Russia, Oppression on Big Corporations Sparks Power Struggle.

A series of oppression on big corporations happening one after another in Russia are sparking power struggles in the political circles.

As the Kremlin, having a group of figures close to Russian President Vladimir Putin as the pivot, arrests some of the top figures of conglomerates before the general election in December and presidential election in early next year, Russian oligarchy and a group of figures who were close to the former President Boris Yeltsin are resisting it.

“If President Putin is re-elected, he will soon commence a large scale suppression on financial circles under the name of reform,” president of Logovas Group, a major figure of the Russian oligarchy, said Wednesday. “We must find an alternative, not Putin.” He was the most powerful figure while Yelsin was president, but he now lives in exile due to conflicts with the Putin governemt.”

Russian Prime Minister Mikhail Kasyanov who has also been having discord with Kremlin since he became a potential competitor for Putin directly criticized Kremlin while visiting local areas Tuesday, saying, “Summoning and arresting top figures of conglomerates is an excessive measure”.

The Union of Industrialists and Entrepreneurs, which is the counterpart of the Federation of Korean Industries also decided to express their strong protest to Kremlin.

Kremlin is, however, not giving in to them at all. Police decided to fully investigate Ukos and other oil conglomerates under the charge of tax evasion. The board of Audit and Inspection has also begun its investigation on Roman Avramovitsi (majority shareholder of oil corporation Sibnetiv), the No. 2 in the financial circles.

Avramovitsi is the one who grappled people attention for buying Chelsea FC, an England`s top soccer club. Kremlin will try to attempt to completely cut off money and political influence from the past regime`s political circles for the coming two major elections. Kremlin believes the old political circle is a hurdle for reform and they only represent for the sake of a few conglomerates rather than the nation`s interest. Some say that Putin ignited the power struggle between circles close to Putin and past regime circles by declaring that he will not run for the third election.

Ki-Hyun Kim kimkihy@donga.com