13. ,




1

90000 ! !

:
The Truth about the Capitals and "The Administrative Talent"
 of Prokhorov M.D./ Mikhail Dmitrievich/
 
This material was made with the help of documentary facts, which are contained in the book of
A. Korostelev "PRIVAT – Capitalism of Russia" or "The Case "Norilsk Nickel"
(publishing house "Algorithm", 2008 year).
Edited variant of the book is contained on the real site.
The book contains the sources of the given information,
 quoted the passages from the appropriate documents.
Abridged variant - is the book "Who Made Mikhail Prokhorov"
(A. Korostelev, publishing house "Algorithm", November 2011 year)
 
 
1. PRIMARY ACCUMULATION OF CAPITAL by Prokhorov M.D. at the Expense of Privatization of RJSC Norilsk Nickel's Part of Profit.
 
The source of the forming the financial and industrial capitals of Prokhorov M.D. were completely voluntaristic (did not based on the RF laws) expressed the will of the RF President Yeltsin B.N. and the actions of the chairman of the RF State Committee Property Chubais A.B. - the chairman of the commission by privatization of the State concern "Norilsk Nickel" (!).
 
STILL TO THE FAMOUS COLLATERAL AUCTION of high-ranking government officials' practical businesslike documents were put all the financial production lines under the control of two representative banks, which were formed as the result of the export of the bigger part of the finished production of RJSC "Norilsk Nickel" (incorporated State concern "Norilsk Nickel").
On the government level, under the valid acts (Presidential unenforceable Decrees) WERE MADE ALL CONDITIONS FOR THE PRIVATIZATION OF THE PROFITS’ PART of subsidiary enterprises of RJSC "Norilsk Nickel" ("drain" some part of the assets to the close circle of persons) (!).
 
Actually it was realized directly by Prokhorov M.D. and Potanin V.O., who were appointed by the State on the first leading posts in the two financial companies - JSCB "UNEXIM-Bank" (United export and imported bank) and JSCB "International Financial Company", which were formed not without the participation of some persons from the staff of the former diplomatic body and MID of the Union of SSR.
 These two financial organizations were some of the few representatives to earn on service export and imported deals by the authority in 1992 year; Prokhorov M.D. exercising control of the large financial production lines was called to direct the financial result from the service of these deals accordingly to the high authorities’ instructions.
Only after the completion of accounts with "the Family" (the entourage of Yeltsin B.N.), both along the line of the financial participation in the electoral campaign of Boris Nikolayevich in 1996 year, and along the line of the completion of "draining" of money resources which were spent on the private capitals' formation of the entourage of the RF President Yeltsin B.N., the government actually gratis (for “double-empty") transferred the industrial assets to the property of Prokhorov M.D. and Potanin V.O., which were the foundation first of the OJSC "Norilsk Nickel", and then was reorganized as OJSC "Polyus Gold".
Isn’t it a CORRUPTION (the highest level and the most covetous)!?
 
The capitalist-billionaire Prokhorov M.D., who is the greatest gold-miner now, was become such person not only thanks to the active support of the State, the Russian Government in time of the presidency Yeltsin B.N. blinded him, in the full sense of the word, as the economic stronghold of the Yeltsin's regime, transferred the part of the best country's industry and raw materials assets to his property.
Decision 692 of the administration's Head in Norilsk was registered RJSC "Norilsk Nickel" of the 27th April, 1994 year.
 
The will of the RF President Yeltsin B.N., which was found expression in the Decree 2023 of the 28th October, 1994 year  "About output of measures of the government's support in financial groups' making and activities which are based on the financial and industrial group "Interros", was decided:
"The initiative of the enterprises and organizations of the list should be approved according to the opposition of the financial and raw material group "Interros" created by them".
23 juridical persons were taken into FIG "Interros" by the President's Decree, including RJSC "Norilsk Nickel", JSCB "International Financial Campaign" and JSCB "UNEXIM-Bank".
Controlling interest of RJSC “Norilsk Nickel” was factually transferred to the management of the financial operations of FIG "Interros" by the State Property Committee of the RF (!).
 
With the creation of FIG "Interros", LONG BEFORE THE COLLATERAL AUCTION of the controlling interest of RJSC “Norilsk Nickel”, was started THE PROCESS OF PRIVATIZATION OF THE PART OF CONSOLIDATED PROFIT OF RJSC “Norilsk Nickel” (it’s subsidiaries), which was organized by means of the voluntary-compulsory passage of all export's financial flows of the subsidiaries of incorporated State concern “Norilsk Nickel” through the settlement accounts opened at JSCB "UNEXIM-Bank" (!!).
 
There was a PROCESS OF THE INITIAL ACCUMULATION OF THE CAPITAL of Prokhorov M.D. from the autumn of 1994 year, precisely by the privatization of part of profit of RJSC "Norilsk Nickel" (by means of using bank's credit and financial system, connected with objective unjustified increase of credit interest rates, and also - delays of settlement at converting currency during the time of hyperinflation) (!).
Financial-industrial group (FIG) "Interros" was registered under the 34818 in 21th of November, 1994 year by the registration chamber in Moscow.
All the administrative agencies of this financial and raw material group, which was made on the Decree's text of the President like for the satisfaction of the Government's needs, were completely under the control of Prokhorov M.D. and Potanin V.O from the first days of the existence of FIG “Interros”.
 
 
2. THE NATURE OF THE ORIGIN
OF MULTI-BILLION CAPITAL of Prokhorov M.D.
 
Laying down the rules of industry privatization in Russia in 90-s years of XX century on the illegal basis (without participation of the RF legislative authority in this), the highest State executive power tried to reduce amounts of the authorized capitals to a minimum with the purpose of the State concerns' privatizing, that made easier transferring of theirs controlling interest at first to the management under the power of attorney, the bail, and then to the property of the henchmen of the RF President Yeltsin B.N., chosen them (by the authoritative will of “Tsar Boris”, as liked Boris Yeltsin that special close persons named him in seriocomic form) for the role of the future oligarchs, economic stronghold of Yetsin’s political regime of liberal plutocracy, high-ranking corruption and uncontrollable embezzlement of public funds, by whom was Prokhorov M.D.(!).
 
There were no ANY VALUATIONS OF PRODUCTION AND OTHERS BASIC FUNDS of industry enterprises of RJSC “Norilsk Nickel” and DRAWING UP THE FULL INVENTORY OF THE PROPERTY (!).
 
The authorized capital of RJSC "Norilsk Nickel" was 31 499 979 000 RUB., it was counted according to the balance sheet of the 1st July, 1992 year, that was equivalent to $251 476 760,3 in accordance with the rate of exchange (125,26 RUB./ $).
On the 27th April of 1994year, the registration date of RJSC "Norilsk Nickel", the authorized capital of the company was equivalent only to $17 969 183,7 (1753 RUB./ $).
The city-forming mining-metallurgical industry mergers: Norilsk Combine (Norilsk, Krasnoyarsk Region), "Pechenganickel" Combine (Zapolyarny, Murmansk Region), "Severonickel" Combine (Monchegorsk, Murrmansk Region), Krasnoyarsk's factory of Non-ferrous and precious metals' industry (Krasnoyarsk), Olenegorsk's Mechanical Factory (Olenegorsk, Murmansk Region), "Gipronickel" Institute (St. Petersburg) had been the members of the State concern "Norilsk Nickel" (since 1989).
Such wretched amount of the authorized capital of RJSC “Norilsk Nickel”, which, however, laid the fabulous minimum foundations for the valuation of stocks of RJSC “Norilsk Nickel” at the start, and simultaneously guaranteed stunning increase of Companies' capitalization, future created on the base of the assets of mentioned industries - OJSC "MMC "Norilsk Nickel" and OJSC "MMC Kola", was explained by the following way:
 1) the main factor of the incredible low prices of the authorized capital of RJSC “Norilsk Nickel” was LACK OF THE VALUATION OF NATURAL RAW MATERIALS (and also technogenic) as three the richest explored and entirely worked the sulphide and nickel ores deposit of Norilsk industrial area ("Norilsk-1", "Octyabrskoe", "Talnakhskoe").
Also there was no valuation of mining ores situated on the Kola Peninsula in Murmansk Region.
The value of non-ferrous and precious metals keeping in the entrails of the earth on principle left out of account as if they were not at all (!).
Although, according to the Constitution of the RF p. 1 of the clause 9 "Russian Federation makes use and protects natural resources as the basis of life and activity of the people living in the proper territory".
Clause 2 of the RF law "About Mineral Resources" laid down that possession, usage and disposal of State resources' fund should be fulfilled not only in interests of the people living in the proper territory, but also of the all people in the RF;
 2) in accordance with the clause 6 of the Decision 595 of the RF Government of 14th August, 1992 year "About the Reappraisal of the Main Funds' Values.." (Gaidar E.T) "determination of the authorized capital's size... is carrying out WITHOUT CONSIDERATION OF REAPPRAISAL which is making in conformity with the present decision".
Although, according to the information of the RF State Committee Statistics Service, the inflation's level was 2508,8% in 1992 year, 839,9% in 1993 year, 215,1% in 1994 year.
Since the 1st July of 1992 year (the established by the President's Decrees date, on which came the account of the incorporated enterprises'' authorized capital) till the 27th April of 1994 year (registration of RJSC "Norilsk Nickel") it's BASIC FUNDS WERE DEPRECIATED in 324 times (!).
Later, after the complete privatization of RJSC "Norilsk Nickel", on base of industry and some other assets of super profitable mining and metallurgical industry mergers of the former State concern, was made OJSC "MMC "Norilsk Nickel" and OJSC "MMC Kola", the assets' price included the value of the richest ore deposits, first of all the real value of all basic industry funds (core assets), well developed social infrastructures, companies' provision of high-professional labour supplies (!!).
ONLY IT, but not the “painstaking work” of Prokhorov M.D. and his management team, secured fast increase of the capitalization (the complex price of the business) of the same OJSC “MMC “Norilsk Nickel”, the increase of the market price of company's assets (compared with the start price of the assets of RJSC "Norilsk Nickel") that allowed to bring out it in "the blue chips" of Russian stock market (!).
THIS IS THE NATURE OF THE ORIGIN THE MULTI-BILLION DOLLAR CAPITAL OF Prokhorov M.D.
 
3. THE COLLATERAL AUCTION
of the Controlling Interest of RJSC “Norilsk Nickel”,
which was Conducted in Interests of Prokhorov M.D.
 
JSCB "UNEXIM-Bank" could finish its consolidationof the administrative rights on RJSC "Norilsk Nickel" by the results of the having NO ALTERNATIVE COLLATERAL AUCTION of controlling interest of RJSC “Norilsk Nickel” in the 17th November, 1995 year whichformally was in the State Property.
Actually still in October of 1994 year Yeltsin’s executive power through the FIG “Interros” without any auctions transferred RJSC “Norilsk Nickel” for the overall management (with the right to dispose of the profits) to the same JSCB “UNEXIM –Bank”. So, there was played the “FORMALIZED THEATRICALS” (FARCE!) in front of the public on the 17th November of 1995 year, which was designed for non-critical, trusting to the actions of the “liberal-democratic” authorities with Boris Yeltsin at the head, a simple narrow-minded thinking, which unable to realize in those days, that the SUPREME AUTHORITY OF THE COUNTRY COULD ROB THIS COUNTRY IN THE PRIVATE INTEREST, ACTUALLY, ROBBING ITS PEOPLE, and disguised all this by the high-flown profuse talks about the necessity of democracy and market development (!).
 
