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criscimagnael

The Middlemen Helping Russian Oligarchs Get Superyachts and Villas - The New York Times - 0 views

  • On Feb. 24, as Russian troops poured into Ukraine on Day 1 of the invasion, an employee of a yacht management company sent an email to the captain of the Amadea, a $325 million superyacht: “Importance: High.”
  • At Imperial Yachts, no detail is too small to sweat. Based in Monaco, with a staff of about 100 — plus 1,200 to 1,500 crew members aboard yachts — the company caters to oligarchs whose fortunes turn on the decisions of President Vladimir V. Putin. Imperial Yachts and its Moscow-born founder, Evgeniy Kochman, have prospered by fulfilling their clients’ desires to own massive luxury ships.
  • Imperial’s rise has benefited an array of businesses across Europe, including German shipbuilders, Italian carpenters, French interior design firms and Spanish marinas, which together employ thousands of people. Imperial Yachts is at the center of what is essentially an oligarch-industrial complex, overseeing the flow of billions of dollars from politically connected Russians to that network of companies, according to interviews, court documents and intelligence reports.
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  • Andrew Adams, a federal prosecutor leading the task force, said in an interview that “targeting people who make their living by providing a means for money laundering is a key priority.”
  • Along with the Amadea, Imperial Yachts oversaw the construction of the Scheherazade, a $700 million superyacht that U.S. officials say is linked to Mr. Putin, and the Crescent, which the Spanish police believe is owned by Igor Sechin, chairman of the state-owned oil giant Rosneft.
  • Mr. Timchenko and his partners designed the Scheherazade — seized in early May by the Italian police — as a gift for Mr. Putin’s use, according to the assessment. Together, the three vessels may have cost as much as $1.6 billion, enough to buy six new frigates for the Russian navy.
  • But U.S. officials are not buying such explanations. Elizabeth Rosenberg, the assistant secretary for terrorist financing and financial crimes at the Treasury Department, said it was the responsibility of people in the yacht services industry to avoid doing business with people under sanctions.“And if you do,” she said, “you yourself will be subject to sanctions.”
  • Mr. Kochman, 41, got his start in the yacht business in Russia in 2001, the year after Mr. Putin took power, selling Italian-made yachts.
  • “We grow with our clients like parents with babies,
  • We buy your yachts and you buy our gas,”
  • “The client may be fully immersed in the project, he might not be,” he said in a phone interview. “I channel everything through Mr. Kochman.”
  • “We are not currently working with anyone on the sanctions list and we have shared all requested information with the authorities, with whom we continue to work,” the spokesman said in an email.
  • But according to U.S. investigators, Imperial Yachts brokered the sale of the Amadea late last year to Suleiman Kerimov, a Russian government official and billionaire investor who has been on the U.S. sanctions list since 2018. He was among a group of seven oligarchs who the American officials said “benefit from the Putin regime and play a key role in advancing Russia’s malign activities.”
  • Mr. Clark, the lawyer for Imperial Yachts, said the company “would never knowingly create structures to hide or conceal ownership, nor would we knowingly broker deals to sanctioned individuals.”
  • One thing is clear, according to the U.S. task force: Members of Mr. Kerimov’s family were on board the Amadea earlier this year, based on investigators’ interviews with crew members, reviews of emails between the ship and Imperial, and other documents from the superyacht including copies of passports.
  • The cast of characters restoring Villa Altachiara to its former glory is familiar. Mr. Kochman’s BLD Management is supervising the project. Mr. Gey is helping to oversee the local and international artisans restoring the interior of the mansion. Yachtline 1618, an Italian high-end carpentry company that has worked on Imperial Yachts projects, is also involved.
  • Locals have never seen Mr. Khudainatov. Mariangela Canale, owner of the town’s 111-year-old bakery, said she was worried that Portofino would become a place where the homes were mere investments, owned by wealthy people who rarely visited, and the community would lose its soul. “Even the richest residents have always come for a chat or to buy my focaccia bread with their children, or have dinner in the piazza,” she said. “They live with us.”
  • “Everything is under very strict nondisclosure agreements,” Mr. Gey said. “It’s a standard in the industry.”He added, “It’s not like there is something to hide.”
Javier E

The Sanctions Against Russian Oligarchs Are Working - The Atlantic - 0 views

  • Although economists and policy makers may pooh-pooh such ideas, sociologists—including me—have long understood that the need to see and be seen is a fundamental driver of human affairs.
  • I have spent the past 15 years researching the offshore wealth of the super-rich. In my efforts to understand how oligarchs’ wealth was hidden from tax agencies, divorcing spouses, and disgruntled business partners, I have been astonished again and again at how many oligarchs cannot seem to live without the splashy public display of their wealth, even when it puts them at risk.
  • As social scientists have argued for more than a century, the evidence is overwhelming that, beyond a subsistence level, people will fight even harder for status than they do for money.
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  • We see that fight now in the anti-war comments and peacemaking efforts of Russia’s elites, after just a few days of sanctions pressure. They’re behaving exactly as sociologists would expect when status is threatened among a group accustomed to impunity: They’re angry, and they’re anxious.
Javier E

No one drooled over oligarchs like British toffs - I know, because I helped them | Comm... - 0 views

  • If you look back at their arrival in London, the first thing you notice is their ruthless efficiency. They knew what houses to buy, what lawyers to hire, what editors to butter up, what fabric to place in their yachts
  • Who helped them? People like me. The first port of call for anyone wanting to launder their reputation was the magazine where I worked, Tatler.
  • For two decades now the accepted narrative on the men who simply bought up London is that they were not really that dangerous, not if you were English. If they had worked closely with President Putin, so what? By the time they arrived here, nothing mattered.
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  • What we now know is that, by not taking them seriously — by laughing at their vulgarity and what we thought was a pitiable desperation to be part of our national life — we allowed them to appropriate our politics and business and judiciary, taking what they wanted. Far from being the ridiculous basement-diggers we thought they were, many of them knew exactly what they were doing, like KGB agents. Was it co-ordinated? The aim, we now know, wasn’t to be friends with us.
  • For a certain type of impoverished British toff the arrival of the oligarchs was a five-star orgasm. There is no way of overstating the sheer bristling excitement that greeted them as they brought over their cash. This is as much a story of British greed as it is of Russian: having been dismissed by people with bigger titles, or sneered at for not having serious money, minor toffs like Elliot, George Osborne, even Prince Andrew and Boris Johnson, could not believe they would finally be getting unlimited access to where they thought they belonged: private jets and luxury yachts.
edencottone

