[Patriotism, according to Samuel Johnson, is the last refuge of the scoundrel, and
there are few more patriotic people than New Russians, who also said 'Example is
more efficacious than precept', something clearly true of the lessons Putin has
learned about democracy and the rule of law from his predecessor. Mark].

Jamestown Foundation Monitor
February 2, 2001

KHAPSIROKOV'S APPOINTMENT: ANOTHER SIGN OF PUTIN'S LINGERING "FAMILY" TIES?
Nazir Khapsirokov, the former "property manager" for the Prosecutor
General's Office, has been named a deputy head of the Kremlin
administration. While his exact duties have not yet been made public,
Khapsirokov will be one of five deputies to Kremlin chief of staff
Aleksandr Voloshin. The new deputy presidential administration chief is
both a shadowy figure and a controversial one. He was removed from the
Prosecutor General's Office last summer. According to Kommersant, the
pretext for this was the suspicion that he had received a US$1 million
bribe in return for quashing a corruption investigation of former Deputy
Prime Minister Vladimir Petrov. Afterwards, Khapsirokov went to work at
Mezhprombank, an institution said to be closely linked to the Kremlin.
Former Prosecutor General Yury Skuratov and former Deputy Prosecutor
General Mikhail Katyshev have both said that Khapsirokov wielded immense
behind-the-scenes power while serving as property manager for the
prosecutor's office. They also said he maintained "good relations" with
President Vladimir Putin and was "friends" with Boris Berezovsky, the
once-powerful oligarch who is now in self-imposed exile, and Pavel Borodin,
the former Kremlin property manager and current Russia-Belarus union state
secretary who was arrested in New York last month on a Swiss warrant.
Khapsirokov is rumored to have played a role in organizing the discrediting
of Skuratov, who had launched both the Mabetex case, involving Borodin, and
the Aeroflot case, involving Berezovsky, among other high-profile
corruption probes. In early 1999, then President Boris Yeltsin suspended
Skuratov after a tape allegedly showing him in bed with two call girls was
shown on state television. In a profile of Khapsirokov published last year,
the weekly newspaper Sobesednik claimed that in 1999 Berezovsky had showed
up at the Prosecutor General's Office with an "armful" of roses for
Khapsirokov the day on which the charges against the tycoon connected to
the Aeroflot case were dropped. Coincidentally, Russian media reported
yesterday that Berezovsky is about to be charged once again in connection
with that case.

Khapsirokov is also said to have played a key role in getting Vladimir
Ustinov appointed to the post of prosecutor general last year. That
appointment caused something of a scandal after various media reported that
Voloshin, possibly in conjunction with Berezovsky, had overruled Putin's
choice for prosecutor general, Dmitry Kozak, and essentially forced Putin
to appoint Ustinov (see the Monitor, May 18, 2000). The newspaper Vedomosti
reported today that Ustinov has since started to annoy Voloshin and members
of his team, who are unhappy with his "excessive zeal" in prosecuting
Vladimir Gusinsky's Media-Most and, more generally, his "excessive
independence." Thus Khapsirokov may have been appointed to serve as a
warning to and a check on Ustinov (Vedomosti, Kommersant, Segodnya,
February 2; Russian agencies, February 1; Sobesednik, December 21, 2000).

It is less clear why the Russian president would sign off on hiring someone
like Khapsirokov as a deputy chief of staff, given the latter's
controversial reputation and purported close links with the Yeltsin-era
inner circle, from which Putin is supposedly trying to distance himself.
Ever since Putin succeeded Boris Yeltsin, some observers have speculated
that members of the Yeltsin-era "Family" had "kompromat" (compromising
material) on the new head of state, and that this accounted for Putin's
reported acquiescence in being overruled in his choice of prosecutor
general, among other things. The Gazeta.ru website, however, dismissed this
explanation yesterday, arguing that Khapsirokov was appointed precisely
because of his questionable reputation, on the theory that a "dirty" enemy
who has received a conditional "royal pardon" is "a more valuable cadre
resource than a relatively clean friend who has initiative." Putin, the
website said, "prefers compromised--and thus deeply devoted--colleagues"
(Gazeta.ru, February 1). It is worth noting here that, contrary to the
expectations of the many observers who have been predicting an imminent
purge of Yeltsin-era officials, including Voloshin, Putin this week issued
a decree effectively subordinating his seven representatives in the federal
districts to the Kremlin chief of staff (see the Monitor, February 1). It
should also be noted that Voloshin himself has a controversial reputation,
having been closely connected to Boris Berezovsky, along with several
alleged pyramid schemes.

All of this is further evidence that Putin, despite his vows to establish a
"dictatorship of the law" and a "strict presidential vertical of power,"
may increasingly be resorting to his predecessor Boris Yeltsin's style of
rule, which was characterized by court intrigue, along with feudalistic
deal-cutting and power-sharing. The most tangible recent sign of this was
last month's passage in the State Duma of a Kremlin-backed bill allowing
sixty-nine of Russia's eighty-nine incumbent regional leaders to seek third
or even fourth terms in office (see the Monitor, January 30). Noting that
Yeltsin once urged the country's regions to take as much sovereignty as
they could swallow, Vlast, Kommersant's weekly magazine, said this week
that Putin's Kremlin, facing a deteriorating Russian economic situation,
has been "forced to revert to Yeltsin's principles in its regional policy"
(Vlast, January 30).


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