'Panama Papers': Putin's circle

[webfact]

'Panama Papers': Putin's circle



MOSCOW: -- For years there have been rumours about Vladimir Putin’s secret wealth. But a detailed picture of the hidden financial dealings of the Russian President remained elusive.

The so-called Panama Papers may disclose an even bigger network than imagined. Putin’s name does not appear in the leaked documents, but those of some of his very close friends do.

These are comrades whose history with Putin goes back decades, to Saint Petersburg, known as Leningrad before the fall of the Soviet Union.

That’s where Putin met Sergei Roldugin, who rose to fame as a cellist and conductor. He introduced Putin to his first wife, Lyudmila, and is the godfather of their daughter Maria.

Both men are described as best friends.

Another close friend whose name appears in the leaked papers, Yuri Kovalchuk, is often referred to as Putin’s personal banker. He’s at the helm of Rossiya bank, based in St. Petersburg and at the heart of the offshore financial dealings.

Rossiya bank helps create shell companies in Roldugin’s name, such as Sonnette Overseas, or International Media overseas. Seven companies in his name are registered offshore — in the tax havens of Panama, Belize and the Virgin Islands.

The shell companies are registered via a discrete law firm specialized in offshore planning, Mossack Fonseca, which later signs off loans to them.

The loans come from the Russian Commercial Bank in Cyprus, a subsidiary of the Russian state-owned bank VTB.

And the funds go into the coffers of the offshore companies. One of them, Sandalwood Continental, in the Virgin Islands, received more than $1 billion in loans between 2009 and 2012.

During that period, Sandalwood reportedly lent more than $10 million to the ski resort of Igora, near Saint Petersburg, where Putin’s daughter Katerina threw a lavish wedding party in 2013.

It’s claimed up to $2 billion have been funneled outside of Russia through President Putin’s close friends.

The Kremlin has slammed the revelations as lies attempting to destabilise the president.

-- (c) Copyright Euronews 2016-04-05

[webfact]

Leaks about offshore accounts leave Russians unimpressed
By NATALIYA VASILYEVA

MOSCOW (AP) — In the list of presidents, prime ministers, sheikhs, billionaires and other magnates cited in a sweeping worldwide investigation into hidden assets in offshore accounts, there was an odd man out: A Russian cellist.

Up until now, 64-year-old Sergei Roldugin was known only in the Russian music community — as a People's Artist of Russia and the artistic director of the House of Music in St. Petersburg. What makes him stand out from other Russian musicians, however, is his close ties to President Vladimir Putin.

Roldugin features in Putin's early autobiography as a close friend and the godfather of Putin's eldest daughter, Maria. He pursued a musical career, and despite the fact that he never became a tycoon like many of Putin's other friends, he did somehow acquire a stake in the Rossiya bank, one of the first Russian firms slapped with U.S. sanctions following Russia's 2014 annexation of Crimea.

The U.S. Treasury in 2014 described the bank as being "designated for providing material support to government officials" and co-owned by members of Putin's inner circle. But unlike other Putin friends who have built flourishing businesses in Russia, Roldugin, whose stake in Rossiya was reported at 3.3 percent, was not slapped with sanctions.

A myriad of documents that the Washington-based International Consortium of Investigative Journalists gained access to showed Roldugin — or someone posing as him — skillfully operating affiliated companies that controlled a significant share of a business empire that earned tens of millions of rubles per day from murky deals. The companies received millions from Putin's friends and Russian billionaires as well as preferential loans from a Russia-controlled Cyprus-based bank.

The journalists who analyzed the leaked documents from the Panamanian law firm Mossack Fonseca, one of the world's biggest creators of shell companies, say the combined turnover of a company that Roldugin is reported to have owned through an intermediary between 2009 and 2012 was around $2 billion.

When the Novaya Gazeta newspaper, which led the ICIJ investigation in Russia, approached Roldugin after a concert, the cellist had a friendly chat with the reporter but refused to talk about the offshore companies, saying the subject was "delicate."