Going after the 'Achilles' heel': Biden charges into global anti-corruption fight - POL... - 0 views

  • Earlier this month, amid a blizzard of news both domestic and foreign, Secretary of State Antony Blinken took the time to ban a powerful Ukrainian oligarch from setting foot in the United States.
  • The choice also was notable given Ukraine’s contentious status in U.S. politics due to its role in former President Donald Trump’s first impeachment and lingering Republican allegations about President Joe Biden’s son Hunter’s dealings there.
  • “We see it as both, unfortunately, prevalent in so many places, but also a little bit of an Achilles’ heel when we can put the spotlight on it. Because when people see the corruption of their leaders, that’s a good way to undermine support for said leaders.”
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  • But making fighting corruption a policy priority won’t be easy. It’s a topic that cuts across numerous fields and government agencies, requiring bureaucratic savvy to coordinate initiatives. And America’s own corruption issues — from concerns about the role money plays in U.S. politics to lingering questions about whether Trump profited off the presidency — could undercut its voice.
  • “Governments can’t keep ignoring those grievances,” said Abigail Bellows, a scholar with the Carnegie Endowment for International Peace. “No one country can deal with it alone. It’s something that countries need to work together on.
  • Biden has pledged to host an international “Summit for Democracy” in the coming months, and the need to fight corruption is expected to be a major theme during that gathering. Alongside the summit, Biden is expected to issue a presidential policy directive that establishes fighting corruption as a core national security interest, a promise he made in an essay laying out his foreign policy agenda during the 2020 presidential campaign.
  • In a recent “interim strategic guidance” document outlining basic principles of its future National Security Strategy, the Biden administration blamed corruption for an array of ills, arguing, for example, that, tax havens and illicit financing “contribute to income inequality, fund terrorism, and generate pernicious foreign influence.”
  • It’s critical that the administration not fall into longstanding U.S. habits of viewing corruption as simply a law enforcement issue or one that affects only developing or failed states, analysts and activists said.
  • “We are key enablers of the problem globally,” said Trevor Sutton, a senior fellow with the Center for American Progress. “You need to have a concerted strategy among democracies to deal with this issue.”
  • Among the Republicans who backed cracking down on anonymous shell companies was Arkansas Sen. Tom Cotton, one of the most hawkish voices in Congress. He warned that “criminals and terrorists are exploiting our financial system using shell companies that hide their identities.”
  • Activists say the Biden administration needs to beef up the staffing in certain government divisions if it wants its anti-corruption agenda to go beyond rhetoric and have a meaningful impact.
  • One hurdle facing the Biden administration as it pushes an anti-corruption agenda on the global front is America’s own perceived flaws, from longstanding concerns about “dark money” in U.S. politics to the machinations of the lobbying and influence industries.
  • Blinken recently launched the “International Anticorruption Champions Award” to recognize anti-corruption crusaders around the world. (Planning for the prize began during the Trump administration, a State Department spokesperson said.)
  • Zelensky, though, has his own links to Kolomoyskyy. The Ukrainian president is a former comedian who gained popularity in part because of coverage by a media outlet owned by the mogul.
anonymous

Congress Poised to Apply Banking Regulations to Antiquities Market - The New York Times - 0 views

  • Regulators have long worried that the secrecy of the antiquities trade, where buyers and sellers are seldom identified, made it an easy way to launder money.
  • “We believe this type of legislation is long overdue,” said John Byrne, a lawyer with 30 years of experience in anti-money-laundering rules. “This is an area where clearly organized crime, terrorists, and oligarchs have used cultural artifacts to move illicit funds.”
  • “Over the last decade, we’ve been working with all the industries and stakeholders to build a bill that satisfies everyone,” said Representative Carolyn B. Maloney, a New York Democrat, who introduced the Corporate Transparency Act in 2019 and later shepherded that bill into the defense package. “We are at a point that we’ve built so much support that it became impossible to oppose the bill.”
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  • The new legislation calls for a study on the role of art in money laundering and terror financing. (A recent Senate report has already outlined how at least two Russian oligarchs had exploited the opaqueness of the art world to bypass U.S. sanctions.) If the study finds a link between the art market and illicit activity, it could, upon congressional review, trigger the creation of rules similar to the ones now concerning the antiquities trade. Regulators have also signaled that the Bank Secrecy Act could be further extended into the art market.“You have to know who is buying and selling,” Mr. Byrne said. “The argument that you have no obligation to report suspicious activity because you are in the private sector doesn’t work. Banks lost that argument 30 years ago.”
woodlu

Ukrainians are coping stoically with Russian aggression | The Economist - 0 views

