| The Kremlin shows no sign of relenting in its attack on
Mikhail
Khodorkovsky, Russia's richest man. Mr Khodorkovsky, who has been in jail
for over two weeks on tax and fraud charges, was this week denied bail
and
warned he could spend up to two years in pre-trial detention.
Meanwhile, the deputy public prosecutor delivered a grim message to
the
rest of the Russian business community. "Let those who are still
at liberty
think hard about what they are doing," said Vladimir Kolesnikov.
There is nothing wrong with the principle of investigating Mr Khodorkovsky.
Like most very wealthy Russians, he founded his fortune on murky
privatisations and may well have a case to answer. It is also acceptable
for the authorities to target one man, if they think that his alleged
offences are particularly serious and if the evidence against him is
especially strong. Prosecutors everywhere try to pick important cases
they
think they can win.
But Vladimir Putin, the Russian president, is also making a political
example of Mr Khodorkovsky, whom he sees as a rival. This is an abuse
of
power. It is also a sign of the authoritarianism spreading across Russia.
Mr Putin may not be too concerned that his actions raise profound questions
about his commitment to the rule of law, human rights and democracy. But
he
should remember that the assault on Mr Khodorkovsky could undermine
something he does hold dear - Russia's economic development.
Aside from the direct damage to Yukos, Mr Khodorkovsky's company, the
biggest economic impact of the investigation could be on the approach
of
state officials to business in general. Entrepreneurs across Russia fear
bureaucrats could now launch probes of their own against other companies,
big and small. Russian business is bound by so much red tape and corruption
that it would not take any dramatic campaigns to increase the pressure
on
companies.
Mr Putin may not want business squeezed in this way. But he may be
powerless to stop the administrative machine. Among his strongest backers
are past and present officials from the security services who feel they
lost out in the economic free-for-all of the 1990s and now want to claw
back some advantage. Also, attacking business is popular. Mr Putin is
unlikely to apply the brakes before next month's parliamentary elections
and the presidential poll next spring.
A resurgent bureaucracy may not hurt big foreign investors, notably
oil
companies, which are used to dealing with authoritarian governments.
Leading Russian groups will doubtless survive, if only by increasing bribes.
The real threat hangs over companies that are too small to protect
themselves. Without them, Russia cannot develop its full potential. It
will
remain, as it is today, a country with rich natural resources but a poor
people. Mr Putin's vision of transforming his country will wither and
die.
See also:
YUKOS
case
| 