Oligarchy vs. Colony for Dummies

I keep hearing that Russia is [just another] oligarchy. The main argument is that there are [VERY] rich people in Russia. True, though compared to Elon Musk or Bill Gates they are beggars. But are they oligarchs in the proper sense of the word? I don’t think so. Maybe they were proxy rulers with limited authority. I’ll try to explain.

The term “oligarchy” implies that a country is ruled by a group of its richest people. Russia never corresponded to this definition in its modern history (I guess it would be safe to say, that it has never been a pure oligarchy). Obscenely rich people appeared in Russia in the 1990s. Some started as racketeers, some were the so-called “red directors.” These corrupted Soviet-time administrators jumped at an opportunity and turned privatization to their personal benefit, totally disregarding needs and hopes of their staff. Also, there was a group of the so-called “young democrats” (yes, here is the buzzword) mostly coming from Komsomol directly into loving hands of G. Soros and Western NGOs who polished their education. Some became businessmen, some politicians, some both. By the way, it is to this group that Chubais, Khodorkovsky and Nemtsov-bemoaned-by-the-West belong.

The first group, former street gangsters and robbers, hardly survived the 1990s. Those who are still alive are now retired and not necessarily rich. Some still run some small and quite legal companies. The second group did differently. Some actually acquitted themselves by building strong enterprises and taking those through the 1990s, 2000s and 2010s, some got cannibalized by representatives of the third group and Western multinationals. A fraction got jailed.

The third group is the most interesting and the most dangerous. It actually gave rise to what is now seen as the Russian oligarchy. I’ve mentioned most notorious representatives of its first generation that blazed the trail, but more followed. They lived and [eventually] died in the shadow of a semi-colonial system established under Yeltsin and now disbanded. Within this model governmental bodies, education (the Higher School of Economics is a Soros outlet), culture, etc. were entwined to create a more perfect union of traitors and colonizers. Virtually every area of state functioning was affected, and those richest people did steer it. Isn’t it an oligarchy then? Yes, of course. But not a Russian oligarchy. Russia was a semi-colony (I have reasons to believe that we managed to keep the military and secret services intact, though humiliated and impoverished). It was an affiliate of the united forces of Western oligarchy ran by local proxies. All the cash these puppets mercilessly raked in went abroad to accounts in foreign banks. It’s not what a local financial and business “elite” is supposed to do.

When Putin assumed office, he expressly told “oligarchs” to distance themselves from the power. Some heeded his wise and kind advice, some didn’t. Khodorkovsky had to learn the lesson the hard way, though in hindsight, I think he should have been shot down to death twice instead of spending some time in jail. Also, back in 2002 Putin told oligarchs that keeping money outside Russia is a bad idea, because they will have trouble getting this money back if the West decides to take it from them (the direct quote would be much more colorful, but I’m not in the mood to do a fancy translation).

And as we now see, Putin was 100% right, Western oligarchies robbed their former servants who were not oligarchs, but just silly satraps.


Maria Kondorskaya

Linguist, [very] professional Content writer, Russian (and even Soviet), Muscovite, patriot, internationalist. Passive aggressive, vivacious pessimist, optimist with a morbid sense of humor. Made in the USSR in 1982.

18 thoughts on “Oligarchy vs. Colony for Dummies”

  1. This is precisely the story I tell. I believe I learned it from Russian expert Professor Stephen F Cohen, who died recently. In my telling, the oligarchs that we know of are not part of government nor dare to be, and are not fans of Putin, rather enemies. In the case of Western sanctions, the US did Putin a great favor by ridding Russia of this element.

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    • Not so much a favor as a part of the plan. Sanctions were expected by the east just as the invasion was expected by the west. Sanctions were part of the US playbook, so you can be sure they weren’t just prepared against, but eagerly anticipated. And to ensure they would go for them, the Kremlin even left some billions as bait to be seized/frozen (not clear now if it was 300 or 130). The second part of the trap are all those weapons that miraculously find their way to the front. I have a hunch the RFA could destroy them, but they want the US to keep giving Ukraine all that aid. This will turn into a new Afghanistan all right, just not for who they think. That’s what happens when you play chess with a Russian, with the world for a board.

      Hans Gruber: ‘You asked for miracles Theo, I give you the FBI’

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    • I did mention, Khodorkovsky, also Mikhail Prokhorov, Abramovich. Basically, the majority of those born around 1965. Say, Abramovich is related to the “Yeltsin Family”. Interestingly, the concept of the Yeltsin Family itself is a good indicator of westernization and colonization. It is the western Establishment that revolves around clans and families. In USSR is was different (I’m not discussing which is better, just different).

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      • I thought Khodorkovsky and Nemtsov were examples of the second group. So the question is refrained. The second group, can you give an example? I’m familiar with the first group, I even met one who made it trough the 90s, over twenty years ago.

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        • No, they are from the third, second..red directors, I met some earlier in my career, but they are in general not famous, just the like the first group. Few survived 2000 in important positions.

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          • The difference between the first and the second group is what side of the “law” you were on, then. Both were corrupt and involved in illegal activities since the 80s, but some were part of the government and others were outright criminals. When the time came to cut the cake, it was split among them. Not much of a difference, all things considered. They were all part of the same mafia and the difference pretty much dissipated when a power vacuum presented opportunities.

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        • Nemtsov was the nephew of Yeltsin’s wife, Naina. He entered politics through the anti-nuclear green movement. Funny, green again. The Yeltsin family is really a family in the style of the Soprano family from the sitcom, but on a national scale. Oligarch Abramovich was at that time a personal friend of this Family and their personal banker. I would say that it was the Yeltsin’s state mafia that made friends with the American state mafia.

