhi Yel'tsina’ [Voloshin's Retirement Coincided with End of the Yeltsin Era], Kommersant Daily, 3 Nov. 2003. Ibid. ‘Neftyanaya korova ustala’ [The Oil Cow is Tired], Rossiiskaya gazeta, 2 Sept. 2005. Aleksandr Radygin, ‘Uklonenie ot neuplaty nalogov’ [Tax Evasion], Fond Liberal'naya Missiya, 10 March 2004, available at , accessed 24 Sept. 2007. ‘Transfertnye tseny: Minfin nastaivaet’ [Transfer Prices: The Ministry of Finance Insists], Ekonomika i zhizn', 2005, No.10 (5 Oct.). ‘Na kogo napravlen udar: transfertnye tseny’ [At Whom is the Blow Aimed? Transfer Prices], Ekonomika i zhizn', 2005, No.11 (5 Nov.). Prior to Khodorkovskii's arrest in October 2003, Yukos, through its parliamentary inter-faction Energiya group, had sabotaged all governmental attempts to clamp down on the system. ‘Lobbisty v Gosdume’ [Lobbyists in the State Duma], Russkii fokus, 15 Sept. 2003; ‘Syre'evaya Duma 2003’ [The Raw Materials Duma 2003], Vedomosti, 9 Oct. 2003. William Tompson, ‘The Political Implications of Russia's Resource-Based Economy’, Post-Soviet Affairs, Vol.21, No.4 (2005), pp.335–59 (p.345). World Bank, Russia Office, ‘Doklad ob ekonomike Rossii – mart 2005 g.’ [Report on Russia's Economy, March 2005], p.11, available at , accessed 24 Sept. 2007. ‘Posledstviya dela Yukosa: luchshe chem kazhetsya’ [Consequences of the Yukos Affair: Better than it Seems], Pravda, 24 July 2005. ‘Sibneft’ doplatila v byudzhet $125mln' [Sibneft Pays Extra $125 m to Budget], Vedomosti, 18 May 2005. ‘V Tyumeni – Pozvoleno. TNK–BP ispol'zuyut transfertnye tseny’ [In Tyumen' It's Allowed: TNK–BP Use Transfer Prices], Vedomosti, 4 Aug. 2005. ‘U TNK–BP otnimayut l'goty’ [Benefits taken from TNK–BP], Expert, 11 Oct. 2006. Yakov Pappe, ‘Otnosheniya federal'noi ekonomicheskoi elity i vlasti v Rossii v 2000–2004 godakh: Tormozhenie v tsentre i novaya strategiya v regionakh’ [Relations between the Federal Economic Elite and the Authorities in Russia, 200–2004: Braking in the Centre and a New Strategy in the Regions], in Frukhtman (ed.), Regional'naya elita, pp.77–89 (p.89). Natal'ya Zubarevich, Krupnyi biznes v regionakh Rossii: Territorial'nye strategii razvitiya i sotsial'nye interesy [Big Business in Russia's Regions: Territorial Development Strategies and Social Interests] (Moscow: Pomatur, 2005), p.68. Author's interview with Alla Chirikova, 11 July 2005. Author's interviews with Yaroslavl' politicians, 18–22 July 2005. ‘Smestit’ tsentr pribyli' [To Remove the Profit Centre], Ekspert-Volga, 2006 No.28 (30 Oct.). ‘SUEK perenosit tsentr pribyli v Irkutskuyu oblast’' [SUEK Transfers Profit Centre to Irkutst Oblast'], Vedomosti, 23 July 2004. ‘Val Gamburtseva ushel za $7 mln’ [Val Gamburtseva Well has Gone for $7 m], Kommersant Daily, 12 March 2001; the state-controlled Rosneft' subsequently purchased Severnaya Neft' from Vavilov for $600 m: see ‘Vavilov stal bogache na $600 mln’ [Vavilov Richer by $600 m], Vedomosti, 13 Feb. 2003. Federal'nyi Zakon 122-FZ ‘O vnesenii izmenenii v zakonodatel'nye akty RF i priznanie utrativshimi silu nekotorykh zakonodatel'nykh aktov RF v svyazi s prinyatiem federal'nykh zakonov “O vnesenii izmenenii i dopolnenii v Federal'nyi Zakon ‘Ob obshchikh printsipakh organizatsii zakonodatel'nykh i ispolnitel'nykh organov gosudarstvennoi vlasti sub”ektov RF’” i “Ob Obshchikh printsipakh organizatsii mestnogo samoupravleniya v RF”' [On the Introduction of Amendments to Legislative Acts of the RF [Russian Federation] and the Recognition of the Loss of Force of Certain Legislative Acts of the RF in Connection with the Adoption of Federal Laws ‘On the Introduction of