Looking for Connections

No less than six mayors of major Russia cities – Vladivostok, Togliatti, Volgograd, Tomsk, Arkhangelsk and Stavropol – are sitting in jail awaiting trial. Charges vary – “abuse of power,” “illegal allotment of land plots,” “theft of municipal property” – but most all are the fallout of turf and purse-string battles between governors and mayors. Governors (appointed) seek to dictate to mayors (elected) and want access to the huge government outlays which are bestowed on large cities. 

If impatient governors can’t get what they want through straightforward arm-twisting (particularly difficult when dealing with a politico from another party), they will resort to what has become a common Plan B: sick prosecutors on the mayor. In a system with confusing and convoluted laws, something can always be pinned on everyone.

The spate of criminal prosecutions and the lumbering national anti-corruption bandwagon – this pre-election-year’s theme – have led some to see this as an orchestrated campaign to do away with the direct election of mayors. If so, it could be the final link in the Kremlin’s ever-lengthening Vertical of Power. 

The combined worth of Russia’s billionaires now surpasses that of Germany’s richest: $282 billion versus $245 billion, according to Forbes rankings. But, somewhat more significantly, the average age of Russia’s billionaires is 46, 16 years younger than elsewhere in the world. Roman Abramovich (also governor of Chukotka) continues to be Russia’s richest man, ranking 16th in the world, with $18.7 billion in estimated assets. 

Another billionaire oligarch, Mikhail Prokhorov, whose misadventures graced this page in our last issue, is worth nearly $10 billion. According to the London Telegraph, he will be dumping nearly $10 million of that wealth on a “lavish” wedding ceremony in the Maldives islands. Only problem is, no one knows who the bride is. Not even Prokhorov. Seems he made a bet with a pal some years back that he would be married by 42. So the hunt is on. The prenup will apparently stipulate that the wife must divorce Prokhorov after five days.

The overall Russian IT (Information Technology, i.e. computers, programming, software) market is presently estimated at $13.6 billion (less than Abramovich’s net worth), compared to $560-$580 million less than a decade ago, in 1999. That represents over 57% annualized growth over the past seven years.

Put in other terms, the size of the Russian IT market is just over twice the value of Russia’s arms exports last year – $6.5 billion. That sector has been growing at a record pace as well, surging over 20% versus 2005.

One might think IT and arms an odd pairing of statistics, but it’s nothing compared to March’s merger of Rosokhrankultura (which protect’s Russia’s cultural heritage: e.g the wrongful export of works of art, old books, etc.) and Rossvyaznadzor (which regulates the telecom and the... IT sector). Spokesman insist that the goal in the merger, by Kremlin decree, was “efficiency.” Worried observers see the move as harbinger of an internet crackdown. 

Another harbinger: Russia is becoming the world’s biggest source of refugees, Vedomosti reports. According to UN data, 21,693 Russian citizens requested refugee status in 2005, second only to requests from Serbia and Chernogoria (22,096). In 2006, Russian refugee request fell somewhat, to 15,647, making the country third in the world, after Iraq and China. The leading destination for Russian refugees in both years was Poland (5,015 in 2005 and 3,772 in 2006).

Speaking of trends, this winter was Moscow’s warmest and shortest on record since 1879, the Moscow Times reported. It was also very dry. Only 28 centimeters of snow fell in Moscow, versus the average of 35-40 centimeters, and snow covered the ground for just 50 days, in contrast to a previous average of 80 days. Most disturbingly, a “thermal wave” kept temperatures above freezing from November 13 through January 24 – for 70 days. According to Russian scientists, global warming has increased average temperatures by 3.5 degrees Celsius in Eastern Siberia over the past century and will, over the next 50 years, increase temperatures in Western Siberia by 3-4 degrees Celsius and in the northern parts of European Russia 2-3 degrees.

Global warming could make the southern town of Sochi a very hot place in the summer of 2014. The Black Sea resort is on the short list for hosting the 2014 summer Olympics. If it wins, the Russian government has pledged R313.9 billion ($12.1 billion) to the city as a down-payment for development (air conditioners anyone?). Wonder who will be mayor then?