

Moscow and Russia

Luzhkov v Kremlin

Behind a small dispute over housing in Moscow is a bigger story

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Roman Abramovitch seems safe in London, not in a hideout, but then he can afford bodyguards and I imagine he's careful to avoid both ricin-tipped umbrellas and radioactive thallium in restaurants. The spider in the Kremlin towers still watches everything that goes on. No change at all from when Joseph Visarionovitch set it all up. Your comments to the Economist are quite certainly noted in a Moscow file for when the spider needs to make up its quota. Only three arrests needed per policeman! Honestly! Quite a change from Yezhov. Anyway, if you can make it to Australia, I'll use my (sadly limited) good offices on your behalf. Australia needs honest and intelligent migrants who are not afraid to speak their mind. In Russia, though, a degree of prudence is indicated. The spider was so glutted it had enough food for decades. Nothing in the current system will suffice to stop another rampage when it gets hungry, however. Indeed, it might even be being prodded right now.


Blaked, it would be more accurate to say that Russia has land taxes, but since most land is still owned by the public sector (especially municipalities, including notoriously Moscow) most people do not pay any land taxes. In the case of Moscow, Luzhkov has been loathe to privatize land, and held out for exemptions from national land legislation that tried to encourage land under privatized buildings to be privatized. As monopolist land-lord, the city administration has plenty of scope to control the entire real-estate market. Until that monopoly is broken, whoever might take over from Luzhkov can be counted on to enrich his/her spouse to the same degree!



I hope your offer is still on and I can escape and you'll find me a good hide-out in Australia. I rely on you. Fair dinkum mate. Hope you are a real dinkum bloke.


Using eminent domain against regular people in order to line the pockets of the wealthy is always bad news, but it is not limited to Luzhkov's Moscow. In Kelo vs. City of New London, the US Supreme Court made the too-utilitarian argument that a city could 'doze private homes and put up a new district if the tax revenues were higher.
Russia is not to that stage yet, and in some ways development is more restricted (or needs a 'visible hand' in order to occur), because RUSSIA DOESN'T HAVE TAXES ON REAL ESTATE. This causes innumerable problems. For example, houses in the Moscow Region are usually on dirt roads. Because municipalities collect money from income taxes from their registered residents and most houses in Moscow Region are owned by people registered in the politically separate City of Moscow, their income taxes go to the mayor of Moscow's coffers and suburban streets remain unpaved. In addition, if someone owns a house on a river in Moscow, it has to be zoned out of existence - you can't just re-assess his property's value and wait for him to give up. Real estate taxes would take the pressure off the City of Moscow by allowing towns in the region (which are too small and unsophisticated to chase people down for not paying income taxes) to spend money on roads, schools, and honest police and municipal employees. Currently much of the land immediately outside the city is divided into 600 m2 lots where old people have their dachas – small vacation homes without plumbing or sewage. These people rarely sell and rarely upgrade their homes.


Stas Vartikyan

"Didomyk pulling strange numbers and opinions out of your hat..."

Which "strange numbers" ?
Unlike you, I have my numbers and opinion in my head, not in my HAT !
Try and get a new HAT, that may help !

Stas Vartikyan

To Didomyk:

You of all people should not be accusing me of changing the subject. Whenever a Russian commentator criticiсes Ukraine you have an emotional breakdown and start blaming Russia for all your woes while totally ignoring the subject of discussion.

Secondly, I simply corrected the figure you've presented and added the scandal with Resin's expensive watch and commented on the situation surrounding recent complaint filed by omon (russia's special police forces).

P.S. Didomyk pulling strange numbers and opinions out of your hat instead of providing facts and fact based opinions does not help adress the subject of this article.


While Kornilow speaks of Moscow's shopping malls and "modern" highways as Luzhkow's "achievements" he says nothing about law violations, bribery and prostitution.

Here is part of the story as described by members of Moscow's OMON:
"soldiers of the Second Battalion, whose main task is to break up street protests, sent the president of Russia Dmitry Medvedev and the General Prosecutor's incriminating letters of complaint to the worst violations by the authorities and the unbearable working conditions."

"Moscow OMON collects money from the prostitutes and the roof of their points in the square at the three stations, the publication of the story leads law enforcement officers...."satisfied that the girl arrived at the base to entertain officers in their offices. In all Strogino apartment "point" of prostitutes under the Moscow riot police .... "

Read more about Moscow's OMON: http://last24.info/read/2010/02/01/2/84


Luzhkov is at a disadvantage vs the Kremlin for several reasons even though he seems to have experience in falsifying elections. It makes one wonder what stake does Luzhkov have in terms of content of RIA Novosti, a state owned direct descendent of the Soviet Information Bureau, established by "Uncle" Stalin during WWII. It now beams its messages into homes in Western Europe and North America in a manner that make it difficult, if not impossible, for uninformed people to identify it as Kremlin TV. The RT News is a technically upscale channel but with rather primitive content. Naturally, with news about Putin and Medvedev aired quite often, Luzhkov doesn't get his share of publicity. And the American CNN, with a typical American viewpoint, still dominates English language TV in Moscow and in major cities. It gives Luzhkov little, if any, chance to shine promoting his accomlishments, whatever they may be.