  • He is the mayor of Pavlopil, a village in eastern Ukraine. When Vladimir Putin started grabbing Ukrainian territory in February 2014, Mr Shapkin knew his village was in danger.
  • On one side were pro-Russian separatists, armed by the Kremlin. On the other were loyalist forces. If they fought over Pavlopil, villagers would surely die.
  • He suggested that the separatists enter in the morning, unarmed and on foot, to buy food and cigarettes. The Ukrainian army could do the same each afternoon. That way, they would not bump into each other and start shooting.
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  • It worked—there was no fighting in Pavlopil
  • sporadic shooting continues in eastern Ukraine. Just on October 12th, the day of an EU-Ukraine summit in Kyiv, monitors counted nearly 300 ceasefire violations
  • Mr Putin wrote an essay in July expanding his argument that Russia and Ukraine are a single nation. Since he has already annexed Crimea, a Ukrainian peninsula, and sponsored the takeover of a big chunk of eastern Ukraine by ethnic Russian separatists, Ukrainians take his threats seriously
  • Russia will turn off the gas again
  • In 2009 it shut off the flow of gas through Ukraine for two weeks. This cost Russia a fortune, since its gas needs to pass through Ukraine to reach customers in Europe
  • Once it opens—which could be soon, though it is subject to legal and diplomatic challenges—Mr Putin will be able to choke off supplies to Ukraine almost at will
  • Technically Ukraine does not buy gas directly from Russia, but from downstream countries such as Hungary
  • it takes Russian gas in the east and substitutes its own gas, which is produced in the west of Ukraine, for transmission onwards. So if the flow through Ukraine were to stop, the east of the country would be in trouble
  • President Volodymyr Zelensky seeks shelter for his country inside NATO and the EU. But this is a non-starter. NATO members do not want to extend their principle of “an attack on one is an attack on all” to a country that Russia has already attacked.
  • Mr Zelensky’s first taste of geopolitics was when President Donald Trump urged him to supply dirt on Joe Biden, with a veiled threat that American support for Ukraine’s security might depend on his co-operation.
  • To cement relations with Germany, he waived sanctions that might have blocked Nord Stream 2 in May.
  • Oligarchs dominate the economy, control two of the bigger political parties and put other lawmakers on retainer. The IMF hesitates to throw money at a state from which billions have been stolen with apparent impunity.
  • Before the war two-thirds of people in Mariupol supported a pro-Russia political party. That share has halved. Mr Putin’s aggression has alienated the very people he claims to defend
  • Yet Russia still has a hand on Mariupol’s throat. The amount of cargo processed in its port has halved since 2012, first because of the war, then because Mr Putin made it harder for big ships to reach it from the Black Sea.
  • critics wonder if it is healthy for a city to depend so much on one tycoon. Mr Akhmetov is thought to be Ukraine’s richest man.
  • Mr Zelensky, a former comedian, has vowed to cut Ukraine’s oligarchs down to size. He is expected to sign a new law soon, which would allow a panel he appoints to label as “oligarchs” anyone who is very rich, finances a political party and controls media assets. This would make it harder for anyone so labelled to raise capital.
  • They also worry that the law might give Mr Zelensky too much discretion to cow his enemies and force them to sell their television channels to his friends.
  • His firms have huge unpaid debts to Naftogaz, the state wholesale supplier. This is money that could have been invested to raise domestic gas production. Meanwhile, a new Naftogaz CEO appointed by Mr Zelensky agreed to pay the state a fat dividend out of the firm’s frosty-day fund. This will help Mr Zelensky build roads, which are popular.
peterconnelly

U.S. Imposes Sanctions on Yacht Company That Caters to Russian Elites - The New York Times - 0 views

  • WASHINGTON — The U.S. government leveled sanctions against a yacht management company and its owners, describing them as part of a corrupt system that allows Russian elites and President Vladimir V. Putin to enrich themselves, the Treasury Department announced on Thursday.
  • “Russia’s elites, up to and including President Putin, rely on complex support networks to hide, move and maintain their wealth and luxury assets,” said Brian Nelson, the under secretary for terrorism and financial intelligence at the Treasury Department.
  • “We will continue to enforce our sanctions and expose the corrupt systems by which President Putin and his elites enrich themselves,” he added.
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  • According to a U.S. intelligence assessment, a group of investors led by one of Russia’s richest men, Gennady Timchenko, who has been under sanctions since 2014, provided the money to buy three ships: the Scheherazade, the Crescent and the Amadea, whose construction at a German shipyard was overseen by Imperial Yachts. Their combined cost of as much as $1.6 billion could have bought six new frigates for the Russian navy.
  • “Imperial Yachts conducts all its business in full compliance with laws and regulations in all jurisdictions in which we operate,” the company added. “We are not involved in our clients’ financial affairs.”
  • But Treasury officials disputed that contention in their announcement. U.S. and international authorities have moved to seize the three yachts connected to Mr. Kochman and his company.
  • In an interview Tuesday, before the new sanctions were announced, Elizabeth Rosenberg, the assistant secretary for terrorist financing and financial crimes at the Treasury Department, said that international cooperation to go after Russian oligarchs and their assets was increasing.
  • “It feels like we’re experiencing a sea change right now,” Ms. Rosenberg said. “It’s a huge leap forward on international cooperation for hunting assets, for freezing them and for pursuing law enforcement investigations and activity, including seizure activities.”
  • Treasury officials say taking action against oligarchs and the companies that help them spend their wealth will ultimately hurt the Russian government’s ability to wage war against Ukraine.
Javier E

How Billionaire Oligarchs Are Becoming Their Own Political Parties - NYTimes.com - 0 views