There was no the real rivalry between two financial organizations FIG OGSC "Interros" - JSCB "International Financial Company" and JSCB "UNEXIM-Bank". JSCB "International Financial Company" was as a "technical" competitor, and JSCB "UNEXIM-Bank" won the collateral auction of the assets of RJSC “Norilsk Nickel” actually without alternative.
As a result, there was included the Contract of pledge 01-2/2688 on the 21st November, 1995 year.
 
However there are all reasons to believe that this credit on the security of controlling interest of RJSC “Norilsk Nickel” in $170 100 000, was only as the formal documents for being the firmest foundation for transferring controlling interest of mining-metallurgical giant to JSCB “UNEXIM-Bank” in collateral (nominal) property (!).
Also, together with controlling interest of RJSC “Norilsk Nickel”, JSCB "UNEXIM-Bank" was vested a right to vote by State block of shares in a work of the "pledged" company's administration.
Relying on the authoritative structures, JSCB "UNEXIM-Bank" GOT ADDITIONAL FINANCIAL MEANS (in addition to the known earlier amount) in Russian Bank (C.B.) on a commercial basis at the refinancing rate, and GAVE THESE MEANS ON A CREDIT TO THE GOVERNMENT but in the other authority – the RF Ministry of Finance (!!).
There are no doubts that Russian Government gained nothing!
 
And there was no reason for the State to have this credit, if (according to the report of Vsevolod Generalov, the Chairman of RJSC “Norilsk Nickel”) in this 1995 year the pure consolidated profit of the company came to 3 393 billion rubles, or $730 344 900, in accordance with the annual exchange rate(4645,75 RUB./ $).
Why the State gave such a valuable (super profitable) industrial asset for nothing, precisely for "the copeck" credit (and also fictitious), if the interests of the high-officials and future oligarch - Prokhorov M.D. and Potanin V.O. had not to be taken into account (!!).
 
Ten days later after the collateral auction, on the 28th November of 1995 year, on the meeting of Moscow's bankers and Norilsk's production workers, representatives of JSCB "UNEXIM-Bank" proposed to transfer all finance of RJSC "Norilsk Nickel" and its sub-companies to theirs management. The leaders of RJSC "Norilsk Nickel" didn't agree with it and the conflict became heated, moreover, the administrative resource was of the decisive importance.
All was ended with the Order of the Russian Government 592 of the 13th April, 1996 year, by which was released the "Red CEO” Filatov A.V. of his posts of board chairman and general director of RJSC “Norilsk Nickel”.
By the same Order, omitting the shareholding meeting of RJSC "Norilsk Nickel", was formed a new Board of Company's Directors in which was the Chairman of JSCB "UNEXIM-Bank" Prokhorov M.D. together with Potanin V.O., Khloponin A.G., Zelenin D.V.
 
The mentioned conflict induced Russian members of parliament to adopt the regulation 102-II SD of the 21st February, 1996 year "Of social and economical problems in connection with the course of RJSC Norilsk Nickel's privatization, and setting up a State Duma Committee of the Federal Assembly of Russian Federation on checking the course of RJSC Norilsk Nickel's privatization and on considering the social and economical problems caused by this".
By the results of the work of created Committee the State Duma LA of the RF adopted the regulation 441-II SD of the 7th June, 1996 year "About social and economical problems in connection with the course of RJSC Norilsk Nickel's privatization", which established in p. 5:
"THE COLLATERAL AUCTION of the management of the State property WAS PREPARED VERY HASTY by the State Committee of Russian Federation. ... Transferring assets of RJSC "Norilsk Nickel", which were federal property, to the United Export and Imported Bank (further UNEXIM-Bank)...didn't lead to a rising of federal property's effective management".
 
Further the following CONCLUSION about the necessity of obligatory conservation "controlling interest of RJSC “Norilsk Nickel” in federal property, veto on its estrangement as a whole and in parts" (!).
 
 
4. THE ABOLITION OF EXPORT DUTIES
at once after the Collateral Auction
of the Controlling Interest of RJSC “Norilsk Nickel”.
 
The most important source of forming the material well-being of "the Family" (the entourage of the RF President Yeltsin B.N.), and of replenishment of the electoral money-box of Yeltsin B.N. (the candidate for the secondary accession to the presidency of the RF in 1996 year) - were the financial means "drained" from the accounts of the incorporated and being on the stage of privatizing the greatest and the most profitable industry mergers (State concerns) and theirs sub-companies specializing on extraction, processing and selling natural raw wealth, which were illegal and non-payable given to the Presidential chosen persons (to the future oligarchs) at first for the overall management, but then – for the property, upon the command of Yeltsin B.N. 
The RF President Yeltsin B.N didn't leave them in his mercy, immediately incorporating the government interests and the desires of private persons, this laid the strongest foundation of the future “indestructible building” of the HIGH-RANKING Russian CORRUPTION (!!).
 
At once after the last collateral auction of controlling interest of RJSC “Norilsk Nickel” (the 17th November, 1995 year), was issued in a hurry the Decree of the Russian President 1204 of the 30th November, 1995 year "About taking urgent measures to support exporters" containing the following information:
"With the purpose of supporting domestic industry and export's development, enacts to:
The Government of Russian Federation TO ABOLISH export customs duties of the most kinds production of oil processing and some production of timber industry from the 1st December of 1995 year, and from the 1st January of 1996 year, should be reduced the rates of export customs duties of all commodity output, except petroleum, gas and some others raw materials.
The Government of Russian Federation takes measures on the compensation of missing federal budget revenues".
 
Who produced such version of Decree's text for the Russian President to sign, will keep in mystery for sure. There was not the time at all, which was necessary for amending resources' enumeration of replenishment profitable part of the federal budget next financial year, as a rule, factually had already made up in pages by the 30th November of the current year.
That's why the RF Government's Decree 479 "About the abolishment of export customs duties, change of the excises' rates of oil and the additional measures in ensuring of coming profits to the federal budget", issued in development the Decree 1204 of the Russian President, came out only on the 1st April of 1996 year, directing:
"1. TO ABOLISH ALL EXPORT CUSTOM DUTIES, except oil and gas condensate from the 1st April of 1996.
2. ...to make oil export, including gas condensate, without levying export customs duties from the 1st July of 1996...
8. Introduce a charge for electrical supply to productive industry's enterprises on an average amount in 12 rubles for 1 kWh, differentiated by regions, from the 1st April of 1996.
 
On the whole, for the presidential mercy of Yeltsin B.N. to the exporters which were sworn allegiance to him, to managing financiers like Prokhorov M.D. (in reference to RGSC "Norilsk Nickel"), were setting by the Kremlin Power to the helm of companies which were being on the privatizing stage, all commodity producers inside of the country were held responsible, especially those whose production was power-intensive to a sufficient extent (!).
The same responsibility threw on to the all end users of commodity, work and services, i.e. to the all Russian citizens.
 
For the information, the export duty of only one OJSC "Norilsk Combine" - the main sub-company of RGSC "Norilsk Nickel", paid during the 1995 year, was 565 247 000 000 RUB., that was equivalent to $ 121 670 000 in accordance with the average annual exchange rates (4645,75RUB./$) (!!).
 
With such “thought-out” State financial and economic policy it is beyond question that in itself the COLLATERAL AUCTION of controlling interest of RJSC “Norilsk Nickel” WAS JUST TRUNSFER MECHANISM of the management to Prokhorov M.D. and Potanin V.O. by the Government, because the State wasn’t in need of credit resources ($170 100 000).
 
Only on the 20th December of 1998 year WAS PROPOSED TO COME BACK TO EXPORT CUSTOMS DUTIES in the plan of measures on social and economical stabilization in the country, which was passed by the decision of RF Government 1529 (!).
There was submitted for consideration the question about taxation in 5% of export entrepot of realization nickel, copper, cobalt and its combinations, beyond the Russian territory.
 However, if the most authoritative Primakov E.M. wasn’t been the Chairman of the RF Government, may be, this question wasn’t submitted at all (!).
 
 
5. Unexpected Refusal from the Right Mechanism of
 MINING CONCESSIONS.
 
During the period of the presidency of Yeltsin B.N. for obvious reasons, connected with building of oligarchic capitalism in the country, the State power NEVER PUT and SOLVED THE QUESTION of choosing the variant of RECEIVING THE WORTHY FINANCIAL COMPENSATION by the State FROM THE INDIVIDUAL COMPANIES, formed in the course of privatization of the State mining industrial mergers, FOR THE GIVING TO THEM THE RIGHT OF FUTHER EXPLOITATION OF THE RICHEST, FULLY EXPLORED and INDUSTRIAL EQUIPPED (that included technical, technological and staffing support) MINERALS DEPOSITS (!!).
 
The RF Legislation, which was controlling the legal relationship on the sphere of subsoil management, didn't afford such opportunity because of the very weak taxation mechanism connected with it, secured levy payment in especially symbolic character . Then stressed that, as befits, it was equally applied to the individual companies, and to the companies with participation of the official capital. It did not regulated relations, connected with initiation of the individual compensational economic—legal institute off-budget payments for the given the right to the individual companies, formed on the base of the State enterprises’ assets (State concerns), to work DEPOSITS, EACH OF THEM HAD THE OWN PRICE according to composition and concentration contained in the mineral resources (!)
 
However such attempt was undertaken when on the 3rd April of 1996 year the State Duma LA of the RF considered the draft of federal law "About concessional treaties concluding with Russian and foreign investors", and carried it by the decision 210-II SD in the first reading.
After, it was sending through the all channels of Russian State for either co-ordination till the 2nd May of 1996 year, or inserted a correction or appendix in it with properly given arguments in established time. Co-ordinations and corrections to this bill should be sent to the State Duma Committee LA of the RF for Economic Policy.
To sum up, this “long-suffering” bill was not just slowed down, carrying it off on the numerous floors and cabinets of high-ranking chairmen, it was intentionally and prudently forgotten up to a certain time, neglected this product of the lawmaking in a distant safe.
 
See for yourself, the draft of federal law "About concessional treaties concluding with Russian and foreign investors" was submitted for approval on the 3rd May of 1996 year, and on the 22nd December of 2000 year this bill was returned for the rework to the State Duma of the RF which was responsible for it, that is to say after 4,5 years (!).
The indicated bill, although was sent out for a many instances, but then of "one's own will", as if at a command, was held up in somebody's official safes, where it was staying during the most important period of privatizing by-Chubais.
It was taken out and published only when the matter of legitimating of free charging deposit's exploitation, which was working out before the  industry privatization ( the same RJSC "Norilsk Nickel") and after coming the RF President Putin V.V. to power, had already lost their urgent character.     
Outstandingly, but from the 14th August of 1996 year till the 17th March of 1997 year, precisely when this bill was read the first time and "disappeared from radar screen", the post of the Russian Government's Vice-Chairman was hold Potanin V.V., associate and companion of Prokhorov M.D. (!!).
 
