Boris Abramovich Berezovsky (russian: link=no, Борис Абрамович Березовский; 23 January 1946 – 23 March 2013), also known as Platon Elenin,
was a Russian
business oligarch
A business oligarch is generally a business magnate who controls sufficient resources to influence national politics. A business leader can be considered an oligarch if the following conditions are satisfied:
# uses monopolistic tactics to domina ...
, government official, engineer and mathematician and a member of the
Russian Academy of Sciences.
Berezovsky made his fortune in Russia in the 1990s, when the country implemented
privatization of state property.
He profited from gaining control over assets, including the country's main television channel,
Channel One. In 1997,
''Forbes'' estimated Berezovsky's wealth at US$3 billion. Berezovsky helped fund
Unity, the political party that would form
Vladimir Putin's first parliamentary base, and was elected to the
Duma on Putin's slate in the
1999 Russian legislative election
Legislative election were held in Russia on 19 December 1999 to elect the 450 seats in the State Duma, the lower house of the Federal Assembly.Dieter Nohlen & Philip Stöver (2010) ''Elections in Europe: A data handbook'', p1642 Like in the p ...
. However, following the
Russian presidential election in March 2000, Berezovsky went into opposition and resigned from the Duma. Berezovsky would remain a vocal critic of Putin for the rest of his life.
In late 2000, after the Russian Deputy Prosecutor General demanded that Berezovsky appear for questioning, he did not return from abroad and moved to the
UK, which granted him
political asylum in 2003. After he moved to Britain, the Russian government took over his television assets,
[ and he divested from other Russian holdings. In Russia, Berezovsky was later convicted ''in absentia'' of fraud and embezzlement. The first charges had been brought during Primakov's government in 1999.] Despite an Interpol Red Notice for Berezovsky's arrest, Russia repeatedly failed to obtain the extradition of Berezovsky from Britain; the situation became a major point of diplomatic tension between the two countries.
In 2012, Berezovsky lost a London High Court case he brought over the ownership of the major oil producer Sibneft, against Roman Abramovich, in which he sought over £3 billion in damages. The court concluded that Berezovsky had never been a co-owner of Sibneft.
Berezovsky was found dead in his home, Titness Park, at Sunninghill, near Ascot in Berkshire
Berkshire ( ; in the 17th century sometimes spelt phonetically as Barkeshire; abbreviated Berks.) is a historic county in South East England. One of the home counties, Berkshire was recognised by Queen Elizabeth II as the Royal County of Berk ...
, on 23 March 2013.[ A post-mortem examination found that his death was consistent with hanging and that there were no signs of a violent struggle.] However, the coroner at the inquest into Berezovsky's death later recorded an open verdict.[
]
Early life, scientific research and engineering experience
Boris Abramovich Berezovsky was born in 1946, in Moscow, to Abram Markovich Berezovsky (1911–1979), a Jewish civil engineer in construction works, and his wife, Anna Aleksandrovna Gelman (22 November 1923 – 3 September 2013). He studied applied mathematics, receiving his doctorate in 1983. After graduating from the Moscow Forestry Engineering Institute in 1968, Berezovsky worked as an engineer from 1969 till 1987, serving as assistant research officer, research officer and finally the head of a department in the Institute of Control Sciences of the USSR Academy of Sciences. Berezovsky conducted research on optimization and control theory, publishing 16 books and articles between 1975 and 1989.
Political and business career in Russia
Accumulation of wealth
In 1989, Berezovsky took advantage of the opportunities presented by perestroika
''Perestroika'' (; russian: links=no, перестройка, p=pʲɪrʲɪˈstrojkə, a=ru-perestroika.ogg) was a political movement for reform within the Communist Party of the Soviet Union (CPSU) during the late 1980s widely associated wit ...
to found LogoVAZ with Badri Patarkatsishvili and senior managers from Russian automobile manufacturer AvtoVAZ. LogoVAZ developed software for AvtoVAZ, sold Soviet-made cars and serviced foreign cars. The dealership profited from hyperinflation by taking cars on consignment and paying the producer at a later date when the money lost much of its value.
One of Berezovsky's early endeavors was All-Russia Automobile Alliance (AVVA), a venture fund he formed in 1993 with Alexander Voloshin (Boris Yeltsin's future Chief of Staff) and AvtoVAZ Chairman Vladimir Kadannikov. Berezovsky controlled about 30% of the company, which raised nearly US$50 million from small investors through a bonded loan to build a plant producing a "people's car". The project did not collect sufficient funds for the plant and the funds were instead invested into AvtoVAZ production, while the debt to investors was swapped for equity. By 2000, AVVA held about one-third of AvtoVAZ.
In 1994, Berezovsky was the target of a car bombing incident, but survived the assassination attempt, in which his driver was killed and he himself was injured. Alexander Litvinenko led the FSB investigation into the incident and linked the crime to the resistance of the Soviet-era AvtoVaz management to Berezovsky's growing influence in the Russian automobile market.
Berezovsky's involvement in the Russian media began in December 1994, when he gained control over ORT Television (see Channel One (Russia)
Channel One ( rus, Первый канал, r=Pervyy kanal, p=ˈpʲervɨj kɐˈnal, t=First Channel) is a Russian state-controlled television channel. It is the first television channel to broadcast in the Russian Federation. Its headquarters ...