Yet another prediction of Luzhkov's demise. This is really funny! There have been many such predictions with details such as everyone in city hall already has their suitcase packed... its all BS. Luzhkov is too much of a political heavyweight. He is not all the mayor of Moscow (Which has the second largest city budget in the world, and is larger than Ukraine's federal budget) he is the number three ranked official in the United Russia party after Putin and Gryzlov. Not only this, but Putin owes much to Luzhkov for support early on, such as the union of his party - Fatherland, with Putin's Unity to form the strongest parliamentary fore in 1999. It was also Luzhkov's move (in an alliance with Primakov) against Yeltsin in 1999 that forced him to begin looking for a successor which eventually brought Putin to power.

I will have to disagree with you. While there is certainly lots of corruption in Moscow, Luzhkov has done a lot for the city and its residents. Moscow residents surely remember how dirty the city was in the first half of the nineties. Luzkhov then instituted the chisty dvorik program (clean yard). There is the Luzhkov Nadbavky (additional payments) to retirees' pension's, which is greatly appreciated by them. The roads in Moscow are light years better than anywhere else in the country. While his wife definitely has used her position to enrich herself, they have given a lot to the city. Glitzy shopping malls and business centers can be found literally all over the city. Another difference is that she hasn't simply taken over preexisting factories and raided them and sold of their capital equipment like a lot of the oligarchs. She owns construction companies that actually construct buildings for the city and its residents. I prefer Luzhkov to any of the other cronies who would like to take his place. There is so much criticism of him simply because there are forces who want a piece of the Moscow pie which they currently aren't getting. His replacement would only bring a certain chaos to the city as the local elites fight for influence in the new administration. Luzhkov does a good job in balancing all of these interests.

As for Rechnik, the Economist is definitely wrong to say that: "They are typical representatives of the burgeoning consumer class that has done well from the past decade’s oil-fuelled growth" This statement is absolutely bogus. Million dollar homes are not built by typical representatives of the burgeoning consumer class. They knowingly paid bribes to corrupt local officials to get permission to build huge houses in protected nature zones. While they may not be oligarchs, they surely are not law abiding middle class citizens. Hopefully Luzhkov keeps his word and the richer and more lavish Fantasy Island is next on the chopping block. People need to realize that they can't bribe their way out of everything.


I believe that Lushkov’s days are numbered, however he is a tough cookie and it’s not so easy to get rid of him. You know the saying ‘money talks and ... walks’. The Kremlin is not happy with his activities but the guy is smart and managed to graft many big shots in the upper crust of Russian society. Majority of people in Moscow want him to go. However, he understands that if he goes he might face a trial. Along with him, he will drag many of his cronies into the abyss. The first one to get there will be his wife Baturina. According to Luzhkov he made in 2008 6 214 200Rbs, he owns a 62sq. m house, an apartment 150 sq. m and four plots of land with total area 1 137 133 sq. m and drives GAZ 69E 1964 model (Russian jeep). Have a look at different models:

According to Forbes magazine Luzhkov’s wife Baturina is the only Russian woman dollar billionaire with 4.2 billion dollars (2008). However, good guy Luzhkov dissociates himself from her fortune.
Last year Nemvtsov a former vice-premier in Eltsin’s government published a book on Luzhkov’s family and his dealings. The facts brought of course outraged the Family and he filed a lawsuit against Nemtsov to protect his honor, dignity and professional reputation. Of course, no surprise, Luzhkov won the case. He never lost a single one YET. Those who know Russian can read Nemtsov’s book,

http://www.kasparov.ru/material.php?id=4AA60372B165E It’s in Russian.

I would call situation with Rechnik as sad, ridiculous and amusing. People owned those plots of land since mid 50s last century and those were given to the people free of charge as lawn-and-garden plots of land. Of course, people built houses there. Now the Moscow government says that all the structures are built illegally since Moscow authorities never gave Ok on building those, thus all illegal structures must be knocked down. Bailiffs came with court ruling and started knocking them down. Already several houses being pulled down. However, the process is postponed since President is involved in the matter. Have a look at the videos,


I just wonder how they can stop this process now. Not very far from Rechnik there’s another settlement “Ostrov Fantazii” (Island of Fantasy). According to Luzhkov all luxury houses and villas are built illegally too and will be next to knock down. I wonder if Luzhkov has the guts to knock them down. Have a look at the Island of Fantasy


Rechnik people filed a 100 billion rubles lawsuit against Luzhkov. In any case, Luzhkov got himself in a trap, hopefully final trap.


When Luzhkov's "Fatherland All Russia" party joined forces with Putin'a Unity Party to establish United Russia it soon became known as the Party of Power. Copying from a rich experience of the autocratic Communist party Putin and his friends spared no effort to ensure that all regional governors and all ambitious bureaucrats appreciate what the Party of Power can do for them. Lately, however, with Luzhkov's growing appetite for control of real estate both in Moscow and abroad, his relations with Putin's other "alter egos" in the Kremlin suffered some setbacks. But then Luzhkov's days are numbered while Putin plans to return to Kremlin's presidential suites.