Later, on the 21st July of 2005 year, was passed the FL "About the concessional agreements" 115-FL, legal norms of which didn't regulate mining legal relationship, didn't legal institute "mining concessions", well known and approved at the beginning of XX centuries in Russia, but, first of all, regulated municipal economy.
                                                         
Absolutely not objecting to the most harangue statements for protection of free market and particular private business, nonetheless, express our insistent conviction that RF Government was duty to go on the road of step-by-step reimbursement of spending government budget funds in the past, using the same market levers (!!).  
This position is based on the confidence in the appreciation of the gist of GOVERNMENT BUDGET FUNDS' ASSIGNMENTS - SATISFACTION OF THE JOINT PUBLIC INTERESTS of all Russian civil society.
 IT FOLLOWS that materializing budget financing of the last Russian generation should be working for the benefit of the present and future generation of Russian citizens, but not satisfy the needs of the narrow circle of going too far persons, like Prokhorov M.D., also serving theirs global extravagancy (!).  
 
 
6. SELLING (But in Reality THE NON-REPAYABLE TRANSFER)
of the Controlling Interest of RJSC "Norilsk Nickel"
to Prokhorov M.D. and Potanin V.O.
 
After some time the Government, of course, intentionally didn't return the credit in $170 100 000 and the interest on it to JSCB "UNEXIM-Bank" which was unreal in itself, but “technical”, or “schematic” – the key unit of the scheme (FRAUD), where the real deal – gift (i.e. non-repayable), sheltered behind the seeming commutative credit deal and the following payment under it through the enforcement of pledge, during the time of this deal the financial resource for its convincing completion “pumped” by the pledgee (JSCB “UNEXIM –Bank”) from the object of the pledge, withdrawing from the incomes of the super profitable industry merger (RJSC “Norilsk Nickel”) (!).
Really, mentioned the “copeck” credit (if compare with the colossal amount of incomes of the enterprises RJSC “Norilsk Nickel” before and after privatization) was for secure the formal-legal explanation of the presentation the real deal on the non-payable transfer of the super profitable industrial assets from the Government property to the private property of two future oligarchs as commutative deal enforcement of pledge under repayment the bank credit in time and interest on it, in the opinion of the unlimited circle of the third persons (the most general public) (!)
 
In summer of 1997 year the three years period of consolidation the controlling interest of RJSC “Norilsk Nickel” in the State property was up, and the mortgagee (JSCB "UNEXIM-Bank") put it up to the commercial tender at once on the 5th August of 1997 year, under the conditions to the winner:
1) pay the top price which was suggested at these pseudo-tenders (it was impossible to give the other characterization to this farce, which was under the complete control of JSCB "UNEXIM-Bank"), from the starting price of $139 504 396;
2) for the "sweeping under the carpet" this patently absurd, the winner was loaded with not only the main but also with the additional obligations, lasted in time: 
- during three years, spend $300 000 000 investments for the development of Pelyatkinsk condensed gas deposit;
- invested 200 BLN. RUB. in RJSC “Norilsk Nickel” for the paying back the debt to the Pension Fund and another 200 BLN. RUB. send in Norilsk for the financing the social and cultural facilities and amenities.
 
For the clearly understanding of this "lavish" investing in the financing the social and cultural facilities and duties, adding that, according to the established rate of currency exchange (5782 RUB./ $) from 28th June of 1997year RF CB, 200 BLN. RUB. was equal to $34 590 100.
For the comparison, it came to the only 4,34% of consolidated net income ($730 344 900), received by RJSC "NN" in 1995 year which was not the most economic successful (!).
 
Note that the ADDITIONAL TERMS might look more than strange to the persons, who knew a little this situation, which was formed in Norilsk's industrial area, specifically:
a) investing financial means in industry development of Pelyatkinsk condensed gas deposit - it was equivalent to investing money in the energy supply program of the same OJSC "Norilsk Combine" mining industrial production, i.e. in the its own private business, receiving these means from the great net income of the same business
b) existence of the certain trade liabilities in sub-companies of RJSC "Norilsk Nickel", including the debt to the Pension Fund, that was taken into account under the forming the capital of RJSC "Norilsk Nickel", it was the result of assets' attrition. However, in September of 1997 the debt to the Pension Fund was restructured for 5 years;
c) obligation to finance the social and cultural facilities and amenities in Norilsk sounded ridiculous in connection with the process of transferring these objects to the municipal property from the city-forming enterprise - OJSC "Norilsk Nikel" had not finished yet to 05.08.1997.
The financing the social and cultural facilities and duties carried out by balance profit of the major company as usual, about 50% of which were fallen under the effect of privileges of organizations' profit tax (no fee is charged).
 
IT TURNED OUT, that all so-called additional terms of the commercial tender were profitable exclusively to the buyer of the controlling interest of RJSC “Norilsk Nickel”, but not to the Russian State (!).
 
Put-up winner of the commercial tender, which offered $250 000 000 as the principal payment, was the stooge company LLC "Swift", from FIG OJSC "Interros" and JSCB "UNEXIM-Bank", but there was the minimum authorized capital in its assets in accordance with the Russian Legislation.
This financial obligation of JSCB "UNEXIM-Bank" looked infinitesimal even in comparison with consolidated net income of RJSC "Norilsk Nickel" was $730 344 900 for 1995 year (which was not the best year according to economic results).
 
If we take into consideration that JSCB "UNEXIM-Bank" DISCHARGED ITS OBLIGATION even through the stooge company LLC "Swift" but WITH THE FINANCIAL MEANS OF the same RJSC "Norilsk Nickel", it's became clear that the Government got “a big fat zero” from the privatizing of the State concern "Norilsk Nickel" carried out by the method and under the personal direction of Anatoly Chubais, by Presidential Order which was at one with Mikhail Prokhorov and Vladimir Potanin, in their private interests, and also in the same interests of the other persons from the entourage the first RF President Yeltsin B.N. (“the Family) (!!).
 
We'll give the following comparison as the additional evidence:
- there was conducted the open cash auction of saling ordinary stock of RJSC "Norilsk Nickel" on the 19th of November of 1994 year, the average price per one share was 101 491 RUB., or (3085 RUB./ $) $32,9.
- on the 5th of August of 1997 year, was sold not any share separately, but the RJSC Norilsk Nickel's controlling block of shares at the price of $250 000 000 per 47 879 968 shares, the average price per one share was 30 281 RUB., or (5801 RUB./ $) $5,22.
 
THE FOLLOWING CONCLUSION: if the controlling interest of RJSC “Norilsk Nickel” was sold ONLY at the price $32,9 per one share, the block's price was $1 575 250 950 ( and it could be the MINIMUM PRICE!).
The further comments are superfluous!..
 
 
7. THE FORMING of OJSC "MMC "Norilsk Nickel"
ON BASE of Unaccounted THE RICHEST ORE DEPOSITS
during the Privatizing of RJSC “Norilsk Nickel”.
 
TO PRIVATIZE RJSC "Norilsk Nickel" AT THE FINANCING MEANS OF THE PRIVATIZING COMPANY - it was not all (!).
 
According to the idea of Mikhail Prokhorov and Vladimir Potanin it was necessary also to form WITHOUT PRIVATIZATION PAST (“pure”) mining and metallurgical company, exceptionally on base of the assets of the fundamental (profile) producing the nonferrous and precious metals of privatizing State concern (RJSC “Norilsk Nickel”) namely the rights for exploitation the mining and metallurgical deposits (non-material asset), mines, concentrating mills, metallurgical works (material asset).
The necessity to make “pure” (without privatization past) company was conditioned by the effort of Mikhail Prokhorov and Vladimir Potanin to achieve for themselves and also for their successors maximal stability in business, once and forever RULLING OUT EVEN THE THEORETICAL POSSIBILITY OF PUTTING THE PROBLEM ABOUT NATIONALIZATION the “grabbed privatizing” of State concern (RJSC “Norilsk Nickel”) by them in the future BY MEANS OF ABOLITION THE RESULTS of its by-law and illegal non-repayable and private-roguish PRIVATIZATION (!!).
 
Being sure that the Government won't repay a debt to JSCB "UNEXIM-Bank", and RJSC Norilsk Nickel's controlling block of shares will pass into their private ownership through the stooge company, i.e. to the 5th August of 1997 year, Mikhail Prokhorov and Vladimir Potanin initiated the beginning of the process of “draining” the most attractive assets.
 
THE MOST ATTRACTIVE ASSETS of the privatizing RJSC "Norilsk Nickel" were undoubtedly the RIGHTS (LICENCE) FOR EXPLOITATION THE RICHEST (according the world measures) NATURAL ORE DEPOSITS OF MINERAL PRODUCTS – which made the raw base of the future private business (OJSC “MMC “Norilsk Nickel”) of Mikhail Prokhorov and Vladimir Potanin (!).
UNVALUED and INTENTIONALLY “FORGOTTEN-UP” THE RICHEST DEPOSITS of sulfide and copper-nickelores in their structural composition were precious metals (platinum and gold) with nonferrous metals (cooper, nickel, cobalt and so on) in the course of RJSC "Norilsk Nickel" privatizing (!!).
The organizers of the quiet reorganization process of OJSC "Norilsk Combine" (the leading sub-company of RJSC "Norilsk Nickel").
 
Thus, on the 27th June of 1997 year in the minutes 4 of extraordinary general meeting of shareholders of OJSC "Norilsk Combine", consisted of only two shareholders - RJSC "Norilsk Nickel" (99,82%) and CJSC "Geosyre" (0,18%), were decided:
"1. Put over the reorganization of OJSC "Norilsk's Combine" as the formation of OJSC "Norilsk Mining Company ".
 
A month before the formal selling the controlling interest of RJSC “Norilsk Nickel” to JSCB "UNEXIM-Bank" (the 5th August of 1997 year), on the 4th July of 1997 year OJSC "Norilsk Combine" (so and RJSC “Norilsk Nickel”) lost its license of ore deposits exploitation transferred to OJSC “Norilsk Mining Company” (in the nearest future – OJSC “MMC “Norilsk Nickel”) by the decision 103 " About the State registration of OJSC "Norilsk Mining Company" of the First Deputy Governor in Taimyr Autonomous District (!).
 
It was "TECHNICAL WITHDRAWAL” OF THE MAJOR ASSET, which if there was not valuation of ore deposits during the privatization incorporating of the State concern "Norilsk Nickel" didn't come off, later was concluded a concession agreement, it was containing the real price of concessions.
 
The clause of the item. 1.1. Charter of OJSC "Norilsk Mining Company" reflected the instruction list of the formed company:
"1. The basic means amount 17 304 318 000 RUB. ...
2. Intangible assets amount 346 533 000 RUB., which were finding in the outlay of licenses' replacement for the use of subsurface resources. Rights and duties, connecting with mine production in conformity with the licenses DUD 00009 TE to mining in copper-nickel deposit Norilsk-1 of 05.10.1994, DUD 00030 TE to mining in Talnakh's copper-nickel deposit of 03.10.1995, DUD 00007 TE to mining in Oktyabrsk's copper-nickel deposit of 03.10.1995, hand over by the way of succession to OJSC "Norilsk Mining Company".
 
Amazes, but all these happened before than the Government lost its controlling interest of RJSC "Norilsk Nickel" which was belonging to it as a property, sold on the 5th August of 1997 year.
This confirmed once more, that “being in the loop” high-ranking Kremlin State officials were in the close collusion with Mikhail Prokhorov and Vladimir Potanin, conniving at the impudent order by the last State property before the Government put the end in the subject of privatization of RJSC “Norilsk Nickel”.
THE TOTAL LAWLESSNESS and HIGH-RANKING CORRUPTION – manifestation of two evils of 90-s years of XX century, becoming the reason of the non-payable and much of irreparable loss some part of its industrial economic potential by Russia - WERE BROUGHT UP BY THE ABSOLUTE IMPUNITY (!).
 