  • In 2010, the Citizens United decision by the Supreme Court effectively blew apart the McCain-Feingold restrictions on outside groups and their use of corporate and labor money in elections. That same year, a related ruling from a lower court made it easier for wealthy individuals to finance those groups to the bottom of their bank accounts if they so chose. What followed has been the most unbridled spending in elections since before Watergate. In 2000, outside groups spent $52 million on campaigns, according to the Center for Responsive Politics. By 2012, that number had increased to $1 billion.
  • The result was a massive power shift, from the party bosses to the rich individuals who ran the super PACs (as most of these new organizations came to be called). Almost overnight, traditional party functions — running TV commercials, setting up field operations, maintaining voter databases, even recruiting candidates — were being supplanted by outside groups.
  • With the advent of Citizens United, any players with the wherewithal, and there are surprisingly many of them, can start what are in essence their own political parties, built around pet causes or industries and backing politicians uniquely answerable to them. No longer do they have to buy into the system. Instead, they buy their own pieces of it outright, to use as they see fit. “Suddenly, we privatized politics,”
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  • Where does the money go? Americans for Prosperity obviously spends a lot on television, but it also maintains offices in 35 states with 600 paid staff members. The group funds phone banks, big-ticket events and many other details like beer cozies and water bottles. Its biggest chapter is in Florida, where its 50 paid staff members work out of 10 offices and constitute a year-round organization that rivals that of the state Republican Party.
  • the Koch brothers, whose own group, Americans for Prosperity, already has political operations in every state that Steyer is contesting, along with 28 others. The group says it will spend at least $125 million this year.
  • In 2012, it raised $115 million. It is impossible to know the identities of the donors, though the group’s annual closed-door conferences are regularly attended by many of the biggest conservative donors in the country, including the hedge-fund executive Foster Friess and the casino magnate Sheldon Adelson.
  • we have Michael Bloomberg, who has committed to spending $50 million to support gun-control legislation; his Independence USA PAC, meanwhile, is spending $25 million this fall to elect “centrists.” We have the TD Ameritrade founder Joe Ricketts and his group Ending Spending, which has spent roughly $10 million so far this year to elect fiscal conservatives to Congress, an effort that has drawn support from the billionaire hedge-fund executive Paul E. Singer, who has also devoted tens of millions to Republican candidates who share his views on Israel. We have Mark Zuckerberg and his FWD.us, with a budget of about $50 million to push an immigration overhaul. In 2014, as of early October, when the campaigns had yet to do their big final pushes, overall spending was already more than $444 million, according to the Center for Responsive Politics. Roughly $231 million was from the parties and their congressional committees, the rest from outside spending. The biggest chunk of that by far came from super PACs — more than $196 million.
  • the most important factor is the growth of the volunteer base of Americans for Prosperity, which it now numbers into the tens of thousands. The first lesson of party politics is that winning elections means getting out the vote, and getting out the vote means signing up volunteers. Phillips spends a lot of time thinking about what will keep them happy.
  • The movement is independent of the party, which is the way Phillips wants it. When Rick Scott said he would support an expansion of Medicaid under Obamacare, Americans for Prosperity let him know about its displeasure through a deluge of phone calls and letters and even a protest at the State Capitol. Scott ultimately made no effort to push it through the Legislature, many of whose Republican members have been supported by the group as well. “I think he started hearing from some other voices, A.F.P. and some of the other organizations,” Chris Hudson, the group’s Florida director, had said, “and I think they sort of superseded what was going on in his own staff.”
  • Phillips said the group’s volunteers would have it no other way. “They have to feel like the organization is genuinely a principled outfit,” he said. “If they think you’re just an appendage of the party, they can go to the party. Why do they need you?”Continue reading the main story
  • In 2012, though, Steyer read an essay in Rolling Stone (“Global Warming’s Terrifying New Math”), in which Bill McKibben, the writer and climate activist, suggested that fossil-fuel interests had too much money at stake to let the political system do anything about carbon emissions. The only alternative, McKibben wrote, was a mass movement, and the only way to start a mass movement was to articulate a consistent, fact-based moral argument for change. At that moment, Taylor said, “Tom realized that the climate threat was near, present, imminent, massive — and aggravates every other crisis, whether it’s hunger or civil rights.” He had to do something different. So a few months later he and Taylor invited McKibben to the ranch for a war council.
  • NextGen’s campaign largess was itself a capitulation to the post-Citizens United world. Steyer was applying pressure to the political system in a way no average American could. It seemed undemocratic. But Steyer saw it as simple pragmatism; the other side was “playing multiples,” he said, and he had to operate “in the real world the way the real world works.”
Javier E

'Exhibit A': How McKinsey Got Entangled in a Bribery Case - The New York Times - 0 views

  • McKinsey says it advised Boeing of the risks of working with the oligarch and recommended “character due diligence.” Attached to its evaluation was a single PowerPoint slide in which McKinsey described what it said was the potential partner’s strategy for winning mining permits. It included bribing Indian officials.
  • The partner’s plan, McKinsey noted, was to “respect traditional bureaucratic process including use of bribes.” McKinsey also wrote that the partner had identified eight “key Indian officials” — named in the PowerPoint slide — whose influence was needed for the deal to go through. Nowhere in the slide did McKinsey advise that such a scheme would be illegal or unwise.
  • The story of McKinsey’s role in the episode has remained hidden from public view for 12 years. Even today the firm’s ultimate recommendation and how its client, Boeing, responded remain something of a mystery, cloaked in the secrecy of grand jury proceedings. But McKinsey’s reference to illegal acts has thrust the firm into a tangled international battle over the extradition of Mr. Firtash, who has been charged in the United States with bribing Indian officials in anticipation of getting titanium for Boeing
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  • Neither McKinsey nor Boeing was charged in the case, and Boeing has not been accused of paying bribes. But several employees of the two companies are believed to have testified before a grand jury. Boeing continued to pursue the venture even after being advised that its partner’s plans included paying bribes, records show
  • As orders flooded in, Boeing executives knew well what was at stake. In an article about the Dreamliner, The M.I.T. Technology Review quoted a manager saying, “If we get it wrong, it’s the end.”
  • But Boeing faced a more basic question: Should it even be doing business with this group — largely little-known figures from India, Sri Lanka and Hungary? The exception was the leader and leading financier, Mr. Firtash, who had expertise as the owner of titanium processing plants in Ukraine.
  • This was the business plan that McKinsey was brought in to assess, the plan that its report described as including the paying of bribes.
  • then there was the curious timing of the Americans’ pursuit of Mr. Firtash, which the judge suspected was linked to his influence in Ukrainian politics, especially his help in electing the president, Viktor F. Yanukovych, in 2010.
  • As soon as it became clear that Mr. Yanukovych, under pressure from Russia, was reconsidering signing the European Union agreement, the judge pointed out, an American delegation traveled to Kiev to bring him in line.Facing the prospect that Mr. Firtash might sway Mr. Yanukovych and use his connections to help him remain in power, the United States asked Austria to arrest the oligarch, the judge said.
  • Then, a few days before the planned arrest, the documents show, came another urgent message: “As part of a larger strategy, U.S. authorities have determined we need to pass up this opportunity.” No arrest. No explanation of the larger strategy.
  • To the surprise of American officials, the judge denied extradition on the grounds that the request was politically motivated, whether or not Mr. Firtash was “sufficiently suspected” of breaking the law.
  • In response to questions from The Times, Dan Webb, one of Mr. Firtash’s lawyers and a former United States attorney in Chicago, said his client had nothing to do “with the creation or presentation of the PowerPoint slide proposing bribery and used by U.S. prosecutors to support extradition of Firtash.” He accused prosecutors of falsely telling Austrian officials that the slide constituted “clear proof” that Mr. Firtash was behind the bribery scheme, adding that “U.S. prosecutors never withdrew their false statement.
Javier E

