The Russia Conundrum

September 12, 2022
Kremlin hardliners, Western liberals, and ex-president Boris Yeltsin all take heat in this revealing if self-serving account of post-communist Russia. Former Yukos Oil CEO Khodorkovsky argues that Yeltsin, under the influence of the “Chicago Boys,” a group of “young technocrats led by Harvard University’s Jeffrey Sachs,” wrecked the country’s economic infrastructure while creating just enough opportunities for a handful of risk-oriented entrepreneurs to succeed. As Yeltsin sought reelection in 1996, leading businessmen, Khordorkovsky included, advanced the Russian government $1.8 billion; in return, Yeltsin agreed to revise the laws on state industries, paving the way for Khodorkovsky to buy Yukos, then a flailing state-owned company. By cracking down on theft and mismanagement within Yukos, Khodorkovsky writes, he recast it “as an open, transparent, rules-based entity, capable of matching Western standards in all areas.” Though Khodorkovsky believed he had the magic formula for ushering Russia into the new millennium, Vladimir Putin—who became “acting president” following Yeltsin’s resignation on New Year’s Eve 1999—disagreed. A power struggle between liberal reformers and “Putin’s cronies,” who used their businesses “to challenge the West rather than to strengthen cooperation with it,” ensued, leading to Khodorkovsky’s 2003 arrest and 10-year imprisonment. Though the author clearly has axes to grind and builds his case largely on anecdotal evidence, this is a valuable resource for understanding how modern Russia came to be. Photos.