Note that in the moment of State registration the authorized capital of OJSC "Norilsk Mining Company" was equal to $17 295 (5782 RUB./ $), or to the price of an average car!..
For this small capital of OJSC "Norilsk Mining Company" was hiding the real huge financial potential, amount to billions dollars, the conversion guarantor in "hard cash" of which was the industrial complex of Norilsk Combine, highly developed even in Soviet time.
To be in such authorized capital was not difficult to Russian oligarchs.
 
In addition was totally kept the structure of the authorized capital RJSC "Norilsk Nickel", that further allowed to secure the stocks conversion of RJSC "Norilsk Nickel" to the stocks of OJSC "MMC "Norilsk Nickel" (OJSC ""Norilsk Mining Company" at the beginning) by the formula 1/1.
But the controlling interest of OJSC "MMC "Norilsk Nickel" (51%) was divided ("assigned") equally between Prokhorov M.D. and Potanin V.O.
 
Thus, Mikhail Prokhorov and Vladimir Potanin got their own, without privatization past, profit center (emphasize, super profit!), getting from the operation of the richest ore deposits by the production basic funds which were rented at the start from OJSC "Norilsk Combine", being in the structure of RJSC "Norilsk Nickel" (!).
 
 
8. "DRAIN” OF PRIVATIZED PRODUCTION ASSETS  
in OJSC "MMC "Norilsk Nickel"
 by Prokhorov M.D.
 
It follows from the early presented, that in the course of reorganization of RJSC “Norilsk Combine” (the leading sub-company of RJSC “Norilsk Nickel”) by means of assignment the whole raw assets from its structure was formed OJSC “Norilsk Mining Company” (further – OJSC “MMC “Norilsk Nickel”) to which transferred all the rights for the following exploitation of the three richest sulfide copper-nickel ore deposits (“Norilsk-1”, “Talnakhskoe” and “Oktyabrskoe”) from the reorganized incorporated society, special DID NOT ACCOUNTED IN THE PROCESS OF PRIVATIZATION of RJSC “Norilsk Nickel” (!).
But reorganized OJSC “Norilsk Combine”, by the order of the general director of RJSC “Norilsk Nickel” Khloponin A.G. (now – Vice-Premier of the RF Government), appointed by the authority JSCB “UNEXIM-Bank” (by the same well known future oligarchs) at the head of RJSC “Norilsk Nickel” in the period, when the controlling interest of this company was in pledge, nominal holding at JSCB “UNEXIM-Bank”, sold the controlling interest (51%) of OJSC “Norilsk Mining Company” for the token price (close to the nominal) to Mikhail Prokhorov and Vladimir Potanin, that ABSOLUTELY DID NOT SERVE THE INTERESTS either the Russian Federation or RJSC “Norilsk Nickel” itself (!).
It was not difficult at all to arrange it, because, at-first, there was not APPRAISAL of the deposits DURING THE PRIVATIZATION, it means that the real price of the natural resources was not registered and documented for the purpose of accounting at the determination the objective privatizing price of the controlling interest of RJSC “Norilsk Nickel”, at-second, by the same reason the authorized capital of the new company (the “hill”) at the face value was equal only to $17 295 (51% of which – less $9 000) at the moment of the State registration, but there was not and could be any market price of the interest of RJSC “Norilsk Mining Company”.
 
However, for that OJSC "Norilsk Mining Company" could assume the form of mining and metallurgical private business in full-weight, which was not encumbered with the privatizing past (as now – OJSC “MMC “Norilsk Nickel”), it was necessary to organize ransom (“drain”) of privatized OJSCB "Norilsk Combine" the basic production assets of OJSC “Norilsk Combine”, and also to carry out the hiring by means of transferring the desired number of the workers who were laboring for these (“drained”) capital goods (!).
 
There was one interesting aspect in the solution of OJSCB "Norilsk Combine" ransom, which concerned of leading these measures to the minimization of buyer's taxable income.
The basis for this were rules of the article 6 of RF Law "About the tax on profits of enterprises and organizations" 2116-1 of the 27th December, 1991year, read:
"1. While calculating the income tax the taxable profit at the actually given costs and expenditures at the expense of the profits which are remaining at the venture's disposal, is lowering for amounts:
a) which were sent for the funding of capital investments of production assignment ... This privilege is given to enterprises, which are carrying out their own base development, and also financing the capital investments of production assignment".
 
All the SCHEME OF TAX MINIMIZATION were well established and looked inside as the leaders of RJSC "Norilsk Nickel" (Prokhorov M.D. and Potanin V.O.) decided to shift earned balance profit from their left pocket (OJSC "Norilsk Mining Company") to their right pocket (OJSC "Norilsk Combine"), in reverse order - to shift the basic production funds, SIMULTANEOUSLY economize about 50% profit tax (!).
Undoubtedly, it is clearly seen from the given example how the Russian Government contributed to increase profits of the Russian oligarchs, moreover, to the detriment of dues from profit taxation of enterprises and organizations in the country budget (!!).
 
Moreover, at the last moment of the government the RF President Yeltsin B.N. was passed the Federal law 39 - FL "About the investing activity in the Russian Federation, carrying out in the form of capital investments" of the 25th February, 1999 year, settled law of the article 16 reads:
"1. Capital investments may be:
Nationalized only on condition of preliminary and equivalent compensation of damages by Government, caused to subjects of investing activity, in accordance with the Constitution of the Russian Federation, Civil Code of the Russian Federation".
 
Thus, LET’S SUM UP.
Only one legal standard of the RF law "About the tax on profits of enterprises and organizations" 2116-1 of the 27th December, 1991 year, which for sure was not by accident in it but by the efforts of lobbyists beforehand, under the effected arguments of necessity incentivization of the capital investments to the private business "buried" in its context, allowed Mikhail Prokhorov and Vladimir Potanin "for themselves beloveds" EXTREMELY FAVOURABLY, without any legal organizational difficulties "TO DRAIN" THE BASIC (profile) production ASSETS “seized and privatized” from the State (Russia) during the illegal and non-payable privatization of RJSC “Norilsk Nickel” to their own private OJSC “Norilsk Mining Company” (late renamed in OJSC “MMC “Norilsk Nickel”) (!).
 
It turned out that Russia more than simply lost (gave it to these two men for their “FRAUD”) the greatest, modern, completely technical and technological equipped, being up and running at full capacity only just in 1989 year, the high profitable, super profitable, traditionally oriented to the export of the most part of its production, mining and metallurgical industry merger, specialized in the production of non-ferrous and precious metals, but it also easily PAID for legalization of the results of all this downright disgraceful BY THE SHORT-RECEIVED TAXES, forgot about growing out deep of the social inequality, about poor and just scores millions Russians mendicants, who were in need of the social programs’ expansion, financed from the Federal budget of their Home – Russia (!!).
 
 
9. PRESIDENTIAL SUPPORT
in Forming Oligarchic Capitals,
 IN ESTABLISHING OF THE RUSSIAN OLIGARCHY.
 
Mikhail Prokhorov as the others Russian raw oligarchs of Yeltsin time, who formed theirs capitals in the process of bylaw-illegal and absolutely non-payable for them privatization of mining and oil Russian industry production, were never get left without Presidential support during the all period of forming oligarchic capitals (!).
 
So, the RF President Yeltsin B.N. before announced resignation on the 31st December of 1999 year could solve by the powerful-authoritarian method, TWO PROBLEMS with which he was faced, each of which was directly connected with establishing and the further development oligarchic capitalism of Russia, with firming the influence on the power of Russian oligarchy.
 
THE FIRST PROBLEM was in neutralization of the country's Parliament (the RF Supreme Soviet, and then – the State Duma LA of the RF) with the purpose of the full substitution of never appeared, as the result of anticorruption Presidential activity (the Decree of the RF President 1400 of the 21st September, 1993 year, and the following after it sanguinary events of tanks' cannonade of the building of the RF Supreme Soviet of People’s Deputies!), legislation of industrial privatization by subordinate presidential efficient decrees and, actually, unofficial carrying out the greatest industrial Russian property in individual interests of small presidential chosen group "PRIVAT-capitalists" and on the whole -of the "Family" ( the entourage of Boris Yeltsin) (!!).
The determination of the conditions and method of privatization housing by Russian citizens, as non-industrial things (objects) of utility, the RF President Yeltsin B.N. “graciously” left at the disposal of the State Duma LA of the RF.
 
THE SECOND PROBLEM was in organization supporting by the Head of the State, his powers of the government, of the processes of carrying the structural reorganization privately privatizing the greatest and the most profitable industrial associations, legalization them in the new view (without privatizing past), bringing all these up to the state of irreversibility, nullification any (even theoretically!) variants of some review of the results of carried industrial privatization by-Chubais in Russia in the future (after demission of the RF President Yeltsin B.N.) (!!).
 
After achieving these aims, and resignation of the RF President Yeltsin B.N., Russian OLIGARCHS HAD TO WIN only one but very important and perhaps the FINAL VICTORY for their complete peace of mind.
Summarized the all results of Russian privatization (industrial and non-industrial) and put them in the same ABSURD HEAP, where housing privatization by the citizens without compensation (non-industrial consumer property), which were given free to them by the Government for life tenure by the contract of the social hiring before the break-up of the Soviet Union, privatization of commercial and service enterprises, privatization of unprofitable and marginal productions were founded side by side with privatization of the greatest, high-profitable and super profitable Mining and Metallurgy and Oil-producing industrial mergers (the leading exporters of the RF), to convince the new Russian President to speak in public for early and totality permissiveness, both by the criminal-law and by the civil law, of all kinds of privatization “errors" and “miscalculations” (!).
The importance of this measure was also that the RF President Yeltsin B.N., special “was bungled” with carrying out the industrial privatization, achieved derivation of the oligarchy in Russia literally from nothing (“from zero to hero”) with authoritarian, by-law and illegal methods, it was appealed to support his political regime, attained the quick fairy enrichment of the persons from his entourage (“Family”: daughter – Dyachenko T.B., brother-in-law – Okylov V.M., Chief executive – Voloshin A.S. and so on), he could not announce personally the “privatization amnesty” to his acts, because it was definitely illegally, easily disprovable, socially convictable and politically unreasonably.
By all appearances, in the theory of the Government’s strategists at the time of the first Russian President, only the State Head who was popularly elected and took over after Yeltsin B.N., should finally to consolidate the newly-born Russian oligarchy in its “seized and privatized” industry capital from the Government and social-political status, it would gave a visible (outermost unsubstantiated form) legality to the action, which was necessary for pacifying the political active part of the civil society, doubtless guessing about privatization lawlessness in the top echelons of Russian Government power and legal mayhem at realization privatization of the “tasty morsels” of industry State property (!).
 
The motivation of appeal on the post of Head of State of Yeltsin B.N. to successor was built around that after the announcement of "privatizing amnesty" he said that Russian private business become more attractive from the foreign investors' view.
 