Roldugin was unavailable for comment on Monday. A receptionist at the St. Petersburg House of Music said he was not in.

The release of what has become known as the Panama Papers has sent officials in countries around the world scrambling. Some have pledged to investigate claims of possible tax evasion, others like the prime minister of Iceland and the president of Ukraine face political storms over their alleged involvement in offshore companies.

In Russia, however, the trove of documents showing a money trail leading close to the president has gone largely unnoticed.

Following hours of silence, state-owned Channel One in its 6 p.m. bulletin reported the story, leading with the denial by Putin's spokesman, Dmitry Peskov, and mentioning the dealings involving the Ukrainian president. The TV report said "many wonder" what could have triggered the investigation and alleged that the leak may have been a U.S.-orchestrated attempt to remove Panama as a tax haven since it is competing for tax revenue.

Peskov blamed Western media for focusing on Putin even though he was not directly linked to any offshore activity.

He suggested the ICIJ had ties to the U.S. government. The ICIJ is not funded by the government and is part of the nonprofit, non-partisan Center for Public Integrity.

"It's obvious that there are many journalists there whose main profession is unlikely to be journalism," he said, alleging that "former employees of the State Department, the CIA, other security services" may have been involved in the publication of the leaks.

Peskov said Roldugin was a friend of Putin's but added the president "has very many friends."

In past years, as Putin's friends were building fortunes by getting lucrative state contracts with no or little competition, independent media in Russia have published countless investigations suggesting a conflict of interest at the least — or possibly major corruption. These reports, however, did not lead to any official investigations, Russian government reshuffling or public discontent.

Arguably the only exception was last year's protest by truck drivers who rallied against a hefty new road tax imposed by a company co-owned by a son of one of Putin's friends.

Russian experts said even if the offshore scandal was getting coverage on Russian television, Putin will still come out of it unscathed.

"There aren't any accounts directly connecting Putin to the companies, but even if there were, it is unlikely that this would shock his supporters in Russia," Alexander Baunov of the Carnegie Center in Moscow told The Associated Press.

Putin's detractors, he said, are looking in the wrong places for problems that could potentially destabilize his government.

What could be disastrous for Putin? "Anything that brings Russia back to the 1990s," said Baunov, referring to the withholding of salaries and a slump in living standards.

In a country where all officials are believed to be corrupt by default, a revelation of corruption in Putin's inner circle or even his own misdeeds are not viewed as much of a sin.

"In a healthy society, all those friends of the national leader would already be behind bars while the leader himself would be a pariah," Dmitry Gudkov, the only Russian lawmaker who voted against the Crimean annexation said in a blog Monday. "In our (society) the reaction is: 'So what? He does not drink newborn babies' blood, thanks for this.' We know things could be worse."

While Russian opposition activists were fuming on social media about the Panama Papers revelations, the reports left many more Russians unmoved.

"Seriously, if someone had posted a photo of Putin watching 'Peppa Pig' it would have caused more of a stir," blogger Ilya Varlamov tweeted, referring to a popular cartoon series.

Unlike the reclusive banker Yuri Kovalchuk or Putin's childhood friend Arkady Rotenberg, the soft-spoken Roldugin has never hidden from the press, giving interviews about his love for music and Russian musical talent.

"I don't like talking about Putin. It's private, I hope you understand," Roldugin said in a 2014 interview.

But when asked where he thinks Putin's government is failing, he said: "I think there is not enough effort to fight corruption in Russia. I would like to see more decisive action."
__

James Ellingworth, Katherine Jacobsen and Iuliia Subbotovska contributed to this report.


-- (c) Associated Press 2016-04-05

[craigt3365]

In a country where all officials are believed to be corrupt by default, a revelation of corruption in Putin's inner circle or even his own misdeeds are not viewed as much of a sin.