) to replace the failing Soviet Channel 1. He appointed the popular anchorman and producer Vladislav Listyev as CEO of ORT. Three months later Listyev was assassinated amid a fierce struggle for control of advertising sales. Berezovsky was questioned in the police investigation, among many others, but the killers were never found.
Under Berezovsky's stewardship, ORT became a major asset of the reformist camp as they prepared to face Communists and nationalists in the upcoming presidential elections.
From 1995 to 1997, through the controversial loans-for-shares
Beginning in 1995, Boris Yeltsin's government began privatizing state-owned shares in companies through a loans for shares scheme. The scheme helped with "fundraising" for Yeltsin's 1996 reelection campaign and restructuring freshly-sold compan ...
privatisation
Privatization (also privatisation in British English) can mean several different things, most commonly referring to moving something from the public sector into the private sector. It is also sometimes used as a synonym for deregulation when ...
auctions, Berezovsky and Patarkatsishvili assisted Roman Abramovich in acquiring control of Sibneft, the sixth-largest Russian oil company, which constituted the bulk of his wealth. In an article in '' The Washington Post'' in 2000, Berezovsky revealed that financier George Soros declined an invitation to participate in the acquisition.
In 1995, he played a key role in a management reshuffle at Aeroflot
PJSC AeroflotRussian Airlines (russian: ПАО "Аэрофло́т — Росси́йские авиали́нии", ), commonly known as Aeroflot ( or ; russian: Аэрофлот, , ), is the flag carrier and the largest airline of Russia. The ...
and participated in its corporatization,[ with his close associate Nikolai Glushkov becoming Aeroflot's CFO. In January 1998, it was announced that Sibneft would merge with ]Mikhail Khodorkovsky
Mikhail Borisovich Khodorkovsky (russian: link=no, Михаил Борисович Ходорковский, ; born 26 June 1963), sometimes known by his initials MBK, is an exiled Russian businessman and opposition activist, now residing in L ...
's Yukos to create the third-largest oil company in the world. The merger was abandoned five months later amid falling oil prices.
Role in Yeltsin's reelection in 1996
Berezovsky entered the Kremlin's inner circle in 1993 through arranging for the publication of Yeltsin's memoirs and befriended Valentin Yumashev
Valentin Borisovich Yumashev (russian: link=no, Валентин Борисович Юмашев; born 15 December 1957) is a Russian journalist, politician and businessman-developer, who is the son-in-law of former President Boris Yeltsin and ...
, the President's ghost-writer.
In January 1996, at the World Economic Forum at Davos
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Davos (, ; or ; rm, ; archaic it, Tavate) is an Alpine resort town and a municipality in the Prättigau/Davos R ...
, Berezovsky liaised with fellow oligarchs to form an alliance – which later became known as the "Davos Pact" – to bankroll Boris Yeltsin's campaign in the upcoming presidential elections. On his return to Moscow, Berezovsky met and befriended Tatyana Dyachenko, Yeltsin's daughter, According to a later profile by '' The Guardian'', "Berezovsky masterminded the 1996 re-election of Boris Yeltsin... He and his billionaire friends coughed up £140 million for Yeltsin's campaign".
In the summer of 1996, Berezovsky had emerged as a key advisor to Yeltsin, allied with Anatoly Chubais, opposing a group of hardliners led by General Alexander Korzhakov. One night in June, in the drawing room of Club Logovaz, Berezovsky, Chubais and others plotted the ouster of Korzhakov and other hardliners. On 20 June 1996, Yeltsin fired Korzhakov and two other hawks, leaving the reformers' team in full control of the Kremlin. Firing them was controversial though, as Korzhakov a few days before caught two of Yeltsin's campaign organizers carrying US$500,000 cash without invoices out of the presidential administration building.
On 16 June 1996, Yeltsin came first in the first round of elections after forging a tactical alliance with Gen. Alexander Lebed
Lieutenant General Alexander Ivanovich Lebed (russian: Алекса́ндр Ива́нович Ле́бедь, link=no; 20 April 1950 – 28 April 2002) was a Soviet and Russian military officer and politician who held senior positions in the Ai ...
, who finished third. On 3 July, in the runoff vote, he beat the Communist Gennady Zyuganov. His victory was due largely to the support of the TV networks controlled by Gusinsky and Berezovsky (NTV and ORT) and the money from the business elite. '' The New York Times'' called Berezovsky the "public spokesman and chief lobbyist for this new elite, which moved from the shadows to respectability in a few short years".
Role in Chechen conflict
On 17 October 1996, Yeltsin dismissed General Alexander Lebed
Lieutenant General Alexander Ivanovich Lebed (russian: Алекса́ндр Ива́нович Ле́бедь, link=no; 20 April 1950 – 28 April 2002) was a Soviet and Russian military officer and politician who held senior positions in the Ai ...
from the position of National Security Advisor amid allegations that he was plotting a coup and secretly mustering a private army. Lebed promptly accused Berezovsky and Gusinsky of engineering his ouster, and formed a coalition with the disgraced General Alexander Korzhakov. The dismissal of Lebed, the architect of the Khasavyurt pe