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Ed Webb

Our Oligarch - 0 views

  • Abramovich is perhaps the most visible of the “oligarchs” surrounding Putin, who are widely perceived as extensions of the Russian president and keepers of a vast fortune that is effectively under the Kremlin’s control. Much of this wealth was extracted from Russia’s enormous energy and mineral resources, and is now stashed in secret bank accounts in the Mediterranean and the Caribbean, in empty mansions and condos from London to Manhattan to Miami, and in yachts and private jets on the French Riviera.
  • as much as 60% of Russia’s GDP is offshore
  • Abramovich—who, like many of the most prominent Russian oligarchs, is Jewish—has for years been a prolific donor to Jewish philanthropies. He has given half a billion dollars to Jewish charities over the past two decades, sending money linked to Putin’s kleptocratic regime circulating through Jewish institutions worldwide
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  • The reserved, gray-bearded Abramovich is notoriously litigious toward critics who seek to detail his close ties to Putin. Last year, he successfully sued the British journalist Catherine Belton, who claimed in her 2020 book Putin’s People that the Russian president dictated Abramovich’s major purchases, including his decision to buy Chelsea. He also extracted an apology from a British newspaper for calling him a “bag carrier” for the Russian president.
  • Among other things, he has profoundly influenced Jewish life on three continents, developing deep financial ties with major communal institutions. He is partly responsible for the preeminent role played by Chabad in the religious life of post-Soviet Russia, for the growth of major Jewish museums from Russia to Israel, for a raft of anti-antisemitism programming involving leading American and British Jewish organizations, and for the expansion of Israeli settlements in East Jerusalem
  • the Jewish world is forced to reckon with its long embrace of Abramovich, and with the moral costs of accepting his money
  • Certain Soviet Jews of Abramovich’s generation found themselves at the forefront of an emerging market economy. Concentrated in white collar professions but systematically excluded from desirable posts and from the top ranks of the Communist Party, they were unusually prepared—and, perhaps, motivated—to find legal and semi-legal points of entry into the tightly-regulated commerce between the Soviet Union and the West. This helps explain why, as the historian Yuri Slezkine writes in The Jewish Century, six of the seven top oligarchs of 1990s Russia (Petr Aven, Boris Berezovsky, Mikhail Fridman, Vladimir Gusinsky, Mikhail Khodorkovsky, and Alexander Smolensky) were ethnic Jews.
  • Boris Yeltsin soon initiated the firesale privatization of state-controlled industries at the urging of Washington and the IMF—a reckless transition from a command economy to a capitalist one that drove millions of Russians into poverty
  • the Yeltsin administration implemented its infamous loans-for-shares program, selling off key state industries in rigged auctions to Russia’s new business elite for a fraction of their real value in order to stabilize the state’s finances in the short term. Berezovsky and Abramovich gained ownership stakes in Sibneft, one of the world’s largest energy companies, and became instant billionaires.
  • In 1996, the handful of leading oligarchs pooled their financial resources—and directed their media companies’ coverage—to reelect the deeply unpopular Yeltsin over his Communist challenger, Gennady Zyuganov, whose platform of re-nationalizing industries terrified both the Russian and Western business classes
  • Fearing that it was unsustainable for a small group of mostly Jewish billionaires to prop up an ailing, visibly alcoholic president—especially after the ruble collapsed in 1998, dragging down a generation’s living standards and initiating a hunt for scapegoats—Berezovsky spearheaded an effort the following year to replace Yeltsin with a young, healthy, disciplined, and then-obscure former KGB officer named Vladimir Putin. It was a decision he would come to regret.
  • wealth so easily acquired could just as easily be taken away. In 2001, Putin hounded Berezovsky and Gusinsky—whose TV networks had criticized the president’s mishandling of a naval disaster—with criminal indictments for tax fraud, forcing them to sell their media and energy holdings at a fraction of their true cost. As a result, Abramovich, who had never challenged Putin, acquired control of Sibneft, while Berezovsky fled to the United Kingdom and Gusinsky departed for Spain and then Israel. Abramovich again came out ahead in 2003, when the oligarch Khodorkovsky was sent to a Siberian prison on tax charges after criticizing Putin for corruption, leaving his assets in the energy sector to be redistributed among those on good terms with the president.