Pretty sad when a country's people don't care about corruption by their elected officials. And leaves them poor.

http://www.asianews.it/news-en/Corruption-takes-50-per-cent-of-Russia%E2%80%99s-GDP-19242.html

Corruption takes 50 per cent of Russia’s GDP

[helpisgood]

In a country where all officials are believed to be corrupt by default, a revelation of corruption in Putin's inner circle or even his own misdeeds are not viewed as much of a sin.

Pretty sad when a country's people don't care about corruption by their elected officials. And leaves them poor.

http://www.asianews.it/news-en/Corruption-takes-50-per-cent-of-Russia%E2%80%99s-GDP-19242.html

Corruption takes 50 per cent of Russia’s GDP

Thanks for the article! I would never had thought that corruption had gotten so prevalent.

Yes, it is sad.

[bassman]

Putin believed by many to be the worlds richest man. These Panama papers are just the tip of the iceberg on so many rulers and politicians hiding their wealth stolen from the "people". Still waiting for Bill and Hillary Clinton and their shady dealings to show up somewhere sometime.

[craigt3365]

Putin believed by many to be the worlds richest man. These Panama papers are just the tip of the iceberg on so many rulers and politicians hiding their wealth stolen from the "people". Still waiting for Bill and Hillary Clinton and their shady dealings to show up somewhere sometime.

Luckily, in the West, freedom of the press allows things like this to be published. Stories abound about their shady deals. Here's but one:

http://nypost.com/2015/05/03/clinton-cash-is-a-blistering-indictment-of-hill-and-bills-behavior/

[Berkshire]

Putin believed by many to be the worlds richest man. These Panama papers are just the tip of the iceberg on so many rulers and politicians hiding their wealth stolen from the "people". Still waiting for Bill and Hillary Clinton and their shady dealings to show up somewhere sometime.

Or more likely a certain Mr. D. Trump.

[Khon Kaen Dave]

I wonder if Tony and his arrogant wife Cherie are getting the sweats round about now?

[EyesWideOpen]

Putin believed by many to be the worlds richest man. These Panama papers are just the tip of the iceberg on so many rulers and politicians hiding their wealth stolen from the "people". Still waiting for Bill and Hillary Clinton and their shady dealings to show up somewhere sometime.

I have heard that rumor for years, and suspected it

to be true. After all he is in essence looting an entire

country. He must be crapping is his pants, as his

spokesman in essence issued a preemptive strike

just before the Panama papers came out.

[Class C]

Meanwhile, a little closer to home:

"Panama Papers: David Cameron embroiled in tax avoidance row after details of father's Bahamas business interests are leaked"

http://www.telegraph.co.uk/news/2016/04/04/panama-papers-tax-haven-used-by-politicians-and-celebrities/

[Berkshire]

Putin believed by many to be the worlds richest man. These Panama papers are just the tip of the iceberg on so many rulers and politicians hiding their wealth stolen from the "people". Still waiting for Bill and Hillary Clinton and their shady dealings to show up somewhere sometime.

I have heard that rumor for years, and suspected it

to be true. After all he is in essence looting an entire

country. He must be crapping is his pants, as his

spokesman in essence issued a preemptive strike

just before the Panama papers came out.

"Crapping in his pants?" Not likely. If he was an ordinary citizen, maybe. But as the leader of Russia, he's nearly untouchable. Denial is a powerful weapon.

[Ulic]

Putin is a kleptocrat, no news there. Spell it all out, post it and let the Russian populace

make of it what they will. As they say, you can lead a horse to water.......................if Putin

is who they want, he is who they want. I shake my head at their stupidity but as they say

here so often, "up to you."

[JHolmesJr]

I am amazed people still find this shocking….was there ever any doubt these guys are up to their eyeballs in bending the law to their own whims?

This is just confirmation….even if the whole thing is exposed in greater detail, no one will do anything to bring anyone to justice..

[craigt3365]

I am amazed people still find this shocking….was there ever any doubt these guys are up to their eyeballs in bending the law to their own whims?

This is just confirmation….even if the whole thing is exposed in greater detail, no one will do anything to bring anyone to justice..