Stas Vartikyan

You have already forgotten that the subject matter on this forum is LUZHKOV V KREMLIN. Its not about your future North Pole expedition, not about Ghana, not about the Panama canal. Stick to the subject.

KREMLIN, as the seat of Russia's autocratic power over centuries, deserves a more detailed analysis and assessment than that provided in the Economist's rather brief article. Why don't you make a an honest start ? What can you tell us about the Kremlin ?

Luzhkov's (and his wife's) worldwide businesses, as well as his political machinations hand in hand with Putin, including subversive propaganda sponsored and paid for by his party faithful, also deserve a deep assessment. Why don't you make an honest start ?

All you provided so far is trush.

Stas Vartikyan

To Danylo:

You should read the articles that came out the day after. The news paper is being suid by Moscow's cops. Apparently the commanding officers had a little chat with the guys who signed the complaint and now they all deny ever writing anything of that sort, the fact that their signatures are on the letter will probably not stand up as evidence in court or the original letter will be "accidently" lost or something.

Hey guys do you reckon, when Russian cops or politicians are taking photos instead of saying "cheese" do they say "corruption" and then a huge smile bursts out across their face?

Stas Vartikyan

Didomyk, making tens of millions is what Baturina does on a single construcrtion project, she is making a hell of a lot more money then that. Prior to the crisis Forbes ranked her a multi billionaire and thats the official part. Moscow's minister of construction was recently caught wearing a watch that costs 1 million dollars, he said his daughter gave it to him...

P.S. Didomyk, have you had the chance to write a congratulations postcard to Bandera's family, yet? Bandera is finally the recognised hero for all of Ukraine to admire and aspire to.

Danylo Halytsky

And just to show what Freedom of Assembly, guaranteed under the Russian constitution, means in real life, one can watch the video with this story from Radio Liberty. Any Russian native on these boards can surely realize a wrong for a wrong. Even many Russian police have just had enough of the corruption, acute law-breaking and have protested.

"Just as a wave of demonstrations is sweeping Russia, an elite battalion of OMON riot police in Moscow has appealed to President Dmitry Medvedev, complaining of rampant abuse among police commanders.

The letter was published by the independent "Novoye vremya" magazine.

The officers complain that battalion commander Sergei Yevtikov has demanded that each officer arrest no less than three demonstrators at opposition rallies or face loss of bonuses and awards"

Read the full story here: http://www.rferl.org/content/Riot_Police_Complain_Of_Corruption_As_Demon...

Now, if there are actually humane and conscientious OMON officers who are willing to risk their lives and fight illegal activity from above, then there is still hope for Russia and the Russian people.

Danylo Halytsky

One research group which "advises" Medvedev has recommended that Russia commence a "startling agenda of long-term changes, including restoration of elections for governors, an end to censorship of the news media, Russian membership in NATO and dissolution of the Federal Security Service, successor to the Soviet-era K.G.B."
Here at the NYTimes http://www.nytimes.com/2010/02/04/world/europe/04russia.html?ref=europe

Would this only be possible. I doubt it. The oligarchs chased out of the country by Putin have been suitably replaced by K.G.B. cliques, Luzhkov, and others et al. Corruption remains, as does a growing xenophobic stew pushed by Vladimir Putin. For neigbour countries like Poland and Ukraine, they will never be fully secure until Russia faces up to its past and institutes a democracy based on the Rule of Law not the hand of the K.G.B.

Richard Pipes of Harvard always maintained that Russia/Soviet Union always seemed to require an "external threat" to keep an authoritarian regime in power. Pipes was and is a keen observer of Russia.

For Russia to actually join Europe and/or N.A.T.O. and have an equal voice in the West's decision making would banish the phantom external threat that does not have to exist. There are not going to be any more sieges of Moscow or Stalingrad. Obama asked for a "reset".

Russian corruption can thrive because Putin and company are postponing the inevitably necessary reforms on freedom of speech, press, and rule of law that are necessary for a developed society. I wish Medvedev would heed the advice of that advisory group to which I linked. However, Medvedev doesn't call the shots now does he? To paraphrase Winston Churchill the West cannot talk to Medvedev but needs Putin: "Never talk to the monkey when the organ grinder is in the room".

Is there anyone on these boards who actually would like to defend and praise the kleptocratic Autocrats Putin and Luzhkov on here? Gazprom for the time holds Russia afloat but as many have argued, Gazprom under Putin is just as inefficient and corrupt as it was under the oligarchs. Russia needs to reform and have the Police be on the payroll and defense of the people, not on the defense of the Luzhkovs and Putins. That one brave Russian policeman who came out openly to state what every one knew, that the Russian police is corrupt, has now been arrested as well. The gallows, sadly, have always been full in Russia. God willing, let us hope this changes in the near-future.


Russia increasingly resembles a brutal TV soap opera in which larger-than-life characters spin webs of intrigue and minor characters (e.g. real people) are disposed of at every turn of the plot for additional dramatic effect. Unlike real soaps, these characters play on and on and on regardless of their ratings. In the end, only the total collapse of the production company is likely to bring the whole interminable thing to a much-deserved end.


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