How Putin Conquered Russia's Oligarchy
Note: This is Part Two of a two-part Planet Money newsletter series on the Russian oligarchs. You can read Part One here and subscribe to the newsletter here.
In the summer of 2000, 21 of the richest men in Russia exited their bulletproof limousines and entered the Kremlin for a historic meeting. In the previous decade, these men had risen seemingly out of nowhere, amassing spectacular fortunes as the country around them descended into chaos. Through shady deals, outright corruption, and even murder, these rapacious "oligarchs" — as Russians had come to derisively call them — had seized control of much of Russia's economy, and, increasingly, its fledgling democracy. But now, their nation's newly elected president, Vladimir Putin, wanted to tell them, face to face, who was really in charge.
"I want to draw your attention to the fact that you built this state yourself, to a great degree, through the political or semi-political structures under your control,'' Putin reportedly said in the closed-door meeting. ''So there is no point in blaming the reflection in the mirror. So let us get down to the point and be open and do what is necessary to do to make our relationship in this field civilized and transparent.''
Putin offered the oligarchs a deal: bend to my authority, stay out of my way, and you can or be forced into exile or . The loyalists who remained — and the new ones who got filthy rich during Putin's long reign — became like ATM machines for the president and his allies.