Mikhail Khodorkovsky Interview: "Putin's Regime Is Going to End Very Soon" | The New Re... - 0 views

  • now I have a problem watching my Russian compatriots inside the country. I can’t look at them. I can’t face them. I hope that this will pass inside of me. But when they say, let’s continue to kill Ukrainians, I don’t want to have anything to do with this.… My mind is split between my friends in Ukraine and my co-citizens in Russia. My friends in Russia are normal, but I know a lot of people there with a different opinion. There are a lot of people like that.”
  • “What you already asked, no one asked me before: how I feel as a Russian when a fascist regime is established in my own homeland and Russia starts a war with a homeland where my family and friends are. It is like a war between Americans and Canadians. You basically wake up one morning, and you realize that your Russian identity has been cracked. Maybe you feel like you don’t want to be Russian anymore, and you also understand that this is not possible. You are Russian.”
Javier E

The Untold Story of 'Russiagate' and the Road to War in Ukraine - The New York Times - 0 views

  • Kilimnik shared a secret plan whose significance would only become clear six years later, as Vladimir V. Putin’s invading Russian Army pushed into Ukraine.
  • Known loosely as the Mariupol plan, after the strategically vital port city, it called for the creation of an autonomous republic in Ukraine’s east, giving Putin effective control of the country’s industrial heartland, where Kremlin-armed, -funded and -directed “separatists” were waging a two-year-old shadow war that had left nearly 10,000 dead. The new republic’s leader would be none other than Yanukovych. The trade-off: “peace” for a broken and subservient Ukraine.
  • Trump was already suggesting that he would upend the diplomatic status quo; if elected, Kilimnik believed, Trump could help make the Mariupol plan a reality. First, though, he would have to win, an unlikely proposition at best. Which brought the men to the second prong of their agenda that evening — internal campaign polling data tracing a path through battleground states to victory. Manafort’s sharing of that information — the “eyes only” code guiding Trump’s strategy — would have been unremarkable if not for one important piece of Kilimnik’s biography: He was not simply a colleague; he was, U.S. officials would later assert, a Russian agent.
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  • what the plan offered on paper is essentially what Putin — on the dangerous defensive after a raft of strategic miscalculations and mounting battlefield losses — is now trying to seize through sham referendums and illegal annexation. And Mariupol is shorthand for the horrors of his war, an occupied city in ruins after months of siege, its hulking steelworks spectral and silenced, countless citizens buried in mass graves.
  • Putin’s assault on Ukraine and his attack on American democracy have until now been treated largely as two distinct story lines.
  • Yet those two narratives came together that summer night at the Grand Havana Room. And the lesson of that meeting is that Putin’s American adventure might be best understood as advance payment for a geopolitical grail closer to home: a vassal Ukrainian state.
  • Even now, some influential voices in American politics, mostly but not entirely on the right, are suggesting that Ukraine make concessions of sovereignty similar to those contained in Kilimnik’s plan, which the nation’s leaders categorically reject.
  • This second draft of history emerges from a review of the hundreds of pages of documents produced by investigators for the special counsel, Robert S. Mueller III, and for the Republican-led Senate Select Committee on Intelligence; from impeachment-hearing transcripts and the recent crop of Russiagate memoirs; and from interviews with nearly 50 people in the United States and Ukraine, including four hourlong conversations with Manafort himself.
  • the persistent, surreptitious effort to bring the Mariupol plan to life. The plan was hardly the only effort to trade peace in Ukraine for concessions to Putin; many obstacles stood in its way. And its provenance remains unclear: Was it part of a Putin long game or an attempt by his ally, Yanukovych, to claw back power? Either way, the prosecutors who uncovered the plan would come to view it as potential payoff for the Russian president’s election meddling.
  • The examination also brings into sharper relief the tricks of Putin’s trade as he pressed his revanchist mission to cement his power by restoring the Russian empire and weakening democracy globally. He pursued that goal through the cunning co-optation of oligarchs and power brokers in the countries in his sights, while applying ever-evolving disinformation techniques to play to the fears and hatreds of their people.
  • Manafort, a political operative known for treating democracy as a tool as much as an idea.
  • he had achieved great riches by putting his political acumen to work for the country’s Kremlin-aligned oligarchs, helping install a government that would prove pliant in the face of Putin’s demand
  • Then he helped elect an American president whose open admiration of the Russian strongman muddied more than a half-century of policy promoting democracy.
  • In the end, Putin would not get out of a Trump presidency what he thought he had paid for, and democracy would bend but not yet break in both the United States and Ukraine. But that, as much as anything, would set the Russian leader on his march to war.
  • he firm specialized in covering over the bloody records of dictators like Mobutu Sese Seko of Zaire and Ferdinand Marcos of the Philippines with copious coats of high-gloss spin, presenting them as freedom-loving democrats.
  • Together with Roger Stone, Manafort helped develop the slashing style of conservative politics, pushing “hot buttons” to rile up base voters and tar opponents.
  • Long before the Trump-era investigations, Manafort had established himself in Washington and abroad as a grand master of the political dark arts
Javier E

Elon Musk, Savant Idiot? - by Charlie Sykes - Morning Shots - 0 views

  • Confusing entertainment with substance, we turned celebrities into senators, and reality tv stars into presidents; millions of Americans think that an over-leveraged performative asshole has somehow cracked the code of... well, pretty much everything.
  • Our starf**king culture simply can’t get enough of starf**king someone who is not just famous, but rich beyond the dreams of avarice. And has 114 million followers on Twitter.
  • In a long-vanished century, F. Scott Fitzgerald wrote that the rich “are different from you and me,” but the new class of FU rich are something else altogether. They live in self-created bubbles of reinforcement that let them live lives of self-fondling solipsism
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  • This is their precious. But marinating in the power, celebrity, and lulz long enough turns the oligarchs into Gollums, like the one who exposed himself so fabulously and relentlessly this week.
Javier E