  • “I don’t think there is a percent of independence in Abramovich,” said Roman Borisovich, a Luxembourg-based Russian banker turned anti-corruption activist who once encountered Abramovich through Berezovsky in the 1990s. “For Abramovich to stay alive, he had to turn against his master [Berezovsky], which is what he did, and he has served Putin handsomely ever since.”
  • Whereas in the Yeltsin era, the term identified a system dominated by truly independent tycoons, “Putin’s top priority when he came to power was to break that system, replacing it with a system of concentrated power in which men who are inaccurately referred to as oligarchs now have only as much access to wealth as Putin allows them to have,”
  • Even as he built up his credibility with Putin, he joined many of his fellow oligarchs in stashing his billions in Western financial institutions, which proved eager to assist. “Elites in the post-Soviet space are constantly looking to move their assets and wealth into rule-of-law jurisdictions, which generally means Western countries like the US or UK,”
  • In 2008, Berezovsky sued his former protege over his confiscated Sibneft shares; then, in 2012, seven months after a judge rejected all of his claims, Berezovsky died in his London home in an apparent suicide. Some former associates believe he might have been murdered
  • In 2017, BuzzFeed reported that US spy agencies suspect Russian involvement in as many as 14 mysterious deaths in Britain over the previous decade, including Berezovsky’s. In the wake of the 2018 poisoning of the defected double agent Sergei Skripal and his daughter, British intelligence services became increasingly wary of wealthy expats with close ties to the Kremlin. Diplomatic strain stymied Abramovich’s effort to acquire a Tier 1 British visa, which would have enabled him to stay in the country for 40 months.
  • “No one forced the British or American real estate industries to toss their doors open to as much illicit wealth as they could find, or the state of Delaware to craft the world’s greatest anonymous shell company services,” said Michel. “Western policymakers crafted all of the policies that these oligarchs are now taking advantage of.”
  • Abramovich also safeguarded a significant part of his fortune in the US, especially during his third marriage to the Russian American socialite and fashion designer Dasha Zhukova. Even after their 2018 divorce, Abramovich began the process of converting three adjacent townhouses on Manhattan’s Upper East Side into what will eventually become the largest home in the city, an “urban castle” valued at $180 million—making him one of the many wealthy Russians sheltering assets in New York’s booming and conveniently opaque real estate sector. (The mansion is intended for Zhukova and their two young children; Abramovich also has five children from his second marriage based primarily in the UK.) He also owns at least two homes in Aspen, Colorado, a gathering place of the global elite.
  • the oligarchs are now credibly threatened with exile from the West. Countries like France and Germany have already begun confiscating yachts owned by select Russian officials. And although the UK is still struggling to come up with a legal basis for following suit, leading politicians like Labour Leader Keir Starmer are urging direct sanctions against Abramovich. “Abramovich’s reputation has finally collapsed, along with the other supposedly apolitical oligarchs,” Michel said four days after Russia invaded Ukraine. “There’s no recovery from this. This is a titanic shift in terms of how these oligarchs can operate.”
  • Israel has been more hesitant to hold him to account.
  • In 2018, Abramovich acquired Israeli citizenship through the law of return, immediately becoming the second-wealthiest Israeli, behind Miriam Adelson. As a new Israeli citizen, he joined several dozen Russian Jewish oligarchs who have sought citizenship or residency in the Jewish state—a group that includes Fridman, Gusinsky, and the late Berezovsky. Since 2015, Abramovich has owned and sometimes lived in the 19th-century Varsano hotel in Tel Aviv’s trendy Neve Tzedek neighborhood, and in 2020 he purchased a mansion in Herzliya for $65 million—the most expensive real estate deal in the country’s history
  • As an Israeli passport holder, Abramovich is eligible to visit the UK for six months at a time and is exempt from paying taxes in Israel on his overseas income for the first decade of his residency
  • Given his increasingly precarious geopolitical position, Jewishness has become Abramovich’s identity of last resort—and Jewish philanthropic giving has provided him with an air of legitimacy not only in Israel but throughout the Jewish world. Abramovich and his fellow oligarchs “need to spend some money to launder their reputations,” said Borisovich, the anti-corruption activist. “They cannot be seen as Putin’s agents of influence; they need to be seen as independent businessmen. So if they can exploit Jewish philanthropy or give money to Oxford or the Tate Gallery, that’s the cost of doing business.”