Amendments and Additions to the Federal Law “On the General Principles of Organizing the Legislative and Executive Organs of State Power in the Subjects of the RF” and ‘On the General Principles of Organization of Local Self-Government in the RF’], Sobranie zakonodatel'stva Rossiiskoi Federatsii (Moscow: Yuridicheskaya literatura, 2004), p.2711. ‘Oleg Mitvol’ predlozhil otozvat' chast' litsenzii britanskikh zolotodobytchikov' [Oleg Mitvol' has Proposed Revoking Part of the Licences of British Gold Extractors], Rossiiskaya gazeta, 29 Nov. 2006. ‘Gazpromneft’ znachitel'no otklonilas' ot ustanovlennykh pokazatelei po ob”emam uglevodorodnogo syr'ya' [Gazpromneft' has Significantly Deviated from the Established Indicators on Volumes of Hydrocarbon Materials], Rossiiskaya gazeta, 19 Dec. 2006. ‘Chinovniki uporyadochili nedropol'zovanie’ [Officials have Sanctioned Use of Minerals], Sibirskaya neft', 10 Aug. 2006. ‘Uchitel’ Trutnev' [Trutnev the Teacher], Vremya novostei, 20 July 2006. ‘Rosprirodnadzor predlagaet otozvat’ litsenzii u Lukoila' [Russian Environmental Protection Agency Proposes to Revoke Lukoil's Licence], Vedomosti, 13 Oct. 2006. ‘Mitvol’ postradal iz-za 200mln untsii zolota' [Mitvol' Suffered for 200 m Ounces of Gold], Ekspert, 8 Dec. 2006. Ol'ga Kryshtanovskaya, ‘Politicheskie reformy Putin i elita’ [Putin's Political Reforms and the Elite], Ekonomika i obshchestvo, 2003, Nos. 4–5, pp.3–50 (p.32). Natal'ya Lapina, ‘Biznes i vlast’: Sokhranitsya li regional'noe mnogoobrazie?' [Business and Power: Will Regional Diversity Survive?], in Frukhtman (ed.), Regional'naya elita, pp.65–77 (p.74). Aleksandr Veshnyakov interview, ‘Aleksandr Veshnyakov nadeetsya, chto otmena vyborov – vremennaya mera’ [Aleksandr Veshnyakov Hopes that the Election Delay is a Temporary Measure], Vremya novostei, 10 Feb. 2005. Federal'nyi Zakon No.159-FZ, 11 Dec. 2004, Moscow, available at , accessed 24 Sept. 2007; Ukaz Prezidenta Rossiiskoi Federatsii [RF Presidential Decree], No.1603, 27 Dec. 2004, available at , accessed 24 Sept. 2007. ‘Irkutskie vybory: bor'ba ideologii ili teatr absurda’ [Irkutsk Elections: Struggle of Ideologies or Theatre of the Absurd], Nezavisimaya gazeta, 14 Aug. 2001. Kiril Tremasov, ‘Vopros o novom Irkutskom gubernatore – predmet torga krupnykh FPG’ [The Matter of the New Irkutsk Governor: An Object of Trade for Large Finance and Industrial Groups], Nezavisimaya gazeta, 4 Aug. 2005. Dmitrii Yelovskii, ‘Gubernator s bol'shoi dorogi’ [Governor from the Major Road], Kommersant Daily, 15 Aug. 2005. Standard and Poor's Analytical Report, ‘Khanty-Mansiiskii Avtonomnyi Okrug – Kreditnyi Reiting’ [Khakty-Mansi Autonomous Okrug: Credit Rating], 23 March 2005, available at , accessed 24 Sept. 2007. Anfisa Voronina, ‘Neelov ostanetsya na Yamale’ [Neyelov to Remain at Yamalo], Vedomosti, 18 Feb. 2005. Andrei Riskin, ‘Regional'nye elity pereshli v kontrataku’ [Regional Elites Counter-Attack], Nezavisimaya gazeta, 17 March 2005. Igor' Nikitin, ‘Put’ k beregu udachi' [The Road to the Good Luck Shore], Dal'nevostochnyi kapital, 9 Sept. 2001. 