What Our Words Tell Us - NYTimes.com - 0 views

  • Google released a database of 5.2 million books published between 1500 and 2008. You can type a search word into the database and find out how frequently different words were used at different epochs.
  • The first element in this story is rising individualism
  • between 1960 and 2008 individualistic words and phrases increasingly overshadowed communal words and phrases.
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  • Klein adds the third element to our story, which he calls “governmentalization.” Words having to do with experts have shown a steady rise.
  • On the subject of individualization, he found that the word “preferences” was barely used until about 1930, but usage has surged since. On the general subject of demoralization, he finds a long decline of usage in terms like “faith,” “wisdom,” “ought,” “evil” and “prudence,” and a sharp rise in what you might call social science terms like “subjectivity,” “normative,” “psychology” and “information.”
  • The second element of the story is demoralization. A study by Pelin Kesebir and Selin Kesebir found that general moral terms like “virtue,” “decency” and “conscience” were used less frequently over the course of the 20th century. Words associated with moral excellence, like “honesty,” “patience” and “compassion” were used much less frequently.
  • Over the past half-century, society has become more individualistic. As it has become more individualistic, it has also become less morally aware, because social and moral fabrics are inextricably linked. The atomization and demoralization of society have led to certain forms of social breakdown, which government has tried to address, sometimes successfully and often impotently.
  • This story, if true, should cause discomfort on right and left.
  • Conservatives sometimes argue that if we could just reduce government to the size it was back in, say, the 1950s, then America would be vibrant and free again. But the underlying sociology and moral culture is just not there anymore. Government could be smaller when the social fabric was more tightly knit, but small government will have different and more cataclysmic effects today when it is not.
  • Liberals sometimes argue that our main problems come from the top: a self-dealing elite, the oligarchic bankers. But the evidence suggests that individualism and demoralization are pervasive up and down society, and may be even more pervasive at the bottom. Liberals also sometimes talk as if our problems are fundamentally economic, and can be addressed politically, through redistribution. But maybe the root of the problem is also cultural. The social and moral trends swamp the proposed redistributive remedies.
  • these gradual shifts in language reflect tectonic shifts in culture. We write less about community bonds and obligations because they’re less central to our lives.
Javier E

Trump Election Shows Civics Education Has Failed - The Atlantic - 0 views

  • The 2016 campaign produced the unthinkable: the election of a presidential candidate whom members of his own party described as a classic authoritarian.
  • How is it possible that tens of millions of Americans supported a presidential candidate who consistently rejected basic constitutional principles that previously had been accepted across the political spectrum?
  • freedom of religion (proposing a ban on Muslim immigrants), freedom of the press (calling for opening up libel laws to go after critics), the rule of law (endorsing the murder of the families of terrorists), and the independence of the judiciary (questioning the bias of a judge based on ethnicity).
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  • What set Donald Trump apart, wrote the University of Texas historian Jeffrey Tulis to The New York Times, is that “no other previous major party presidential candidate has felt so unconstrained by … constitutional norms.”
  • A former top aide to President George W. Bush wrote that in the Republican nominee, “we have reached the culmination of the founders’ fears: Democracy is producing a genuine threat to the American form of self-government.”
  • Public schools are failing at what the nation’s founders saw as education’s most basic purpose: preparing young people to be reflective citizens who would value liberty and democracy and resist the appeals of demagogues
  • the 2016 election should spur renewed emphasis on the need for schools to instill in children an appreciation for civic values and not just a skill set for private employment.
  • the bipartisan education manta has been that education should prepare students to be “college-and-career  ready,” with no mention of becoming thoughtful democratic citizens
  • The Founders wanted voters to be educated so they could discern serious leaders of high character from con men who do not have the nation’s interests at heart. Beyond that, public education in the United States was also meant to instill a love of liberal democracy: a respect for the separation of powers, for a free press and free religious exercise, and for the rights of political minorities. Educating common people was the answer to the oligarchs who said the average citizen could not be trusted to choose leaders wisely.
  • Horace Mann, saw public education as the bedrock of the country’s democracy. He wrote: “A republican form of government, without intelligence in the people, must be, on a vast scale, what a mad-house, without superintendent or keepers, would be on a small one.” Teachers, the Supreme Court Justice Felix Frankfurter wrote, should be regarded “as the priests of our democracy.”
  • Yet in recent years, democracy has been given short shrift in American public schooling in two important respects: the curriculum that is explicitly taught to students does not place democratic values at the center
  • and the “hidden” curriculum of what students observe on a daily basis no longer reinforces the importance of democracy. The failure of schools to model democracy for students is critical
  • With the rise of economic globalization, educators have emphasized the importance of serving the needs of the private marketplace rather than of preparing citizens for American democracy.
  • the Founders were deeply concerned with finding ways to ensure that their new democracy, which through the franchise provided ultimate sovereignty to the collective views of average citizens, not fall prey to demagogues. The problem of the demagogue, the Founders believed, was endemic to democracy, and they saw education as the safeguard of America’s system of self-governance.
  • In a telling sign, in 2013, the governing board of the National Assessment for Educational Progress dropped fourth- and 12th-grade civics and American history as a tested subject in order to save money.
  • Likewise, in recent years, promoting democratic values in the school environment itself by respecting the voices of parents and teachers alike—a sort of "implicit curriculum"—has not been a priority
  • Reformers didn’t like the influence teachers’ unions exercised in democratic elections, so they advocated for market-driven reforms that would reduce the influence of elected officials such as non-unionized charter schools, as well as for state takeovers of urban districts.
  • Civics literacy levels are dismal. In a recent survey, more than two-thirds of Americans could not name all three branches of the federal government.
  • Education Secretary John King said only a third of Americans could identify Joe Biden as the vice president or name a single Supreme Court justice. Far worse, declining proportions say that free elections are important in a democratic society.
  • When asked in the World Values Survey in 2011 whether democracy is a good or bad way to run a country, about 17 percent said bad or very bad, up from about 9 percent in the mid-1990s.
  • Among those ages 16 to 24, about a quarter said democracy was bad or very bad, an increase from about 16 percent from a decade and a half earlier. Some 26 percent of millennials said it is “unimportant” that in a democracy people should “choose their leaders in free elections.”
  • Among U.S. citizens of all ages, the proportion who said it would be “fairly good” or “very good” for the “army to rule,” has risen from one in 16 in 1995, to one in six today.
  • a June 2016 survey by the Public Religion Research Institute and the Brookings Institution found that a majority of Americans showed authoritarian (as opposed to autonomous) leanings.
  • Moreover, fully 49 percent of Americans agreed that “because things have gotten so far off track in this country, we need a leader who is willing to break some rules if that’s what it takes to set things right.”
  • in 2016, the United States elected as president an individual whom the Brookings Institution Scholar Robert Kagan called “the most dangerous threat to U.S. democracy since the Civil War.”
  • schools need to put democracy back into education. Rigorous courses in history, literature, and civics would cultivate knowledge of democratic practices and a belief in democratic values.
  • In addition to teaching democratic values directly, what if educators and policymakers thought more carefully about addressing what is taught to students implicitly through how they choose to run schools? Are parents and community members a part of decision-making or are they shut out by state takeovers and billionaire philanthropists call the shots?
  • a growing number of school districts (including Rochester) are also promoting democratic values through socioeconomic and racial school integration of student bodies at the school and classroom levels. Integrated learning environments underline the democratic message that in America, everyone is equal. By contrast, when American schoolchildren are educated in what are effectively apartheid schools—divided by race and class—the democratic message of equal political rights and heritage is severely undermined.
  • demagogues can more effectively inflame passions against “others”—Muslims, Mexican immigrants, or African Americans—when, growing up, white Christian schoolchildren do not personally know many members of these groups. A large body of research finds that integrated schools can reduce prejudice and racism that stems from ignorance and lack of personal contact
Javier E