It means literally the following: either the HEAD OF THE STATE, WITHOUT GOING INTO THE REASONS OF THE GREATEST PRIVATE INDUSTRY CAPITAL ORIGIN and under the pretext of necessity immediately to come to absolute privatization permissiveness CAME OUT AS A PRINCIPLE OPPONENT OF SOME REVIEWS OF PRIVATIZATION’S RESULTS of 90-s years, XX century in Russia, or the financial means, which were earlier moved out from the country as Russian investments in foreign economy in the most part by the oligarchs and the closest henchmen, will not come back by the foreign investments to the Russian economy (!!).
From the viewpoint of the context it was the UTTER ABSURDITY, from the viewpoint of presentation's form - the gentle, unobtrusive but INSISTENT up to tedium BLACKMAIL! 
 
Sadly and at the same time ridiculous, but just the integration of the utter absurdity and the peculiar blackmail took effect (!).
As the result Russian President Putin V.V. assured Russians at the one of his televised remarks that he deemed advisable the appeal to the Federal Assembly of the RF with initiative of cutting the time-frames of limitation for all privatizing deals from 10 to 3 years.
Of course, the initiative of the Russian President Putin V.V. took effect, and it was passed the Federal Law 109- FL “About making amendments at the item 181 of the first part of the Russian Federation Civil Code” on the 21st July of 2005 year, which was came into effect from the day of its official publication.
Thanks to a number of journalists everything was presented like the DECLARATION OF THE PRESIDENTIAL AMNESTY for the all defects of the past PRIVATIZATION in Russia, i.e. the Head of the State put the conditional comma by his sure hand in the famous expression: “EXECUTION /OF THE “INVADERS PERSONS IN CHARGE OF PRIVATIZATION”/ CANNOT BE, PARDONED!”
 
THE RESULTS of the greatest the highest rank corruptive process of the illegal STEALING to the private pockets the high-profitable, super-profitable STATE INDUSTRIAL PROPERTY WAS LEGALIZED in the course of privatization by-Chubais (!).
 
MULTI BILLION HIGH-RANKING CORRUPTION and OLIGARCHY, REVELING IN THE TOTAL IMPUNITY for the illegal and non-payable “seizing and privatization” of the best State industry property in 90-s years of XX century in Russia, coalesced, from the beginning of XXI century and up to now, HAVE BEEN RUNNING THE SHOW in the impoverished country!..
 
 
10. HIGHLY PROFITABLE and SUPER PROFITABLE
STATE INDUSTRIAL MERGERS,
as State Concern “Norilsk Nickel”,
WERE NOT IN THE ECONOMIC DECLAINE in 90-s years of XX century,
as it was Asserted Many Times by Prokhorov M.D.
 
Argue in favor of that status of State concern “Norilsk Nickel” and its sub-companies in 90-s years of XX century were not in a sad state at all, as it was periodically presented by Mikhail Prokhorov with pronouncedly strongly marked complacency, for the sake of having display himself as "the hero of our days" to the public, which often was not knowledgeable in the right way, and each time tried to prove the expediency of actually non-payable transferring State concern “Norilsk Nickel”, which was on the last privatizing stage, in private property to him and to oligarch Vladimir Potanin by the Government in the middle of 90-s years of XX century.
 
1. in 1989 year, when the State Industrial merger Norilsk Combine could achieve the peak of performance indicators (there were shown all production complexes of the industrial merger on the planned output) when Norilsk Combine achieved its maximal financial and economical attractiveness, it was united with five more State enterprises into State concern “Norilsk Nickel”.
 About that was issued the decision 947 of the USSR Cabinet Council of the 4th November, 1989 year. 
 There were five underground mines as members of State industrial merger Norilsk Combine by 1989 year which extracted sulfide copper-nickel ores from the three deposits. The sixth mine had open-cut (pit-run) method of the ore extraction process.
 
It is important to note that the State continued invest financial means to the design and building of one more mine - “Skalisty”, already in  the Gorbachev Perestroika time (!).
This mine should be reserve of the rich raw, in the form of the self sulfide chalcopyride and pyrrotite ores, for the provision metallurgical redistribution of the State industrial merger Norilsk Combine.
In the most difficult on all counts 1993 year, when in the country was continuing inflationary collapse in prices and Russian rubble rapidly went down in value (the inflation in 1992 year was 2508,8%, in 1993 year – 839,9%), for these aims of mine’s operational control was established directorate of the mine “Skalisty”, and also augmented the amount of its financing.
It brought to that from 1996 year in the mine “Skalisty” was began rich ore mining on the level 850 meters above the ground which was passing with the development, it was amounted to 50 thousand tons in that first year.
However, all the financial-economic result from the first ore processing of the mine “Skalisty” and realization of received as the result non-ferrous and precious metals went into the disposal of the new management of RJSC “Norilsk Nickel”, which was subordinated to JSCB "UNEXIM-Bank" (after that on the 13th April of 1996 year was discharged Filatov A.V. from the post of "Red general CEO" of RJSC "Norilsk Nickel" at the urgent request of the future Yeltsin's oligarchs Prokhorov M.D. and Potanin V.O.by the executive order, and the henchman of JSCB "UNEXIM-Bank" Khloponin A.G. succeeded him).
 
2. Concentrated attention that THE INITIAL SOURCE OF FORMING INVESTING FINANCIAL MEANS, which were directed by the Government on the development of the city-forming industrial merger Norilsk Combine and its city, WAS THE HIGH PROFITABILITY OF PERSONALLY Norilsk Combine (!).
The idea of the real volume of the Government investment and the rate of the development of the whole industrial production, both in the basic and in the concomitant, can be seen from the following information:
a) during the period from 1973 to 1988 years, when Kolesnikov B.I. was “Red CEO” of the Norilsk Combine, it was completed the building and commissioning Nadezhdinsk metallurgical factory, Talnakh concentrating mill, the mine “Taimyrski”, the Dudinsk port became the seaport in the full sense of the word;
b) give the extract from the reporting planned documents, which was approved at the 2nd March of 1982 year at the plenum of Taimyrsk district committee of the workers' trade union of metallurgical industry: “By the beginning of the XI five-year plan (1981 – 1985 years) was principally finished the making productive capacities, which were provided by technical-and-economic report of the development NMMC (Norilsk Combine) for 1971 – 1980. THE BASIC FOUNDS OF THE COMBINE WERE INCREASED BY THREE TIMES for this period and nowadays it is nearly four billion rubles, mining of the rich copper-nickel ores increased by 4,5 times, productivity – more than by 60%.(!).
 
3. ECONOMIC PERFORMANCES of the profitability of State mining and metallurgical industry merger of (concern) “Norilsk Nickel”, incorporated in RJSC “Norilsk Nickel” (at the management of “Red CEOs”) were:
a) consolidated balance profit of the State concern “Norilsk Nickel” (before its corporatization and privatization), which was gotten in the period from the 1st January till the 1st July of 1992 year, was 27 947 846 000 RUB., that was equivalent to $223 118 700 (125,26 RUB./$), but the net profit, which was remained at the industrial merger, - $115 439 800;
b) consolidated net profit of RJSC “Norilsk Nickel”(corporatized State concern, before finishing its privatization), which was gotten during 1995 year (with “Red CEOs”), was 3 393 billion RUB., that was equivalent to $730 344 900 (4645,75 RUB./ $).
 
 
Based upon the presented total amount of account payable (debts) of the five from six sub-companies of RJSC “Norilsk Nickel” in 1995 year (in salary payment, to the suppliers, to the contractors, in taxes and others compulsory payments), IT WAS NECESSARY for their financial rehabilitation (without OJSC “Norilsk Combine”) ONLY about 47% of the RJSC “Norilsk Nickel” consolidated net profit which was gotten in the same 1995 year ($343 453 700) (!).
Moreover the situation with the arrears in OJSC “Norilsk Nickel”, mostly the current but not the overdue debts which were easily repaid by the debentures towards them, was not depressing at all.
 
Hence the following CONCLUSION:
there was not the “Titan” efforts (like “a galley slave”) for 15 hours in a day, but Mikhail Prokhorov GOT from the RF President Yeltsin B.N. ACTUALLY NON-PAYABLE SUPER PROFITABLE MINING AND METALLURGICAL INDUSTRIAL MERGER RJSC “Norilsk Nickel” (corporatized State concern “Norilsk Nickel”), by then exactly on the eve of the privatization it was COME TO THE PLANNED OUTPUT, which was managed by the command of the professional managers with the long service, NEVER WAS IN THE ECONOMIC DECAY (PROLONGED CRISIS), MADE HIM (Prokhorov) THE DOLLAR BILLIONAIRE (!!).
 
 
11.  HOUSING, as the Measure of the Social Responsibility of the “Red CEOs”,
and its Absence in the Days of the Oligarch Prokhorov M.D.
and the Heads of his Company.
 
Touch upon the AMOUNT OF INVESTING FINANCIAL MEANS by the Government FOR THE DEVELOPMENT OF THE AVAILABLE HOUSING, objects of the social-cultural and communal-general functions of Norilsk industry area's localities (Big Norilsk), note that THERE WAS ONLY ONE SOURCE OF THESE INVESTMENTS IN THE SOCIAL SPHERE – COLOSSAL PROFITS AT THE HIGHEST LEVEL OF PROFITABILITY THE STATE MINING AND METALLURGICAL CITY-FORMING INDUSTRY MERGER Norilsk Combine (the leading enterprise of the State concern “Norilsk Nickel”). 
 
1. Stable profitable work of Norilsk Combine allowed the State spare no expend means for the purposeful financing of housing for the northerners, that resulted in improvement of their standard of living.
 In particular, to the middle of 80-s years of XX century altogether in towns and villages of the Big Norilsk annually put into use an average about 0,75 square meters of living space per person , it was 1,8 times as much than for the country as a whole.
 
The available housing of Norilsk industry area's localities was increased by 22,3% for the first four years of XI five–year plan (1981 – 1985 years) and on the 1st January of 1985 year it was 3 886 600 square meters of living space. An average 13,8 square meters usable living space per person, that was by 2 square meters more compared with the information taken on the 1st January of 1981 year.
High rates of nonindustrial building turned out well keeping up to 1989 year, when there were built and commissioned about 200 thousand square meters of usable living space for the last time. Further, in light of the obvious deterioration in political-economic environment in the country, the amount of the State financing of civil engineering activity became fall.
 Thus, there were built and commissioned 168,2 thousand square meters of housing in 1990 year, in 1991 year – 87,6 thousand square meters.
In spite of the weight of Gaidar’s economic reforms when during 1992 year the rate of ruble inflation (devalvation) was 2508,8% , the State industrial merger Norilsk Combine headed by the “Red CEO” Anatoly Filatov for 1992 year could secure the completion of the building and commissioning the dwellings, in which the quantity of the useful living space was 93,3 thousand square meters, though it was very difficult during the salutatory daily price increase (!).
In 1993 year the housing was still in progress, as the result three objects of the social housing were put into operation.
 
However, already in 1994 year, when RJSC “Norilsk Nickel” was included in FIG OJSC “Interros”, and all its financial flaws from the export of the finished output were put under the control of JSCB "UNEXIM-Bank", the social housing development in Norilsk and Dudinka was stopped at all (!).
 
