#15
Argumenty i Fakty
No. 24
June 12, 2002
SERGEI STEPASHIN ON THE STATE OF THE NATION
An interview with head of the State Auditing Commission Sergei Stepashin
Author: Nikolai Zyatkov, Andrei Uglanov
[from WPS Monitoring Agency, www.wps.ru/e_index.html]
RUSSIA HAS THE MOST COMPLICATED, INTRICATE, AND DIFFICULT TAXATION SYSTEM IN THE WORLD. AUDITING COMMISSION CHIEF SERGEI STEPASHIN COMMENTS ON THIS AND OTHER ASPECTS OF ECONOMIC REFORMS. HE LISTS THE PRIORITIES AND PROBLEM AREAS NOW FACING THE RUSSIAN GOVERNMENT.
Question: As a person with some power, do you have a sense that our nation's position in the world is changing?
Sergei Stepashin: Undoubtedly. The euphoria of the West about the break-up of the USSR, a ruined superpower, has ceased. When a battalion of Russian paratroops entered Prishtina in Kosovo, the West realized that Russia was still strong enough to protect itself. So it would be untrue to say that Russia is a weak country.
We stabilized the situation in Tajikistan and did not allow the Taliban to gain control of it. It is also very important that we have now very good relations with China and, at the same time, we have become closer to NATO. Although it is still early to be optimistic.
Other countries have began to consider Russia as a state with which it is possible to do business. Recently, the State Auditing Commission accepted 45 countries, and a Russian representative will head the union of European controllers for the next three years. It is a response to those, who are trying to list Russia as a country which does not fight against corruption and money laundering.
There is a serious problem in Russia: low living standards of the majority of the Russian population. However, this primarily concerns the economy and efficiency of the government's work. Vladimir Putin isn't speaking of "breakthroughs" from the standpoint of a "great leap forward". Russia is able to be a substantial partner; moreover, we are also able to be significant rivals. Especially if we join the World Trade Organization. Russia's strong sectors of industry are not only metals - they also include aviation, outer space, and radio electronics. No matter what they say, Zhores Alferov received a Nobel Prize for invention of a mobile phone which is used all over the world now. We also forget about the Russian chemical industry, which is also fairly strong. Sixty percent of fertilizers used in Europe are produced in Russia. These are priorities which Russia can successfully develop to receive revenue from more than just oil and gas.
Question: On the one hand, we need to preserve and develop what we have. On the other hand, it is necessary to prevent the money from leaving Russia. Capital flight is also a great problem, and a reserve. We need to block the channels.
Stepashin: Yes, of course, it is necessary to fight against money laundering of revenues received from corruption, selling drugs, and so on. However, if we aim at completely blocking channels for taking money out of Russia, this will lead to the opposite result - the final money will be taken out of Russia. At present, Russia has the most complicated, intricate, and difficult taxation system in the world.
Secondly, and President Putin has spoken of this many times: it is necessary to agree how many monitors and auditors we need. In such troubled waters, one financial group often "takes out a contract" on another one.
The third issue concerning this point is that capital flight depends on political stability in Russia. Until 1999, there was a threat of political restoration of the old order. At present, the Duma is not in conflict with the executive branch, although some people do not like that.
Question: However, some money were taken out of Russia by criminal channels and now this capital is lifelessly stored in foreign banks. It will never come back - Russia lost this capital.
Stepashin: The State Audit Commission presents interests of the Russian state and currently we work with some western lawyers. We have already returned $1.5 million taken out of Russia by bandit Misyurin. At present, we work at other cases of "criminal money abroad".
Question: What possible sums of money are you speaking about?
Stepashin: Swiss media mentioned two figures, $500 and $300 million that belong to concrete people.
Question: You used to work for the Federal Security Service. The press writes that it is actively interfering with politics. They say some FSB officers dislike the prime minister, since he had been appointed under previous president Boris Yeltsin....
Stepashin: I think this rumor is invented. On the other hand, if FSB Director has concrete facts of violation of laws by any state official, he must report to the head of the state on this. But only if there are FACTS. It is his direct duty. Playing forfeits, attempts to redistribute positions are forbidden actions. Especially, if take into account that Vladimir Putin is not interested in this. It is impossible to frighten or surprise him with such information, or to exert any influence on him this way.
Of course, it is high time to carry out an administrative reform in Russia - I have said it many times. We can call ourselves a market economy country, we are ready for entering the World Trade Organization. Russian political institutions have formed - however, we still have a heaviest bureaucracy that is worse than Soviet bureaucracy. As is known, the less right an official has to directly influence economic decisions, the less corruption is.
Well, the last but not least. Russian prime minister has a salary less than $1,000 a month.... It is nonsense. Talks that the people will not understand if we pay him more are also nonsense. People think that ministers make money somewhere else.
Question: What is your salary?
Stepashin: It is the same as the salary of a first deputy prime minister, about 17,000 to 18,000. I also receive some additional money for secrecy and so on.
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