The Dangers of Disruption - The New York Times - 0 views

  • In Silicon Valley, where I live, the word “disruption” has an overwhelmingly positive valence: Thousands of smart, young people arrive here every year hoping to disrupt established ways of doing business — and become very rich in the process.
  • For almost everyone else, however, disruption is a bad thing. By nature, human beings prize stability and order. We learn to be adults by accumulating predictable habits, and we bond by memorializing our ancestors and traditions.
  • So it should not be surprising that in today’s globalized world, many people are upset that vast technological and social forces constantly disrupt established social practices, even if they are better off materially.
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  • globalization has produced enormous benefits. From 1970 to the 2008 financial crisis, global output quadrupled, and the benefits did not flow exclusively to the rich. According to the economist Steven Radelet, the number of people living in extreme poverty in developing countries fell from 42 percent in 1993 to 17 percent in 2011, while the percentage of children born in developing countries who died before their fifth birthday declined from 22 percent in 1960 to less than 5 percent by 2016.
  • statistics like these do not reflect the lived experience of many people. The shift of manufacturing from the West to low labor-cost regions has meant that Asia’s rising middle classes have grown at the expense of rich countries’ working-class communities
  • from a cultural standpoint, the huge movement of ideas, people and goods across national borders has disrupted traditional communities and ways of doing business. For some this has presented tremendous opportunity, but for others it is a threat.
  • This disruption has been closely associated with the growth of American power and the liberal world order that the United States has shaped since the end of World War II. Understandably, there has been blowback, both against the United States and within the nation.
  • Liberalism is based on a rule of law that maintains a level playing field for all citizens, particularly the right to private property
  • The democratic part, political choice, is the enforcer of communal choices and accountable to the citizenry as a whole
  • Over the past few years, we’ve witnessed revolts around the world of the democratic part of this equation against the liberal one
  • Vladimir Putin, perhaps the world’s chief practitioner of illiberal democracy. Mr. Putin has become very popular in Russia, particularly since his annexation of Crimea in 2014. He does not feel bound by law: Mr. Putin and his cronies use political power to enrich themselves and business wealth to guarantee their hold on power.
  • Mr. Orbán, Mr. Putin and Mr. Erdogan all came to power in countries with an electorate polarized between a more liberal, cosmopolitan urban elite — whether in Budapest, Moscow or Istanbul — and a less-educated rural voter base. This social division is similar to the one that drove the Brexit vote in Britain and Donald Trump’s rise in the United States..
  • Mr. Trump’s ascent poses a unique challenge to the American system because he fits comfortably into the trend toward illiberal democracy.
  • Like Mr. Putin, Mr. Trump seemsto want to use a democratic mandate to undermine the checks and balances that characterize a genuine liberal democracy. He will be an oligarch in the Russian mold: a rich man who used his wealth to gain political power and who would use political power to enrich himself once in office
  • The citizens of India and Japan have elected nationalist leaders who many say they believe champion a more closed form of identity than their predecessors
  • How far will this trend toward illiberal democracy go? Are we headed for a period like that of the early 20th century, in which global politics sank into conflict over closed and aggressive nationalism?
  • The outcome will depend on several critical factors, particularly the way global elites respond to the backlash they have engendered.
  • In America and Europe, elites made huge policy blunders in recent years that hurt ordinary people more than themselves.
  • Deregulation of financial markets laid the groundwork for the subprime crisis in the United States, while a badly designed euro contributed to the debt crisis in Greece, and the Schengen system of open borders made it difficult to control the flood of refugees in Europe. Elites must acknowledge their roles in creating these situations.
  • Now it’s up to the elites to fix damaged institutions and to better buffer those segments of their own societies that have not benefited from globalization to the same extent.
  • Above all, it is important to keep in mind that reversing the existing liberal world order would likely make things worse for everyone, including those left behind by globalization. The fundamental driver of job loss in the developed world, after all, is not immigration or trade, but technological change.
  • We need better systems for buffering people against disruption, even as we recognize that disruption is inevitable. The alternative is to end up with the worst of both worlds, in which a closed and collapsing system of global trade breeds even more inequality.
Javier E

The Soviet Union collapsed overnight. Don't assume western democracy will last for ever... - 0 views