  • A 2017 article in Politico, which identified Abramovich and Leviev as “Chabad’s biggest patrons worldwide,” also referred to Lazar as “Putin’s rabbi.” Lazar has often run interference for the Russian president—for instance, by defending his initial crackdown on oligarchs like Gusinsky as not motivated by antisemitism, or by praising Russia as safe for Jews under his governance. (The researcher noted that Putin has also cultivated prominent loyalists in other Russian religious communities, including the Orthodox Church and Islam.)
  • Abramovich also significantly funded the construction of the $50 million Jewish Museum and Tolerance Center in Moscow, which opened in 2012 (and to which Putin pledged to donate a month of his presidential salary). In a 2016 article in The Forward, the scholar Olga Gershenson suggested that the museum’s narrative bordered on propaganda, framing Jews as “a model Russian minority” and “glorifying and mourning . . . without raising more controversial and relevant questions that would require the viewer to come to terms with a nation’s difficult past.”
  • “It concentrates on the Soviet victory over the Nazis, and then it ends by saying that Jews in Putin’s Russia are all good and content.”
  • “Say No to Antisemitism” has brought together Chelsea players and management with many top Jewish groups; the currents heads of the ADL, the WJC, the Conference of Presidents of Major American Jewish Organizations, and the Holocaust Educational Trust, among others, are all listed on its steering committee. The campaign is at least in part intended to address the antisemitism of some Chelsea fans, who have been known to shout “Yid!” and hiss in imitation of gas chambers when taunting fans of the rival club Tottenham, which has a historically Jewish fan base that proudly refers to itself as “the Yid Army.” Last November, Israeli President Isaac Herzog described the campaign as “a shining example of how sports can be a force for good and tolerance.”
  • Abramovich is also one of the primary benefactors of a Holocaust museum that opened in Porto last May. As of last year, Abramovich is a newly minted citizen of Portugal (and by extension, the European Union), which offers such recognition to anyone who can prove Sephardic ancestry dating back before the Portuguese expulsion of Jews in 1496.
  • Berel Rosenberg, a representative of the museum, denied that Abramovich had given the Porto Jewish community any money besides a €250 fee for Sephardic certification; regarding reports to the contrary, he alleged that “lies were published by antisemites and corrupt journalists.” However, Porto’s Jewish community does acknowledge that Abramovich has donated money to projects honoring the legacy of Portuguese Sephardic Jews in Hamburg, and he has been identified as an honorary member of Chabad Portugal and B’nai B’rith International Portugal due to his philanthropic activities in the country.
  • Abramovich has made a $30 million donation for a nanotechnology research center at Tel Aviv University; funded a football-focused “leadership training program” for Arab and Jewish children; and supported KKL-JNF’s tree-planting campaign in the southern Negev, which is dedicated to Lithuanian victims of the Holocaust—and which has drawn opposition from local Bedouin communities who view it as a land grab.
  • he has kept his support for Israeli settlements well-hidden
  • Abramovich has used front companies registered in the British Virgin Islands to donate more than $100 million to a right-wing Israeli organization called the Ir David Foundation, commonly known as Elad, which has worked since the 1980s to move Jewish settlers into occupied East Jerusalem. Elad also controls an archeological park and major tourist site called City of David, which it has leveraged in its efforts to “Judaize” the area, including by seizing Palestinian homes in the surrounding neighborhood of Silwan and digging under some to make them uninhabitable.
  • Even before he announced he would be setting up a charity to help victims in Ukraine, members of Abramovich’s family were quick to distance themselves from the war: A contemporary art museum in Moscow co-founded by Abramovich and Zhukova has announced that it will halt all new exhibitions in protest of the war. Abramovich’s 27-year-old daughter Sofia, who lives in London, posted a message on her popular Instagram account that read, “The biggest and most successful lie of the Kremlin’s propaganda is that most Russians stand with Putin.”