Not so sure about that. Many prominent people have been brought to justice over this. Though many more obviously should! LOL

http://en.censor.net.ua/video_news/290393/_13_billion_arrested_in_accounts_of_offshore_companies_of_yanukovych_and_co_video

[JHolmesJr]

I am amazed people still find this shocking….was there ever any doubt these guys are up to their eyeballs in bending the law to their own whims?

This is just confirmation….even if the whole thing is exposed in greater detail, no one will do anything to bring anyone to justice..

Not so sure about that. Many prominent people have been brought to justice over this. Though many more obviously should! LOL

http://en.censor.net.ua/video_news/290393/_13_billion_arrested_in_accounts_of_offshore_companies_of_yanukovych_and_co_video

LOL…Ukraine….that's just actions taken by other crooks because they never got their cut of the loot.

BTW what a sloppy article….1.3 billion in funds arrested?!!!

Really?

[craigt3365]

I am amazed people still find this shocking….was there ever any doubt these guys are up to their eyeballs in bending the law to their own whims?

This is just confirmation….even if the whole thing is exposed in greater detail, no one will do anything to bring anyone to justice..

Not so sure about that. Many prominent people have been brought to justice over this. Though many more obviously should! LOL

http://en.censor.net.ua/video_news/290393/_13_billion_arrested_in_accounts_of_offshore_companies_of_yanukovych_and_co_video

LOL…Ukraine….that's just actions taken by other crooks because they never got their cut of the loot.

BTW what a sloppy article….1.3 billion in funds arrested?!!!

Really?

I'm not going to do the research for you. Easy to find on the internet. But does this help?

https://en.wikipedia.org/wiki/List_of_federal_political_scandals_in_the_United_States

[Jonmarleesco]

Well, Russian oligarchs help oil the Tories' financial wheels, obviously at a level sufficient to give them (as well as sheiks, media moguls, et al) an unacceptable level of influence over Tory policy. So the questions are: just how much has found its way into entities controlled by the Dave and George duo, and how much tax is being avoid(evad)ed?

Edited April 5, 2016 by Jonmarleesco

[Jonmarleesco]

In a country where all officials are believed to be corrupt by default, a revelation of corruption in Putin's inner circle or even his own misdeeds are not viewed as much of a sin.

Pretty sad when a country's people don't care about corruption by their elected officials. And leaves them poor.

http://www.asianews.it/news-en/Corruption-takes-50-per-cent-of-Russia%E2%80%99s-GDP-19242.html

Corruption takes 50 per cent of Russia’s GDP

We live in a country whose citizens have been quoted as having the same viewpoint.

[Boon Mee]

This poster is less than surprised.

Business as usual , boys.

[BKResort]

The only honest and not corrupted politician in the world, it is close to dead now. FIDEL CASTRO.

Ohhhhh...I forgot....He is called a DICTATOR!

[craigt3365]

Interesting analysis on corruption in Russia:

http://www.vox.com/2016/4/4/11360212/panama-papers-russia-putin

[Chicog]

Funniest one so far: The new FIFA President who is tasked with eradicating corruption.....

New Fifa president Gianni Infantino signed off on a contract with two businessmen who have since been accused of bribery, leaked documents reveal.

Hugo and Mariano Jinkis bought TV rights for Uefa Champions League football and immediately sold them on for almost three times the price.

The 2006 contract was signed off by Infantino when he was a Uefa director.

Edited April 6, 2016 by Chicog

[JHolmesJr]

I cane believe Putins worth only 2 billion…that sounds like small change for him.

[arjunadawn]

The abhorrent behavior of Putin & Company pale in comparison to what is most palpable in this leak- who is not involved. If anyone thinks it is all just a bumbling, inadvertent coincidence of missteps that leaked these documents they are the audience intended! It is to these readers that the desired goal- malign specific parties- will apply. Of all the names and parties involved is anyone surprised it is Putin specifically who is indicted in world media non-stop since this leak? Of course this is intentional.

