#7 - JRL 7277
Nezavisimaya Gazeta
August 5, 2003
YASIN: THE YUKOS CASE IS DANGEROUS
An interview with Yevgeny Yasin
Author: Yevgeny Mazin
[from WPS Monitoring Agency, www.wps.ru/e_index.html]
YEVGENY YASIN, HEAD OF THE SUPREME SCHOOL OF ECONOMICS, WAS PRESENT AT THE BIRTH OF ECONOMIC REFORMS IN RUSSIA. YASIN NO LONGER HOLDS ANY STATE OFFICE, BUT REMAINS A PROMINENT ECONOMIST COMMANDING GENERAL RESPECT. HIS OPINIONS AND EVALUATIONS MAY BE CHALLENGED, BUT ARE NEVER IGNORED.
Question: What is happening in the national economy these days?
Yevgeny Yasin: The latest events, especially the YUKOS case, are extremely dangerous. I take it as a sign of the civil treaty and accord made in 2000 being disrupted. All this undermines the trust that is essential for economic development on the basis of private enterprise. And that is something that is quite important for the development of the national economy.
Take the pretext itself. The incident over which Lebedev was arrested concerns terms of an investment tender in 1994. Menatep was supposed to invest some substantial sums in restructuring the Apatit company, but never bothered to do so. It should be mentioned here that according to the law effective at the time, an enterprise became property of new owners as soon as certain sums, quite meager sums, were paid. Even before the investment, that is. The legislation did not stipulate any sanctions or guarantees for the investments.
A presidential decree to the effect that ownership transfer takes place after the investments appeared only in 1997. Eventually, the State Property Ministry abandoned the whole idea of investment tenders, because the state was not in a position to monitor fufillment of obligations. Neither was there a law making owners honor their promises and obligations. There were 261 investment tenders in 1994, and only fourteen in 1997.
Question: Isn't it natural for a state to try to regain what it lost at a time when it was weak?
Yevgeny Yasin: Our problem is that there are no rules in relations between business and government. In fact, some rules are specified by the Constitution and the law; but there is also the Russian tradition of feudalism. Once you are elevated into the corridors of power, you are supposed to become wealthy and kick out all your rivals in order to remain where you are forever. This is something typical of Latin America, you know.
In my view, this is a situation where there is encroachment regarding redistribution and there is a conflict between the bureaucracy and major corporations. In the absence of rules, business and government are bound to clash every now and then. Rules are needed. If you ask me, this is a clear message to Russia that it needs a true division of powers; that administrative resources should only be used within the framework of the law. The use of money should become more civilized as well. We need a proper law on lobbying and other legislation restricting oligarchs' ability to bribe civil servants and lawmakers.
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