  • Just two days before Putin launched his invasion of Ukraine, it was reported that Abramovich is donating tens of millions of dollars to Yad Vashem, the global Holocaust remembrance center in Jerusalem
  • Yad Vashem chairman Dani Dayan joined the heads of multiple Israeli charitable organizations in urging the US not to sanction Abramovich. The letter was also signed by Chief Rabbi of Israel David Lau and representatives of Sheba Medical Center, Tel Aviv University, and Elad
  • Oleg Deripaska and Mikhail Fridman, were already calling for peace negotiations just three days after the invasion. (Fridman and Deripaska are also major Jewish philanthropists, as are other Russian oligarchs including Petr Aven, Yuri Milner, and Viktor Vekselberg. All of them now face global scrutiny.)
  • “In order for settlers to take over Palestinian homes, they need a lot of money,” said Hagit Ofran, co-director of the Settlement Watch project at the Israeli organization Peace Now, “both to take advantage of poor Palestinians for the actual purchases, and then for the long and expensive legal struggle that follows, and that can bankrupt Palestinian families. The money is crucial.” Of Abramovich’s support for Elad, she added, “That’s a lot from one source; I assume that if you give such a big donation, you know what it is for.”
  • Abramovich and others have spent more than two decades loyally serving and profiting off Putin’s corrupt and violent regime—one that has been accused of murdering and jailing journalists and political dissidents and of committing war crimes from Chechnya to Syria. And for much of that time, Jewish institutions worldwide have been more than happy to take money from Abramovich and his peers
  • longstanding philanthropic ties may affect the Jewish communal world’s willingness to hold Russia accountable for its violation of Ukraine’s sovereignty
  • “I think the view of much of Jewish philanthropic leadership, right and left, conservative and liberal, has been the bottom line: If the purposes for which the philanthropy is given are positive, humane, holy, and seen to strengthen both the Jewish community and the whole of society, then to sit and analyze whether the donor was exploitive or not, and whether this was kosher or not, would be hugely diverting, amazingly complicated, and divisive.”
  • Rabbi Jill Jacobs, executive director of T’ruah: The Rabbinic Call for Human Rights, acknowledged the difficulty of making ethical calls about donors, but argued that the attempt is still necessary. “In philanthropy, nearly all money is tainted, either because it was acquired by exploiting workers, by harming the environment, by selling harmful products, or by taking advantage of systems that benefit the wealthy to the detriment of others. That said, we can’t throw up our hands and say that we can either take no money or all money; there have to be red lines,” she said.
  • Berman, the scholar of Jewish philanthropy, agrees. “It is tempting to say all money is fungible, so where it came from does not or cannot matter,” she said. “But no matter how much we might want to launder the money, wash it clean of its past and its connections to systems of power, the very act of doing so is an erasure, an act of historical revisionism. Even worse, it can actually participate in bolstering harmful systems of power, often by deterring institutions reliant on that money from holding a person or system to account.”
Ed Webb

The Death of Syria's Mystery Woman - New Lines Magazine - 0 views

  • since the early 2000s, when Bashar al-Assad came to power and loosened the country’s restrictions on private schools and colleges, educational institutions run or influenced by the Qubaysiyat have become ubiquitous in Syria
  • franchises across the Middle East and even as far afield as Europe and the Americas
  • family members who have watched wives, mothers, sisters or daughters burrow deeper into the organization do occasionally complain openly about the group’s peculiar ideas and practices
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  • hybrid hierarchical structure
  • By the early 1980s, just before members of the Muslim Brotherhood and other anti-government Islamist groups went into exile following a failed uprising against then-President Hafez al-Assad, it was commonly said that almost every conservative woman in Damascus was either a disciple of the Qubaysiyat, attended their classes occasionally or at the very least admired them. The group had sunk deeper roots into Syrian society than many who had chosen to challenge the regime directly. Today, the knotted veil and loose dress of the Qubaysiyat have become symbolic of urban Damascene culture as a whole.“When my 20-something-year-old daughter comes home one day wearing the hijab, and slowly grows more religious, how can I, her mother, not wear a hijab also?” recalled one Damascene whose entire family converted from secularists to observant Muslims after their daughter joined the Qubaysiyat.