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Author's interview, 22 July 2005. Tat'yana Nikitina, ‘Vybor, kotorogo net’ [A Choice that Isn't], Izvestiya Saratova, 12 May 2005. Aleksei Motorkin interview, ‘Politicheskii krest ekonomicheskoi elity’ [The Political Cross of the Economic Elite], Afanasii-Birzha Rossiiskii ekonomicheskii yezhenedel'nik, 29 June 2005. Aleksei Kolyshkin, ‘Smena konfiguratsii’ [Change of Configuration], Permskii obozrevatel', 8 Aug. 2005. See official website of the Yedinstvo party and its regional membership pages; available at , accessed 24 Sept. 2007. Kira Latukhina, ‘Poterya orientatsii’ [Loss of Orientation], Vedomosti, 24 Sept. 2007. David Lane and Cameron Ross, The Transformation from Communism to Capitalism: Ruling Elites from Gorbachev to Yeltsin (New York: St. Martin's Press, 1999); Martin Nicholson, Towards a Russia of the Regions (Oxford: Oxford University Press, for the International Institute for Strategic Studies, 1999). Cassis, Big Business, pp.222–3. Aleksei Zudin, ‘Vzaimodeistvie krupnogo biznesa i vlasti pri Putine i ikh vliyanie na situatsiyu v Rossiiskikh regionakh’ [The Interaction of Big Business and Authority under Putin and their Influence on the Situation in Russia's Regions], in Frukhtman (ed.), Regional'naya elita, pp.37–64 (pp.37–9). ‘Bor'ba klanov rodila klona’ [The Struggle of the Clans has Produced a Clone], Novaya gazeta, 31 July 2003. Pappe, ‘Otnosheniya federal'noi ekonomicheskoi elity i vlasti’, p.83. ‘Ves’ Sovet Federatsii' [The Whole Federation Council], Kommersant vlast', 2002, No.7 (26 Feb.). ‘Putin lishil oligarkhov neprikosnovennosti’ [Putin has Deprived the Oligarchs of Immunity], gazeta.ru, 24 Sept. 2007. Yelena Ivanova, ‘On takoi odin’ [He's One of Those], Vedomosti, 3 Oct. 2007. Petr Peregudov, Korporatsii, obshchestvo, gosudarstvo [Corporations, Society, the State] (Moscow: Nauka 2003) pp.255–9. Tompson, ‘Putting Yukos in Perspective’, p.172. Boris Grozovskii, ‘Strana vzzatok: Rossiya dostigla afrikanskogo urovnya korruptsii’ [Land of Bribes: Russia has Reached the African Level of Corruption], Vedomosti, 19 Oct. 2005; ‘Rossiya opustilas na 143 mesto’ [Russia has Fallen to 143rd Place], Vedomosti, 26 Sept. 2007. Vasilii Kashin, ‘Otkat v Rossii: v strane proizoshel korruptsionnyi perevorot’ [Recoil in Russia: A Coup of Corruption has Occurred in the Country], Vedomosti, 16 Nov. 2005. Ibid. Svetlana Ivanova, ‘Spasibo Germanu Grefu’ [Thank You to Herman Gref], Vedomosti, 16 Nov. 2005. Yurii Nemytykh, ‘Administrativnaya petlya’ [The Administrative Loop], Expert, 28 June 2004. Postanovlenie Pravitel'stva [Government Decree] No.581, 5 Aug. 2000, at , accessed 24 Sept. 2007. Author's interview with Yevgenii Main, 20 July 2005. Tat'yana Antonova, ‘Missiya Ekonomicheskogo Soveta’ [The Economic Council's Mission], Vremya novostei, 2004, No.8. Author's interview with Oleg Vinogradov, 20 July 2005. Aleksandra Larintseva, ‘Mezhdu khlebom i vodoi’ [Between Bread and Water], Kommersant vlast', 27 Feb. 2006. Rinat Sagdiev, ‘Na Inteko zhaluyutsya deputatam’ [They're Complaining to Deputies about Inteko], Vedomosti, 23 Aug. 2005. ‘Tri Tsveta Biznesa’ [The Three Colours of Business], Nezavisimaya gazeta, 4 Oct. 2005. Robert Dahl, A Preface to Democratic Theory (Chicago, IL: University of Chicago Press, 1956), pp.83, 36 and 22. Stephen Welch, The Concept of Political Culture (New York: St. Martin Press, 1993), p.164; Brown, ‘Conclusions’, p.187; James Alexander, Political Culture in Post-Communist Russia: Formlessness and Recreation in a Traumatic Transition (Basingstoke: Macmillan, 2000), pp.35–6. Alexander, Political Culture, p.42–3. Roland, ‘The Economy’, p.96. Igor Bunin, ‘V poiskakh novoi sotsial'noi roli biznesa’ [In Search of a New Social Role for Business], Conference Materials, Assotsiatsiya Menedzherov Rossii, Moscow, 17 Nov. 2005. Additional informationNotes on contributorsElena Chebankova Elena Chebankova holds a Research Fellowship at Wolfson College, University of Cambridge; during the academic year 2009/10 she is on leave as a Research Fellow at the Université Libre de Bruxelles, Brussels, Belgium.