While wasting my evening on studying bangla scripts and watching news debates on ET NOW, trying to understand the tangles of Indian politics, I’ve almost forgot the tangles of my homeland’s political, economical and social reality. Not for long time, though.
Yesterday, trying to submit tax payment for my sole trader entity in Russia, I found the internet banking application was down. Few minutes later I noticed a PR on my AMT bank’s website. It said that Russia central bank had cancelled AMT Bank's (former BTA bank) license…
Starting with the fact that AMT had around $530 mln in retail deposits. The investors are promised to get the compensation up to $25 300. Though, in case of Russia, not getting anything will not be a big nonsense.
My own story with the bank started long ago, in the beginning of my journalistic career. One of my first editorials in “Delovoy Peterburg” newspaper was a piece on a sister-company of the large real estate group in Kazakhstan (Bazis-A Corporation) The group was owned by TuranAlem Bank (later BTA Bank). The shareholder and board of directors Chairman was Mr Mukhtar Ablyazov. Before going into banking sector, Ablyazov was a head of the state-owned Kazakhstan Electricity Grid Operating Company (1997) and had been appointed as Minister for Energy, Industry and Trade (1998).
After rebranding in 2008, new BTA bank started aggressive promo in Russia (cheap rates for corporate account, high saving rates). Meanwhile, in 2008-2009 economy of Kazahstan (specially its real estate sector) was shattered by financial crisis even before it reached Russian markets. Kazakh BTA bank, always greedy for real-estate investments, was about to collapse when in the beginning of 2009 state-owned fund “Samruk-Kazyna” JSC acquired BTA bank. Though, Mukhtar Ablyazov still remained the chairman of Russian part of BTA bank and he then gained control over the bank through additional emission in 2009. Later BTA bank n Russia was renamed as AMT bank.
Mukhtar Ablyazov himself lest Kazahstan in 2009 and moved to London, the famous destination of Russian disgraced oligarchs. As The Guardian reported recently, businessman has won his battle to gain asylum in the UK regardless that he is facing claims for money laundering and embezzling billions of dollars not only from Kazahstan and Russia, but from Britain as well. According to Guardian, Ablyazov is accused of committing a £2.5 billion fraud against BTA bank, a case against him is being heard at the High Court. The true figure could be as high as £7.5 billion.
They say Ablyazov conspired to siphon money out of the bank through fake loans and share sales leaving it in financial crisis. The Royal Bank of Scotland, 83 per cent owned by the taxpayer, is among the creditors which will receive 50 per cent of any clawback from Ablyazov.
Several legal cases where Ablyazov and the firms he controls appear were filed in Russia since 2010. However, Mukhtar Ablyazov considers himself as a victim of political vendetta. ccording to Russia newspaper “Kommersant”, businessmen told newspaper that being a head of the bank he would not steal the money form its own company.
"I consider these legal cases… the intrigues of Kazakh law enforcement bodies, who, in turn, misleading Russian investigators intentionally”. Ablyazov said his problems were caused by his political activities and conflict with present Kazahstan government.
Later, in the end of 2010, Ablyazov told another Russian media resource (Slon.ru http://slon.ru/articles/509070/) that Nursultan Nazarbaev (Kazakhstan president from 1991, latest election extended his term till 2016!), had been asking the control packer of BTA bank for himself personally.
Well, coming back to Russia and its banking system which is fantastically mixed with political reality. Recently Central Bank was highly criticized for collapse of Bank of Moscow. This bank was one of the richest banks until the political establishment in Moscow Government changed in the end of 2010, when President Medvedev sacked Moscow governor Mr Luzhkov (was Governor for 20 years almost).
Mr Luzhkov’s wife was the richest woman billionaire in Russia as her companies in real estate and construction sectors earned leading positions in last 10 years (obviously, not without a hand of her husband). The Bank of Moscow itself was controlled by formed governor’s circle.
After Lushkov was sacked and new governor took position, Luzhkov and his wife, Ms Baturina, had to seek for asylum as well, as their business in Russia was destroyed in few seconds. The head of Bank of Moscow Mr Borodin had to hide himself in London as well as he suddenly became wanted by the Russian authorities for approving a $460 million loan that the police say ended up in the personal accounts of Ms. Baturina (I was not joking about London!).
So, recently Bank of Moscow was told to be about to collapse. That time President of largest state-owned bank VTB Andrei Kostin said that the possible collapse of the Bank of Moscow for the Russian financial sector by its value would be comparable to the collapse of the bankrupt in 2008, the investment bank Lehman Brothers to the global financial system.
As it always happens in Russia, suddenly VTB bank decided to buy Bank of Moscow and, right after that, Russian regulators provided a bailout package $14.15 billion to Bank of Moscow. What a great deal!
So, let us return to the main question. The question of a simple self-employed paying tax to the government, making her tiny savings, earning her penny by reporting about all those deals, politicking, billion kickbacks and glorious real estate projects!