If ever there was a case of cui bono it is here? Had Americans been included on this list, even topically, their absence would not scream for explanation. Its pretty clear the list is either sterilized or designed. Of course I have not read through 11 million pages but I think its a pretty sure bet most of the data is correct. This is not my point. What is not included strongly suggests motivation and capability.

Even more horrifically then the manner despots and criminals hide their money is Obama's call in response for global tax reform. This has got to be the most discordant statement the leader of a free country could make. After all, there is only one mechanism by which any global standard of tax enforcement could exist, and offering this remedy in response to the Panama Papers, as Obama has done, is pretty darn close to treasonous.

[craigt3365]

The abhorrent behavior of Putin & Company pale in comparison to what is most palpable in this leak- who is not involved. If anyone thinks it is all just a bumbling, inadvertent coincidence of missteps that leaked these documents they are the audience intended! It is to these readers that the desired goal- malign specific parties- will apply. Of all the names and parties involved is anyone surprised it is Putin specifically who is indicted in world media non-stop since this leak? Of course this is intentional.

If ever there was a case of cui bono it is here? Had Americans been included on this list, even topically, their absence would not scream for explanation. Its pretty clear the list is either sterilized or designed. Of course I have not read through 11 million pages but I think its a pretty sure bet most of the data is correct. This is not my point. What is not included strongly suggests motivation and capability.

Even more horrifically then the manner despots and criminals hide their money is Obama's call in response for global tax reform. This has got to be the most discordant statement the leader of a free country could make. After all, there is only one mechanism by which any global standard of tax enforcement could exist, and offering this remedy in response to the Panama Papers, as Obama has done, is pretty darn close to treasonous.

You do know Americans were on the list. And why more were not, right? We don't need conspiracy theories here.

[craigt3365]

Who would have thought they would publish this? LOL

http://mashable.com/2016/04/07/putin-says-panama-papers-us-campaign/#ZOftmR3frZqa

Putin calls Panama Papers a plot by the U.S. to weaken Russia

Gotta love this:

Speaking for the first time since the revelations, which came with the leak of millions of confidential documents from the Panamanian law firm Mossack Fonseca, Putin casually dismissed them, denying "any element of corruption."

[helpisgood]

Who would have thought they would publish this? LOL

http://mashable.com/2016/04/07/putin-says-panama-papers-us-campaign/#ZOftmR3frZqa

Putin calls Panama Papers a plot by the U.S. to weaken Russia

Gotta love this:

Speaking for the first time since the revelations, which came with the leak of millions of confidential documents from the Panamanian law firm Mossack Fonseca, Putin casually dismissed them, denying "any element of corruption."

If the Panama Papers eventually reveal that important members of the US govt. were also involved, then how does that affect Putin's explanation?

Thanks for that Mashable link!

At the bottom of that article there's a helpful two-minute video that succinctly explains the Panama Papers story.

Edited April 8, 2016 by helpisgood

[craigt3365]

Who would have thought they would publish this? LOL

http://mashable.com/2016/04/07/putin-says-panama-papers-us-campaign/#ZOftmR3frZqa

Putin calls Panama Papers a plot by the U.S. to weaken Russia

Gotta love this:

Speaking for the first time since the revelations, which came with the leak of millions of confidential documents from the Panamanian law firm Mossack Fonseca, Putin casually dismissed them, denying "any element of corruption."

If the Panama Papers eventually reveal that important members of the US govt. were also involved, then how does that affect Putin's explanation?

Thanks for that Mashable link!

At the bottom of that article there's a helpful two-minute video that succinctly explains the Panama Papers story.

If US government officials were involved, illegally, then they should be prosecuted. The big difference between the Western world and Russia is freedom of press and a generally reliable legal system. Can't shut down the press in the Western world. It will get out eventually.

[daveAustin]

I cane believe Putins worth only 2 billion…that sounds like small change for him.

It is. This is just one angle. He's apparently worth around 200 billion.