2. Total amount of investments, which were absorbed by the Norilsk Combine from 1986 to 1988 years in the course of realization the social housing program off-site the Taimyr Peninsula, was 8,23 million rubles, from which 1,68 million rubles for the financing housing co-operative (!).
In 1989 year the amount of investments housing off-site the Taimyr Peninsula was 2,89 million rubles, in 1990 year – 6,09 million rubles, and in 1991 year – 48,9 million rubles.
Altogether, all this allowed from 1988 to 1994 years the State industry merger Norilsk Combine (OJSC “Norilsk Combine”) to get more than 1500 ready for use flats for the organization the resettlement of Norilsk’s retirees “to the land”
 
After completion of privatizing RJSC “Norilsk Nickel” the socially-important PROGRAM of building and acquisition housing off-site the Taimyr Peninsula for the organization the RESETTLEMENT OF NORILSK’S RETIRES actually was no more in those amounts in which it was realized during the “Red CEOs” management (!).
 
Altogether, after the transferring the reins of RJSC “Norilsk Nickel” to the managers from the company of Prokhorov M.D. (first of all Kholoponin A.G.) 66 incompleted objects of housing at the territory of the Norilsk industry region and also 10 in Dudinka (port city) “died on the vine” to various stages of completion (!).
During the time, when Kholoponin A.G. was the general director of the RJSC “MMC “Norilsk Nickel” (from 1996 year), and then Prokhorov M.D. was the general director of the RJSC “MMC “Norilsk Nickel” (from 2001 year) no one of these objects were built and commissioned (!).
Only two objects of incompleted constructions (which were not accounted for above), they were both in 90% degree of readiness on the moment of changing authorities in RJSC “Norilsk Nickel”, and were finished and given for the commercial occupation from the beginning.
 
Most of other objects of the social “unfinished building” still stay dull, useless huge molded, partly cracked from the time building material, already have presented the hazard to human life and health, like a somebody’s uncleared refuse after more than fifteen years, or like a frozen shooting area of the disaster film.
 
 
12. CONCERN FOR RISING GENERATION
and FOR HEALTH OF THE CITIZENS,
as the Measure of the Social Responsibility of the “Red CEOs”,
and its Absence During the Time of the Oligarch Prokhorov M.D.
and the Heads of his Company.
 
1. For the first four years of XI five-year plan (1981 – 1985) the industry merger Norilsk Combine BUILT AND COMMISSIONED 20 preschool institutions for 280 places in each DUE TO THE GOVERNMENT FINANCING.
Then, in the time of the Union SSR, the rate of construction of the preschool institutions of the towns and villages in the Norilsk industrial region was superior 2,5 times to the average statistical showings in all settlements of the Russian Soviet Federative Socialist Republic.
To the middle of 80-s years of XX century Norilsk more than three times did the average statistical showings ahead of RSFSR in the rate of construction of the schools (!).
 
During the time, when Kholoponin A.G. was the general director of the RJSC “MMC “Norilsk Nickel” (from 1996 year), and then personally Mikhail Prokhorov was the general director of the RJSC “MMC “Norilsk Nickel” (from 2001 year), THERE WERE NOT BUILT OR RECONSTRUCTED any objects of the social-cultural purpose, preschool institutions, schools in the settlement of Big Norilsk and Dudinka (!).
On the contrary, amount of the functioning preschool institutions in Norilsk and Dudinka curtailed drastically – 92 (on the moment of privatizing RJSC “Norilsk Nickel”), about 60 at the present time.
 
Only after Prokhorov M.D. left the post of the general director of OJSC “MMC “Norilsk Nickel” in April of 2007 year, and also after the visit of the Prime Minister of the RF Government Putin V.V. in Norilsk, “the ice broke up”, - and in Autumn of 2011 year the one preschool institution which nearly two years was on reconstruction finally was commissioned (!).
Also, thanks to the demand of the Chairman of the RF Government Putin V.V. to the owners of RJSC “MMC “Norilsk Nickel”, for increasing the amount of pumping up the municipal budget of Norilsk, there was begun to build two more preschool institutions.
The present leading shareholder of the Company Potanin V.O. corrected planning performances of the tax planning system, and without increasing of the real revenues of OJSC “MMC “Norilsk Nickel” the assessments to the municipal budget of Norilsk were really increased, made it one and a half times as much (the oligarch did not risk to contradict to the Chairman of the RF Government Putin V.V.).
 
2. There is the sanatorium-preventative clinic “Valyek” only in one and a half of tens kilometers from Norilsk, which is remained in the property of OJSC “Norilsk Combine” (subsidiary company of RJSC “Norilsk Nickel”) in the course of corporatization and privatization of RJSC “Norilsk Nickel”.
Simultaneously till 450 workers of industry merger could have a check-up on-the-job, get a competent medical assistance, including treatment procedures in this sanatorium.
There was taken the decision about closing of the sanatorium-preventative clinic “Valyek” in spring of 2007 year under the leadership of Mikhail Prokhorov, as a not profile and very costly asset for the OJSC “MMC “Norilsk Nickel”. There was made an apartment hotel in the opened building for the accommodation of secondees security guards to Norilsk, but 137 persons of the medical staff went for searching other job.
 
3. During the period of general directorship of Mikhail Prokhorov in OJSC “MMC “Norilsk Nickel” he had to periodically prove that in the company was taken a program for environment protection of Norilsk industry district, and it was in progress, and there were real positive results.
This was far from being the case.
It’s known that American scientists to carried the scientific investigation in 2006 year about compiling the list of the ENVIROMENTALLY DIRTIEST CITIES IN THE WORLD, as the result Norilsk took the “honorary” 8-th place (!).
However, the trouble was not even that the environmental situation in Norilsk industry district improved or deteriorated after that Prokhorov M.D, who was also the general director of the company during the long time, became the part owner of the mining and metallurgical industry merger (OJSC “MMC “Norilsk Nickel”).
 
Quoted an extract from the document of “The special purpose program about environmental protection for midterm (2005 – 2006 years)”, this was prepared by MI “Ecology” in 2005 year (DURING THE TIME OF THE GENERAL DIRECTORSHIP OF Prokhorov M.D.):
 “The high level of air pollution help to increase incidence rate of the citizens … There is a trend to increase of the general and initial disease incidence of Norilsk people for the last five years and the general and initial disease incidence rate in 2002 year exceeded them of the 1996 year for 19,9% and 3,3%...
In comparison with the “background” 1996 year 3 times INCREASE THE ENDOCRINE DISEASES, CIRCULATORY ILLNESS WAS INCREASED for 83%, THE LEVEL OF NEOPLASM WAS INCREASED for 63,8%, THE LEVEL OF CONGENITAL DEFECTS (malformations) WAS INCREASED for 58,8%. These diseases are "indicators", i.e. due to the Ecology. Thus, bad environmental situation has an undoubted influence on the health level of Norilsk people”.
 
These examples clear demonstrated “careful” altitude of the Russian new-riches – oligarchs, in this case in the person of Mikhail Prokhorov, to the health of the Russian citizens, who “don’t take a taxi to the bakery”!..
 
 
13. WERE THE NEWLY PARTLY BOURGEOIS MANAGERS
(still Immature Financiers-Swindlers)
 the Henchmen of the Oligarch Prochorov M.D.,
Really BETTER than “RED CEOs”?
 
You can often to hear from Prokhorov M.D. that his henchman and friend Aleksandr Khloponin, being talented manager, was appointed by him to the post of the general director of RJSC “Norilsk Nickel” in due time, found the way out of the crisis of financial insolvency for RJSC “NN” and its subsidiaries.
We beg to differ it and argue the following.
 
1. Make a simple COMPARISON of the accounts payable of RJSC “Norilsk Nickel”, gotten for years of managing the company by the “Red CEO” Anatoly Filatov, with the company's accounts payable, gotten during the time, when Aleksandr Khloponin was its general director.
a)for the most difficult four years (1992 – 1995) of critical reform period, which was in the country, the leadership at first of the concern “Norilsk Nickel”, and then – RJSC “Norilsk Nickel” (“Red CEO” Anatoly Filatov), organized the work of the all industry merger so, that kept hold of, not afraid to use the word, the total accounts payable on the level 6 trillions 831 billion rubles.
For the currency rate on the 29th December of 1995 year (4640 rub./$) this sum was equivalent to $1 472 200 000, that was not such a dramatic indicator in comparison with the value of the company assets and its profitability;
b) during the first half-year of 1996 year and for the one year of the financial management by Aleksandr Khloponin (from the 28th June of 1996 year – appointment to the post of general director, till the 1st July of 1997 year) – the accounts payable of RJSC “Norilsk Nickel” increased to the level 16 trillions 900 billion rubles.
 For the currency rate on the 28th June of 1997 year (5782 rub./ $) this sum was equivalent to $2 922 900 000.
 
SO, THE BOTTOM LINE:
for the year of managing of RJSC “Norilsk Nickel” by Aleksandr Khloponin and for the half-year during which “exported” the power at Anatoly Filatov (“the Red CEO”) were forming the new membership of the company's controls, the growth of accounts payable (debts) of RJSC “Norilsk Nickel” was $1 450 700 000:
 
$2 922 900 000 - $1 472 200 000 = $1 450 700 000 (!!)
 
The journalist “Kommersant – DAILY” Mariya Rozhkova wrote about it in her article “Norilsk Nickel” is Still in Crisis” ( 92 of 19th June, 1997 year): “ And the most impressive factfrom the end of 1995 year the common accounts payable of RJSC increased more than two times”.
Annual growth of accounts payable was equal:
-          under the general director of RJSC “NN” Filatov A.V. - $368 000 000;
-          under the general director of RJSC “NN” Khloponin A.G. - $967 000 000
 
2. And besides, the strange fact is that being “talented manager” and the general director of RJSC “Norilsk Nickel” Aleksandr Khloponin somehow contrived to build up such account payable (debts) in the most favorable period of time in economics, in comparison with the years of managing of RJSC “Norilsk Nickel” by Anatoly Filatov (!):
a) during the four years under review, the inflation of the ruble changed the following way: in 1992 year it was 2508,8%, in 1993 year – 839,9%, in 1994 and 1995 years – 215% and 131,3% accordingly.
From the 1st January of 1992 year to the 31st December of 1995 year the purchasing power of Russian currency reduced 595 times;
b) in 1996 year the inflation of ruble was 21,8%, but in 1997 year and much less so – 11%, that didn’t close compare with the activities mentioned above, emphasizing the improving economical situation in the country, which was recovering from the Gaidar's “shock therapy”.
So, for the year and a half (from the 1st January of 1996 year to the 1st July of 1997 year) the purchasing power of ruble fell for 27,3% (!!).
 
3. World prices of non-ferrous and precious metals fixed in 1996 and 1997 years (with Khloponin A.G.) were much more attractive for RJSC “Norilsk Nickel”, than the world prices for these goods of 1992 - 1994 years (with Filatov A.V.).
 
4. And under the terms of selling the finished goods of RJSC “Norilsk Nickel” for the export Aleksandr Khloponin had simply the “chocolate terms”, after holding the collateral auction of control interest of RJSC “Norilsk Nickel” company practically at once WAS RELIEVED OF THE BURDEN OF OUTWARD PAYMENTS was by the President Decree (!).
While, during the whole four-year term (1992 – 1995), the period under review of managing the company by Anatoly Filatov, nobody relieve the payment of import custom duties for the products of RJSC “Norilsk Nickel” at crossing border of Russia (!).
For example, there was paid $121 670 000 the custom duties only for only one 1995 year and only by OJSC “Norilsk Combine” (the leading industry merger of RJSC “Norilsk Nickel”).
There was one more exporter in RJSC “Norilsk Nickel”OJSC “Combine “Severonickel”, which payments for Russian budget in 1995 year (about $300 000 000) were even more than the payments of OJSC “Norilsk Combine”.
 