  • Since Trump’s victory in November 2016, it has become possible to believe a similar collapse will happen in the west, to globalisation and liberal values.
  • The parallels are obvious. We too have lived for 30 years under an economic system that proclaimed its own permanence. Globalisation was an unstoppable natural process; free-market economics simply the natural state of things.
  • But when the country that designed globalisation, imposed it and benefited from it most votes against it, you have to consider the possibility that it is going to end, and suddenly
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  • you also have to consider a possibility that – if you are a liberal, humanist democrat – may be even more shocking: that oligarchic nationalism is the default form of failing economies.
  • In economics, political science and the study of international relations there has been, for about three decades, a general assumption that the current framework is permanent. Just as in Soviet academia, if globalisation turns out to have been just a temporary and reversible thing, textbooks once revered will have to lie abandoned.
  • there’s one big difference. The dissidents of the late Soviet era fought for democracy and human rights under the general concept of “the west”. For us, if xenophobic populism triumphs, there will be no “west” to aspire to: if liberal, democratic societies begin to go the way of Orbán’s Hungary, there will be no external power to help us.
  • Our last great hope will be ourselves. And there are enough of us to stop this second great collapse towards oligarchy and nationalism.
Javier E

Bernard-Henri Lévy: Jews, Be Wary of Trump - The New York Times - 0 views

  • There is a law that governs the relations between the Jews and the rest of the world.
  • That law was articulated in one form at the time of the trial of Adolf Eichmann, when the great Jewish thinker Gershom Scholem faulted Hannah Arendt for falling short of “ahavat Israel” — for showing insufficient “love of the Jewish people.”
  • The essential thing is that President Trump thinks they did, that he seems to see Jews as the caricature of the New York establishment that, for decades, took him for an agreeable but vulgar showman.
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  • that law says that demonstrations of love count for less, paradoxically, than love itself. It says, to be precise, that gestures of friendship, when they do not come from the bottom of the heart and are not built on sincere love — that is, finally, on a deep and true knowledge of the love object — are gestures that eventually may turn into their opposite.
  • we cannot rule out the possibility that Trump’s series of ostentatiously promising signals directed at Israel may have sinister effects in the long or even short term.
  • Those signals may, for example, strengthen the most shortsighted and therefore suicidal fringe of Israeli politics. It may send the wrong signal to those who would be only too happy to see the United States set the example of making unilateral, unnegotiated decisions, thereby opening the way to other shows of force.
  • In the United States, it may generate an overly enthusiastic embrace by pro-Israel Jews of a volatile president (one likely, depending on the needs of his deals, to change his mind), one who is so deeply unpopular with so many Americans that his embrace of Israel, however fleeting, could endanger the bipartisan consensus that has been so beneficial to Israel over the decades.
  • I cannot claim any knowledge of Donald Trump’s “heart” or of the sincerity of his commitment to the Jewish state. But there have been indications going back decades.
  • These statements suggest, to say the least, a certain contempt.
  • More precisely, they reflect that well-known variety of contempt that, according to Freud, serves to anticipate and defend the ego against the presumed contempt of the other.
  • This love is precisely what is required of an American president in dealings affecting Israel.
  • This is a perfect example of the self-defensive contempt that has so often fed anti-Semitism, with the Jews appearing, once again, as representatives of an elite that patronized him and against whom he can, now that he is in power, quietly take his revenge.
  • as in ancient Rome, the triumph of nihilism can enable a pig farmer — anybody — to become emperor.
  • Jewish wisdom, which responds to the situation as follows: “We had contempt for Diocletian the swineherd, but we are ready to honor Diocletian the emperor provided he, like Saul — who, before becoming king had tended donkeys — heeds the prophecy, rises to his office, and becomes a new man.”
  • And, above all, it is a good allegory of the double-edged favors, or, if you will, the poison apples, proffered by a humiliated swineherd, eager for revenge, who decides to show Jon Stewart and his fellow Jews that he is indeed smarter than they are.
  • In the face of this situation, nothing is more important, it seems to me, than to maintain a measure of distance.
  • They must not forget that, no matter how many times Mr. Trump declares his love for Israel, for Benjamin Netanyahu or anyone else, he will remain a bad shepherd who respects only power, money and the perquisites of his palaces, while caring nothing for miracles, of course, and not a whit for the vocation of study and the cultivation of intelligence that are the light of the Jewish tradition.
  • And they should be aware, finally, that in this period that has been labeled, for lack of a better word, populist, and of which the American election is but an outsize symptom; in a time when thought is attacked from all sides and when lies are flourished with unparalleled arrogance and aplomb; in this new political culture that has now encircled the earth, one in which, from the American plutocrats to their Russian oligarch cousins, the swineherds slap their pedigree shamelessly on imperial palaces, the little Jewish nation has no part to play.
  • To ally with that sort of “populism” would be to betray Israel’s calling.
  • Any sacrifice of the calling to intellectual, moral and human excellence; any renunciation of the duty of exceptionalism that — from Rabbi Yehuda to Kafka and from Rashi to Proust and Levinas — has provided the ferment for its almost incomprehensible resistance; any concession, in a word, to Trumpian nihilism would be the most atrocious of capitulations, one tantamount to suicide.
Javier E

The Games Putin Plays - NYTimes.com - 0 views

  • there is a vast difference between Putin’s grand strategy and both its Czarist and its Soviet antecedents.
  • The czars sought a “Holy Alliance” to defend a still-extant ancien régime — a rooted, hierarchical system that still governed many 19th-century European societies. But today’s Russia, brutalized by Communism and then taken over by oligarchs and grifters, is not a traditional society in any meaningful sense of the term, and the only thing it has in common with many of its potential developing-world allies is a contempt for democratic norms. In the Romanov era, the throne-and-altar idea still had a real claim to political legitimacy. But there is no comparable claim Putin can make for his own authority, and no similar mystique around his client dictators
  • The Soviets’ claim to be in history’s vanguard, meanwhile, earned them allies and fellow travelers not only in Latin America, Asia and Africa, but among the best and brightest of the liberal West. No comparable Western fifth column seems likely to emerge to enable Putin’s goals
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  • Like Putin’s traditionalism, Chávez’s neosocialism was proposed as an ideological challenger to the American-led world order. (And Chávez had more American cheerleaders than does Putin.) But like Putinism, Chavismo lacks basic legitimacy absent the threat of violence and repression.
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