  • For many supporters of the Syrian revolution, the group was tarnished by the decision in the early years of the uprising by leaders of the Qubaysiyat to be photographed meeting with Assad. The organization itself has exhibited fractures amid the pressure of a conflict that has impacted every sector of Syrian society, with divisions emerging among rank-and-file members over how to respond to the cataclysm of the war and their own leaders’ pragmatic relationship with the Syrian regime.
  • Al-Qubaysi never made public appearances or spoke directly to the press
  • unusually for women in a deeply conservative society, al-Qubaysi (like many of her group’s leadership) never married — devoting her entire life instead to the cause of women’s education.
  • its abandonment of politics led the movement toward other avenues of influence over Syrian society. The organization would come to influence the social scene in Damascus through a network of affordable private schools that offered high-quality education to young women, many of whom were drawn from the city’s conservative upper class. The growth of the movement reflected al-Qubaysi’s own organizational genius, employing tools like strategic marriages with elite figures, well-placed gifts and the acquisition and refurbishment of old properties to serve as schools. At its peak, nearly 40% of private girls’ schools and tutoring services in Damascus are believed to have been run by the organization.
  • the group was divided between leaders who sought to accommodate the regime and rank-and-file members who often sympathized with the opposition. In December 2012, leaders from the group were forced to break their public silence on the uprising to attend a meeting with Assad, where, implicitly, they projected support for the regime by appearing with its leader. A few days later, a protest video by ostensible Qubaysiyat disciples was uploaded to YouTube titled, “Free Women of Damascus Defect from the Qubaysiyat” — a complaint against what many saw as collaboration with an increasingly murderous dictatorship.
  • In 2014, Salma Ayyash, a leader in the group, was appointed as assistant to Mohammed Abdul Sattar al-Sayed, the Syrian government’s minister of endowments. There was no public protest against this appointment from within the movement. More changes would soon follow. In 2018, the same ministry announced the nationalization of the Qubaysiyat and its activities, a development that signaled to many the end of the movement as an independent entity. Since then, the Qubaysiyat has come under the umbrella of a government that has, in the wake of the conflict, sought to extend its influence into every remaining corner of Syrian society.
Ed Webb

Iran strengthens political, economic hold over Iraq - Al-Monitor: Independent, trusted ... - 0 views

  • Sanctions-hit Iran is consolidating its hold over neighbouring Iraq, an economic lifeline where pro-Tehran parties dominate politics
  • During a visit to Tehran late last month, Prime Minister Mohammed Shia al-Sudani and Iranian officials urged greater bilateral cooperation in all fields.He thanked Iran which provides gas and electricity -- around one-third of Iraq's needs -- and added this would continue until Iraq was self-sufficient.His country is already the number one importer of Iranian goods.
  • "Iraq is contested by the United States and Iran, with Turkey in third place in the north,"
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  • Iran's influence can also be seen through its links with Iraq's Hashed al-Shaabi, a former paramilitary force made up mainly of pro-Iran militias that have since been integrated into the regular forces.
  • Last month, Iraq's government handed the Hashed control of a new public company, endowed with around $68 million in capital.The Al-Muhandis firm's mission in oil-rich but war-ravaged Iraq is "provincial rehabilitation and development: infrastructure, housing, hospitals, factories",
  • In November, Iraqi Foreign Minister Fuad Hussein said it was "not fair" to consider his coalition government "an attachment" to Iran's.The Iraqi Kurdish diplomat pointed to its multi-party and multi-confessional make-up as showing "balance" between the different forces.But pro-Iran parties appear to now have free rein, after rival Shiite leader Moqtada Sadr tried for months to name a prime minister and prevent Sudani's appointment.
  • the United States still remains present, with around 2,500 US troops stationed in Iraq as part of ongoing efforts to combat the Islamic State group.
  • Washington monitors Iraq's banking system to ensure Iran is not using it to evade existing restrictions, and US influence is present via "the threat of financial sanctions"."The United States is staying in Iraq so as not to totally abandon the country to Iran,"
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