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  2. “(the direct quote would be much more colorful, but I’m not in the mood to do a fancy translation).”

    Please do provide a translation when you are in the mood.
    I am a fan of Putin’s sayings, like some he surprised Merkel with.

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    • He commented on the futility of trying to find Russian money in offshore accounts: You’ll just make yourself sick gulping down dust as you run from courtroom to courtroom.

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  3. This is what I have understood too.

    In many ways, President Putin’s approach is very aligned with Russian history, it seems. My recollection is that Peter The Great’s government was composed of men (given the time) hired on merit, not on wealth, to serve the state. They were not typically the nobility who owned the land and which were the equivalent of the oligarchs of that era. This contrasts with (for example) British government of the time that principally represented the landed class not service to the state.

    You probably have a better understanding of the history than me but I do sense that a lot of what Putin has put in place more broadly is aligned with Russian tradition. The west (especially the English speaking element) seems not to grasp that countries can very sensibly develop and set themselves up in ways that are different from how they are run. Especially the geo political circumstances of a country with long borders, many neighbours and a history of being invaded versus an island. This failure of understanding is a large part of what is driving current conflict, I believe.

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  4. Origin of economic immigrant problem is stealing of 3rd World wealth by English pirate nation even today.
    London and England lives off stolen money being brought by oligarchs from those countries which England has plotted to destabilize in last 30 years on a daily basis.
    Those oligarchs are encouraged to come to England to deposit their stolen money in british bank. A real pig Pirate state.
    Brits steal their resources, leaving an empty shell in the end.
    That impoverishes those victim countries whose oligarchs have brought money to English pirates.
    If elites of 3rd World refuse to bring money to UK then they face Maidan and colour revolutions staged by british and american spy agencies. So they have to comply.
    Fact is that 60 percent of english economy is money and drug laundering established by the english govt since ’80s. That is the reason refugees are created.. in victim countries whose creamy layer has been siphoned off to England pirate island.
    (In 90s Russia was looted by England to tune of trillion of dollars so Russian poverty rate jumped from 1.5 % in S. U. time to 50 % in 90s) while London and British economy grows with on two recession in last 25 years.

    UK Chancellor Rishi Sunak has promised an investigation into the revelations, but when asked whether he was ashamed that London is a haven for those looking to get out of paying their fair share, he said he was not.!!

    To Englishmen, Well you plunder their land and resources, help to keep dictators in powers, create Taliban and ISIS to further your geopolitical agendas then what do you expect.?

    kick England out of Europe completely. Do not encourage parasites in Europe.

    American diplomat-scholar George Kennan once wrote about the oil reserves in Persian Gulf — they are “our resources”, he wrote, integral to America’s prosperity and, therefore, the US should take control of them. (Which it did, of course.)

    Second, the England and usa spent decades contributing to regime change and destabilization in Latin America, Eastern Europe, Middle East, Africa and South East Asia . We can’t help set someone’s house on fire and then blame them for fleeing.”

    the Cayman Islands, Panama, Liberia and all the places that began to be set up by the mining companies, the oil companies and those that were set up beginning in the 1960s, essentially, by the CIA to finance the Vietnam War by making America, like England, the home for criminal capital and flight capital.

    BTW – Immigrating to country X does not mean that you approve/like/are inspired by country X or its native people, this is especially true when country X is the one which destroyed your own country of origin.
    Immigration is an extremely stressful exercise, even when done in very comfortable conditions, and even more so when done under adverse ones. Most immigrants are suffering stress/anxiety/PTSD/etc.

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  5. All wars in Europe have been consequence of english plots to make two European nations (usually the two strongest ones) fight each other. Including 1st world war and then 2nd World War.
    Gulf war was plotted by witch thatcher, first Iraq war by criminal tony blair- this Syrian war  again by english rats which borne their ugly child ISIS.
    Tony Blair, who, when occupied Iraq, claimed that “we will become the British Empire again,” meaning that he will occupy the rest of the world too!
    Now the british are repackaging their dream as global Britain. Only when wars become unpopular, the english stop taking credit for that and let blame be placed on Jews.
    and stupid people including hitler blamed jews while it was all along the english parasites who l destabilise, plot and run the war (but those cowards do not fight in beginning-they come late to feast on already weakened enemy of the day.).

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  6. Truth coming out. Ukraine war plotter yet again is england.
    So the UK’s Foreign secretary Liz Truss(according to radio news) has said that the war in Ukraine is the UK’s war, that the UK is the lead nation in the war against Russian forces in Ukraine, and that we (UK) must give Ukraine the heavy weapons it needs to win this war.

    British Foreign Secretary Liz Truss believes that NATO must become a global organization in order to be able to solve world problems.
    In other words bullying the non Anglo world.

    UK Foreign Secretary Liz Truss recently experienced her 15 minutes of glory with a blatant hissy-fit rant policy speech at a London´s Mansion House banquet. She posited that the collective West now needs “a global NATO” to pursue geopolitics anew. Publically, Ms Liz Truss tapped her well-known Rule Britannia Anglo-Saxon exceptionalistic mind-set which now would badly require a much larger “lebensraum
    That is why nato must be defeated. It is British plot for british empire number 2.
    3rd world must annihilate that evil plan.

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    • Only the male psyche and the bank account of this man always suffer from female logic. Did you not know this? Women generally should not be allowed into politics except as secretaries. Although, when I hear the words Great Britain and politics, I remember Aesop’s fable about the frog and the scorpion. The English are like that scorpion, it is their essence that justifies any of their madness.

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