THE SIMPLE CONCLUSION:
during the time of his general directorship of RJSC “Norilsk Nickel” Aleksandr Khloponin, surely, had known his business, experienced financier-swindler (the henchman of Mikhail Prokhorov) ABSOLUTELY DID NOT FIND THE WAY OUT OF THE CRISIS for RJSC “Norilsk Nickel” (actually, it was not at all, but there were some temporary financial difficulties and their reason was multiple hyperinflation of ruble in 1992-1994 years, as a fatal effect of Gaidar’s economic reforms), HE PURPOSED QUITE DIFFERENT AIMS, but about it will be given the further explanation (!!).
 
 
14. THE AIMS WHICH was Real WORK FOR
and ACHIEVED ALEKSANDR KHLOPONIN,
the Henchman of Prokhorov M.D
at the Post of the General Director of RJSC “Norilsk Nickel”.
 
During the first half-year of 1996 year and for the one year of financial managing by Khloponin A.G. (from the 28th June of 1996 year - – appointment to the post of general director, till the 1st July of 1997 year) - the accounts payable of RJSC “Norilsk Nickel” increased to the level 16 trillions 900 billion rubles.
 For the currency rate of the 28th June, 1997 year (5782 rub./ $) this sum was equivalent to $2 922 900 000.
For the year of managing of RJSC “Norilsk Nickel” by Khloponin A.G. and for the half-year during which “expropriated” the power at Filatov A.V. (“Red CEO”) and were forming the new membership of the company's controls, THE GROWTH OF ACCOUNTS PAYABLE WAS $1 450 700 000.
 
Such growth of consolidated accounts payable of RJSC “Norilsk Nickel”, over the short period of company management by Aleksandr Khloponin, was explained by that he, as the “talented manager”, didn’t solve and ever wanted to solve the problems of repayment or re-structured the accounts payable (debts) of RJSC “Norilsk Nickel” (from 1996 till 1997 years) (!).
Brass hats of JSCB “UNEXIM-Bank” with Prokhorov M.D. and Potanin V.O. at the head, set in private TWO THE MOST IMPORTANT AIMS, for the interests of JSCB “UNEXIM-Bank” and Kremlin, to Khloponin A.G., as to the person who was assigned to the post of the general director of RJSC “Norilsk Nickel” in 1996 year, which he achieved as the result and fully justified the "high" confidence.
 
THE FIRST AIM (to pay “THE KREMLIN TRIBUTE”):
by means of legal theft of the most part consolidated profit of RJSC “Norilsk Nickel” which was gotten at the result of the activity of its sub-companies in the second part of 1995 year and also in the period from 1996 till 1997 years, to the bank accounts of the third persons (who were authorized to conduct the special manipulations of the intermediator firm), TO PROVIDE:
1) with financial means an election campaign of 1996 year in quantity demanded (set by the Kremlin administration of the RF President Yeltsin B.N. from RJSC “Norilsk Nickel” for the future oligarchs Prokhorov M.D. and Potanin V.O.) for the candidate of the RF President Boris Yeltsin, who aimed with all his might to sit at the Presidential chair at the second time (as the Head of the Government);
2) the earliest transferring of the financial means, demanded by the high-ranking Kremlin State officers, on the bank accounts of the private companies, being the property of the “Family” (the entourage of Yeltsin B.N.), accountable, controllable or dependable on it.
All these payments, gotten from the consolidated profit of RJSC “Norilsk Nickel” (and from the accounts of its sub-companies), were as a REAL PAYOFF (the “KREMLIN TRIBUTE”) paid not from the means of JSCB “UNEXIM-Bank”, but from the State RJSC “Norilsk Nickel” (corporatized State concern “Norilsk Nickel”, which privatization was not finish) for non-payable transferring the controlling interest of RJSC “Norilsk Nickel” into the ownership of Prokhorov M.D. and Potanin V.O. in the future by the State power;
So as it was in practice on the 5th August of 1997 year, after that these two persons involved became the oligarchs (!!).
 
THE SECOND AIM (to create a situation, when “THE WORSE THE BETTER”):
to provide legalistic and economical argument, confirmed by the formal dates of the business accounting and reporting (prepared in the necessary context, where did not take into account the income, which were settled on the accounts of the representative intermediator firms of JSCB “UNEXIM-Bank”, and accounted income dissolved in blown-up only on the paper costs for the current activity and far-fetched accompanying expenses, there was not collected debts receivable, were not conducted the mutual offsets of the cross demands , but the account payable grew, bull at a gate), for that RJSC “Norilsk Nickel” was really in the most difficult financial-economical position, suffering from the crisis of nonpayment.
 
The negative picture the state of affairs in RJSC “Norilsk Nickel” was need for argumentative reason of minimization the price of controlling interest of RJSC “Norilsk Nickel”, for showing this negative picture to the deputies of the State Duma the LA of the RF, high-ranking State officers of the different public authorities, management and legality control by procuracy) which was not in the secret corrupt association with the RF President Yeltsin B.N. and his enviroment on the question of industrial privatization (!).
For the information, there was established in some countries, like the USA, the criminal responsibility of private corporations for deliberately making bankrupt of the legal entities which were given to them for the management, or for the deliberately misinterpretation of the information in outgoing documentation about financial-economic situation of the legal entities which were given to them for the management with the purpose of significant reducing their capitalization (the price) of organization for taken control of them (buying-out) for the possible minimum of the financial means (fraud!). 
The USA puts to prison for the frauds, but not Russia!..
 
AS THE RESULT:
1) JSCB "UNEXIM-Bank" substantiated at the Summit and agreed the “penny” price of controlling interest of RJSC “Norilsk Nickel” to the 5th August of 1997 year, which was only $250 000 000, against several billions in the currency of the North American States which were forecasted by the most of financial analysts (!);
2) due to the powerful finance supporting of the “newborn” oligarchy the Russian people “chose by heart” again, and Boris Yeltsin (in 1996 year) was elected to the post of the RF President at the second time (the first time in the status of the Government Head by the RF Constitution of 1993 year) (!);
3) whereas, Aleksandr Khloponin “honorably” resolved the both problems, the oligarchs (Prokhorov M.D. and Potanin V.O.) paid off by the considerable block of shares of RJSC “Norilsk Nickel” with him as “bonus”, and he came closely to the status of the dollar multibillionaire(!);
4)In the gratitude for the successful achievement of the mentioned above aims, the RF President Yeltsin B.N. gave a peculiar bonus of political acknowledgement to the oligarch Potanin V.O., made him the chief deputy of the RF Prime Minister for some time (!);
 
  In general, mentioned persons involved easily and with usury SATISFIED THEIR OWN MATERIAL AND VAINGLORIOUS INTERESTS, and besides, exclusively for account of the impoverished country, which lost the greatest, high profitable, modern mining-metallurgical industry merger RJSC “Norilsk Nickel” and financial means as annual super profits from its assets! 
 
But the question of repayment consolidated accounts payable of RJSC “Norilsk Nickel” was generally put and then forced resolved only after finishing the process of privatization RJSC “Norilsk Nickel” (after the 5th August, 1997year), made Prokhorov M.D. and Potanin V.O. industrial capitalists – dollar billionaires.
 
 
15. USING THE ADMINISTRATIVE RESOURCE
of the State Power in the Story of Repayment the Debts
 of RJSC “Norilsk Nickel” by the Management Team of Prokhorov M.D.
 
Undoubtedly, the repayment consolidated accounts payable (debts) of RJSC “Norilsk Nickel” was not with the help of the “talented management” of its general director Aleksandr Khloponin, the placeman of Mikhail Prokhorov, but by the way of wide use of the administrative recourse power like-minded people of the RF President Yeltsin B.N.:
 
1) in a month and three weeks after the 5th August of 1997 year, on the 26th September of 1997 year not earlier, was issued the frankly lobbying regulation of the RF Government 1236 “About repayment the arrears in payments of the joint-stock company “Norilsk Mining and Metallurgical Combine named after A.P. Zavenyagin” to the Federal budget and the RF Pension fund”.
The given legislation act allowed to carry out the restructuring of past due accounts payable in insurance fees of RJSC “Norilsk Combine” to the Pension fund with grace extension payment till 5 years, and set the preferential order of transferring the similar current payments of this Mining and Metallurgical company;
 
2) in two months after the 5th August of 1997 year, on the 8th October of 1997 year, was signed the Agreement between the Administration of Taimyr Autonomous District, RJSC “Norilsk Nickel” and OJSC “Norilsk Combine” about the restructuring of past due accounts payable in payments of OJSC “Norilsk Combine” to the budget of Taimyr Autonomous District, including the budget of Dudinka, as of 01.08.1997;
 
3) showing the prudent financial politeness neither the former, nor the new management of RGSC “Norilsk Nickel” HAD DEBTS DIRECTLY TO the Russian FEDERAL BUDGET;
 
4) in three months and a week after the 5th August of 1997 year, on the 11th November of 1997 year, there was concluded an General Agreement between the Administration of Krasnoyarsk Territory, RJSC “Norilsk Nickel” and OJSC “Norilsk Combine”, about the repayment the arrears of OJSC “NC” to the budget of Krasnoyarsk Krai.
For carrying out achieved agreements there RJSC “Norilsk Nickel” transferred for the control all the management rights of OJSC “Krasnoyarsk Non-Ferrous Metal Working Plant” (OJSC “Krastsvetmet”) to the Administration of Krasnoyarsk Territory , by selling 100%-tage block of shares of this company to the State property.
The feature of bargaining was that based on the price of the controlling interest of RJSC “NN” ($250 000 000), paid to JSCB "UNEXIM-Bank" through LLC "Swift", the directly proportional calculated purchase price of OJSC “Krastsvetmet” was hardly exceeded $2 000 000, but the arrears for the region’s budget was scores times more (!).
 
It was absolutely SIMPLE FRAUDthe Russian Federation, and it’s mean, excuse the pathos, its multinational people became poorer for difference of the selling price (under the privatizing from the Federal property) OJSC “Krastsvetmet” as part of RJSC “Norilsk Nickel” and the purchase price (under the nationalization to the State property of the Federal subject) (!!).
 
IT WENT AWAY FROM GOVERNMENT (on behalf of the Power in Moscow), and CAME (OJSC “Krastsvetmet”) TO THE GOVERNMENT (on behalf of the sub-federal region in Krasnoyarsk), like a “boomerang”, the only thing was that in general the RUSSIAN FEDERATION (its consolidated budget) LOST IN A GREAT MEASURE IN THE TAX LEVY from the flight of this boomerang;
 
5) but the real debentures to suppliers and contractors, and also the debts for other payments, were practically fully retired to the 31st December of 1998.
 It could achieve with little effort due to the 17th August of 1998 year, when suddenly without good economic causes the RF Government DEFAULTED (no one foreign analytic agency confirmed the presence preconditions in Russia for default), that lead to refusal from the fixed “currency corridor” and pegged the rate of exchange for a long time (6 dominated rubles for $1).
As the result, BY SELLING THE FOREIGN EXCHANGE FOR THE NEW PRICE (24 denominated rubles for $1) by the end of 1998 year, the greatest Russian exporters, including OJSC “MMC “Norilsk Nickel”, REALIZED THE RUBLES-MASS FOUR TIMES MORE FOR THE SAME AMOUNT OF FOREIGN EXCHANGE realized and quickly did away with the remaining debts.
 