What am I going to do now? Which bank should I chose now? Government VTB or Sberbank which will never collapse, they say? Who will ensure me that Mr Kostin (VTB head) or Mr Gref (Sperbank head), or, let it be, our ruling duo (Putin vs Medvedev), will not suddenly become a bitterest enemy of Russian nation (the next presidential elections are coming in 2012) and will note vanish somewhere in London, or, for example, Libya?
For an ordinary citizen, Russia is too taught to believe in anything and even more tough to plan the future.
Starting with the fact that AMT had around $530 mln in retail deposits. The investors are promised to get the compensation up to $25 300. Though, in case of Russia, not getting anything will not be a big nonsense.
My own story with the bank started long ago, in the beginning of my journalistic career. One of my first editorials in “Delovoy Peterburg” newspaper was a piece on a sister-company of the large real estate group in Kazakhstan (Bazis-A Corporation) The group was owned by TuranAlem Bank (later BTA Bank). The shareholder and board of directors Chairman was Mr Mukhtar Ablyazov. Before going into banking sector, Ablyazov was a head of the state-owned Kazakhstan Electricity Grid Operating Company (1997) and had been appointed as Minister for Energy, Industry and Trade (1998).
After rebranding in 2008, new BTA bank started aggressive promo in Russia (cheap rates for corporate account, high saving rates). Meanwhile, in 2008-2009 economy of Kazahstan (specially its real estate sector) was shattered by financial crisis even before it reached Russian markets. Kazakh BTA bank, always greedy for real-estate investments, was about to collapse when in the beginning of 2009 state-owned fund “Samruk-Kazyna” JSC acquired BTA bank. Though, Mukhtar Ablyazov still remained the chairman of Russian part of BTA bank and he then gained control over the bank through additional emission in 2009. Later BTA bank n Russia was renamed as AMT bank.
Mukhtar Ablyazov himself lest Kazahstan in 2009 and moved to London, the famous destination of Russian disgraced oligarchs. As The Guardian reported recently, businessman has won his battle to gain asylum in the UK regardless that he is facing claims for money laundering and embezzling billions of dollars not only from Kazahstan and Russia, but from Britain as well. According to Guardian, Ablyazov is accused of committing a £2.5 billion fraud against BTA bank, a case against him is being heard at the High Court. The true figure could be as high as £7.5 billion.
Several legal cases where Ablyazov and the firms he controls appear were filed in Russia since 2010. However, Mukhtar Ablyazov considers himself as a victim of political vendetta. ccording to Russia newspaper “Kommersant”, businessmen told newspaper that being a head of the bank he would not steal the money form its own company.
"I consider these legal cases… the intrigues of Kazakh law enforcement bodies, who, in turn, misleading Russian investigators intentionally”. Ablyazov said his problems were caused by his political activities and conflict with present Kazahstan government.
Later, in the end of 2010, Ablyazov told another Russian media resource (Slon.ru http://slon.ru/articles/509070/) that Nursultan Nazarbaev (Kazakhstan president from 1991, latest election extended his term till 2016!), had been asking the control packer of BTA bank for himself personally.
Well, coming back to Russia and its banking system which is fantastically mixed with political reality. Recently Central Bank was highly criticized for collapse of Bank of Moscow. This bank was one of the richest banks until the political establishment in Moscow Government changed in the end of 2010, when President Medvedev sacked Moscow governor Mr Luzhkov (was Governor for 20 years almost).
Mr Luzhkov’s wife was the richest woman billionaire in Russia as her companies in real estate and construction sectors earned leading positions in last 10 years (obviously, not without a hand of her husband). The Bank of Moscow itself was controlled by formed governor’s circle.
After Lushkov was sacked and new governor took position, Luzhkov and his wife, Ms Baturina, had to seek for asylum as well, as their business in Russia was destroyed in few seconds. The head of Bank of Moscow Mr Borodin had to hide himself in London as well as he suddenly became wanted by the Russian authorities for approving a $460 million loan that the police say ended up in the personal accounts of Ms. Baturina (I was not joking about London!).
So, recently Bank of Moscow was told to be about to collapse. That time President of largest state-owned bank VTB Andrei Kostin said that the possible collapse of the Bank of Moscow for the Russian financial sector by its value would be comparable to the collapse of the bankrupt in 2008, the investment bank Lehman Brothers to the global financial system.
As it always happens in Russia, suddenly VTB bank decided to buy Bank of Moscow and, right after that, Russian regulators provided a bailout package $14.15 billion to Bank of Moscow. What a great deal!
So, let us return to the main question. The question of a simple self-employed paying tax to the government, making her tiny savings, earning her penny by reporting about all those deals, politicking, billion kickbacks and glorious real estate projects!
What am I going to do now? Which bank should I chose now? Government VTB or Sberbank which will never collapse, they say? Who will ensure me that Mr Kostin (VTB head) or Mr Gref (Sperbank head), or, let it be, our ruling duo (Putin vs Medvedev), will not suddenly become a bitterest enemy of Russian nation (the next presidential elections are coming in 2012) and will note vanish somewhere in London, or, for example, Libya?
For an ordinary citizen, Russia is too taught to believe in anything and even more tough to plan the future.
