The Consolidation of the Russian Economy

As noted in my previous post, there is a consolidation of corruption in Russia that is paralleled by the consolidation of business into a handful of monopolies. The trend continues. The BBC reports that the head of Russneft quits and that this oil company will be sold. According to the BBC:

The head of Russian oil group Russneft has said he is quitting the firm and selling it to a Kremlin-friendly rival.

Mikhail Gutseriyev said "unprecedented persecution" from authorities had forced him to step down and sell up.

Aluminium tycoon Oleg Deripaska has now applied for regulatory approval to buy the group for an undisclosed amount.

The company is currently facing tax claims of around $1bn (£500m) and police charged Mr Gutseriyev with illegal business activities in May.

In an open letter in the Russneft company magazine, Mr Gutseriyev said there was "an attack on all fronts" against the firm from tax authorities, the prosecutor general's office and the interior ministry.

"They told me I could take the easy way out. I refused. Then to make me more ready to negotiate, my company came under unprecedented persecution," he added.

According to the BBC, Deripaska is widely seen as loyal to the Kremlin and has previously said that he would sell his aluminum assets to the state if he was asked. The coerced consolidation of Russneft under Deripaska's ownership will facilitate the state's nationalization at a later date: it is easier to nationalize one large company as opposed to several smaller corporations.