Russians oligarchs, the suppliers of raw materials for the export, could thank again the RF President Yeltsin B.N., who by the secret administrative methods “played the card” of the DEFAULT in August of 1998 year, helping to the economic recovery of their private businesses from the debt burden, sacrificed once again the interests of the most Russian citizens, being consumers of import, and interests of the importers and theirs banks teamed with it (worth to remember the sad story about JSCB “Incombank” bankruptcy, by the way, the management team of Mikhail Prokhorov made a fairly profit out of it, in fact "tap-dancing on the grave" of the former colleagues of the oligarchic club) (!!) .
 
16. THE MITHS about the Team of “Talented Managers” of Prokhorov M.D.,
as if They Found the Way out of the Non-payments Crisis for RJSC “Norilsk Nickel”, and the Investments of the New Owners in the Privatized Business.
 
We had to hear many times from Mikhail Prokhorov, that there was sent the professional financiers team to Norilsk in due time – experts in financial-economic recovery enterprises, that RJSC “Norilsk Nickel” “was rose from knees” with the help of timely multi-billion investment in it economy and industry, carried out by JSCB "UNEXIM-Bank”.
Lets us beg to differ this (!).
 
1. All the story of the State industry merger Norilsk Combine, and the whole State concern “Norilsk Nickel” abounds with the examples confirmed by the events and facts which were easily argued that in 90-s years of XX century the State enterprises of this sector of the former national economy based on natural raw material resources of the country, was not in need of any vital private investment in production.
It was so even during the period of the economic crisis, in the period of the falling world prices for non-ferrous and precious metals, when the State industry merger Norilsk Combine remaining loyal to its city-forming status, continued duly finance the municipal-domestic economy of Norilsk and Dudinka.
The technology of production was so perfectly well done, achieved its peak for three- four years before corporatization and privatizing Norilsk Combine, which was not in need of any significant long term investment. The gained means, after realization of non-ferrous and precious metals, sufficed with a vengeance for the State city-forming industry merger to make the annual capital and maintenance of buildings repair, of facilities and equipment, for modernization of production, for building and repair housing stock, for the development of the social infrastructure.
 
Really THERE WERE NO and couldn’t be ANY INVESTMENT IN INDUSTRY PRODUCTION, and under the cloak of against the pledge of non-ferrous metals going for export , by readiness putting the finished output on the storage of Dudinka sea-port, JSCB "UNEXIM-Bank” gave revolving lines of credit (borrowed funds), which contributed only to replenishment of the enterprise circulating assets in generally.
 
2. As well as there was no any team of supermen – managers, sent by Mikhail Prokhorov from Moscow for raising as they say thieved and neglected by the previous management of the “Red CEOs” economy of the industry merger “Norilsk Nickel”, pulling its economy out from the state of much far-fetched financial-economical crisis.
The general director of RJSC “Norilsk Nickel” Aleksandr Khloponin made flying visits to Norilsk.
 
Kuznetsov L.V. (the Governor of Krasnoyarsk Territory at the recent past and now the RF Minister of Northern Caucasia affairs) was more or less constant representative of the new owners. His duties included to control that sub-company (OJSC “Norilsk Combine”) learnt to survive with those “paltry” financial recourses, which the authority of RJSC “Norilsk Nickel”, approving the budget of the “daughter”, allocated to it only for the necessary simple reproduction of labor, energy-supply and maintaining the capital equipment in a bearable condition.
 
3. The only one thing that Aleksandr Khloponin and Lev Kuznetsov really succeeded was the total economy of the financial means at the highest level of the profit of the sub-companies of RJSC “Norilsk Nickel”, being for the paying of the oligarchic farming (the “KREMLIN TRIBUTE”) for consolidation of the material welfare and capitalist power of Mikhail Prokhorov and Vladimir Potanin.
 All this was reached by means of approving the annual (quarterly, monthly) budget of the company taking into account the minimal-necessity of the expenses items and a hard control for its execution (!).
 
4. Perhaps, it is reputed that another “managerial achievement” of the henchmen of Mikhail Prochorov was the organization of close collaboration of financiers-taxmen of RJSC “Norilsk Nickel” with the persons of similar administrative functions from the Administration of Big Norilsk and Dudinka with the aim of identification of the real needs of the appropriate municipals, district budgets (discounting promising development).
It was necessary within the framework of introduced TAX PLANNING SYSTEM for the future detailed working-out of rates for tax liabilities with determination of theirs sources, counted based on minimization principle of the budget revenue of local authority.
All the process of tax planning built like bottom-up: from the active non-formal optimized correction the amounts of compulsory payment to the municipal budget, partly – to the budget of Krasnoyarsk Territory, and up to the formal payment planning to the Federal budget (!)
It could be characterized by the following way with one phrase: PAY THE TAX as much AS IT IS NECESSARY, beforehand counting the possible minimum and approaching to it, but NOT AS IT MUST BE!”.
 
It was looked like the tax system of the country couldn’t guaranteed provide the growth of the financial receipts to the revenue part of the municipal budget of Norilsk and Dudinka proportionally associated with it, even under the growth of market (world) prices for the production of OJSC “MMC “Norilsk Nickel” and increasing the quantity of its production (!!).
 
 
17. BY-LAW AND ILLEGAL REGULATION
OF THE PROCESS OF THE INDUSTRY PRIVATIZATION in Russia,
Which Gave the Multibillion Capitals to Prokhorov M.D.
(High- ranking CORRUPTION, Which Nourished the OLIGARCHY)
 
1.Many things were made unwise during the process of privatization in Russia. Without regard for the real economic characteristics of the country. There are 20 enterprises in Russia which make more than a half of national product. If these enterprises were transferred to the property by the special way, gradually, the Government could provide the necessary minimum for each citizen at their expense, - said, oddly enough, fugitive oligarch Berezovski B.N.
 
2. “I can definitely state that everybody who could fight his way to the Russian elite, kept within the law”, - wrote the same Boris Berezovsky, the oligarch-billionaire Mikhail Prokhorov repeats today.
One has to agree with this comment, because by efforts of the RF President Yeltsin B.N. the legislative power of the country actually was put off from taking a part in legal regulation of the process industry privatization by the script of Chubais A.B., the legal regulation of the process industry privatization was carried out only by Presidential by-law decrees and by the instructions of the RF Committee for the State Property (!).
 
3. If the legislative power, realizing the whole malignancy of the policy of Yeltsin B.N. “raised its disobedient head” they immediately got on the head.
So, the Decree of the RF Supreme Soviet 5475 – 1 of the 21st July, 1993 year “About amending and additions to the Decree of the Russian Federation Supreme Soviet of the 27th December, 1991 year 3020-1 “About differentiation of the State property …”, expounded in the new wording the clause 15 of the Decree 3020-1, the RF Committee for the State Property divested of exclusive authority for realization of the State Property of the federal Property.
It ACTUALLY TIED HANDS of Anatoly Chubais.
 
After which the RF President Yeltsin B.N. issued the anti-constitutional Decree 1400 of the 21st September, 1993 year(at once on returning deputies of the RF Supreme legislative authority from the summer vocation), that LEADED TO MAKING A COUP OF THE CHIEF EXECUTIVE, who was the Russian President, AGAINST THE HIGHEST AGENCY OF STATE POWER, which was the congress of Russian People’s Deputies (!!).
By that followed the SHOOTING of the Russian House of Parliament from the tank guns, death at least one hundred and a half persons, adoption the new wording of the RF Constitution, as the result the RF President turned from the mere Head of Executive Authority into the Head of the State (!!)
 
4. Two weeks had not elapsed after adoption the new wording of the RF Constitution, when the RF President Yeltsin B.N. had already issued the Decree 2284 “About the State program of privatization the State and municipals enterprises in Russian Federation”, the clause 6.1. which stated:
PRIVATIZATION … of the objects of the Russian corporation “Norilsk Nickel” REGULATED BY THE VALID DECREES and ORDERS OF THE PRESIDENT of the Russian Federation (!!).
 
Thus the RF President Yeltsin B.N. actually moved aside the Russian legislative power from the lawmaking participation in the industry privatization not only the State concern “Norilsk Nickel”, but also in the other raw giants of the country.
Further regulation the privatization process was passed only by issuing the Presidential Decrees and orders of the RF Committee for the State Property.
And the regulation questions of privatization housing were left to the legislative power (!).
 
5. Mikhail Prokhorov as the other oligarchs, to whom the RF President Yeltsin B.N. without compensation for the interests of the Government gave out super profitable assets of the country, REALY DID NOT BREAK THE RF LAWS OF PRIVATIZATION, AS ACTUALLY THERE WAS NO PRIVATIZING LEGISLATION, there were only Decrees and orders of the most high-ranking Russian Government Official – the RF President, being in transparent cahoots with them about shoving “into their private pockets” the best industry property of the country (!).
 
6. However all the same it is worth to consider that there were LEGAL REGULATIONS OF THE CRIMINAL LEGISLATION: the Article 93 Note of the RF CC (large-scale misappropriation the State and communal property), and also the Article 64 of the RF CC (parricide), according to which the maximum possible measure of punishment was the DEATH-PENALTY (!!).
 
Non usage of afore-cited legal regulations of the criminal right of the RF by workers of Russian law enforcement agencies in 90-s years of XX century to the famous players such as, Chubais A.B., Prokhorov M.D., Potanin V.O., Abramovich R.A., Fridman M.M., Vekselberg V.F. and the other like them, was entirely associated with that THE PROCESSES OF BY-LAW AND ILLEGAL INOFFICIAL PRIVATIZATION DISTRIBUTION in the interests of the very closed circle of the private persons (the chosen persons by President for the role of oligarch) the most profitable and super profitable State industrial corporations of the country, working on the raw materials base which were totally explored, developed and infrastructurally equipped the richest raw deposits, whose commercial output flowed on export, and backward – the tremendous foreign revenues, the RF President Yeltsin B.N. “GAVE COVER” for them, the Head of the Government in Russia – is the person who is not under the jurisdiction (!!).
 
Undoubtedly, that if there was given an estimation for the actions of Yeltsin B.N., Chubais A.B., Prokhorov M.D. and the other persons by independent international lawyers the specialists in the line of civil and criminal law, the actions of mentioned subjects would been qualified as deliberate, in collusion group of persons, large-scale misappropriation the State Federal property, entailed the weakening of the economic and defense power of Russia, and more over, this would been qualified as parricide!
That was precisely why the RF President Yeltsin B.N. proclaiming general amnesty, AVOIDED THE HONEST and OPEN LAW-COURT, both on the events of the August in 1991, and – of the September-October in 1993 years (!!).
 
Instead of this, Chubais A.B. got a gratitude from the USA (for some information, in the form of medal) for the organization the truly privatization lawlessness in Russia.
Like he the oligarchs - raw materials producers (PRIVAT – capitalists of Russia) such as Mikhail Prokhorov, up to now continuing annually to misappropriate the profit of LAWLESSLY privatized business, could boast of the rewards from the foreign States and Governments.
And these persons – are the business elite of Russia!?
“O tempora! O mores!”.
A. Korostelev,
 February 16,
2012 year
 
Translated by
Victoria Khidirova