Stay up to date with notifications from The Independent

Notifications can be managed in browser preferences.

Russian leaders accused of scam

Phil Reeves
Thursday 11 February 1999 19:02 EST
Comments

Your support helps us to tell the story

From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.

At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.

The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.

Your support makes all the difference.

SLOWLY, QUIETLY, an extraordinary saga is unfolding in Moscow with the potential to be an international embarrassment to Russia and one of the biggest financial scandals of the post-Soviet era.

At its heart, two questions: why did the government set up a shell company in Jersey through which it channelled hard currency reserves, apparently for five years? What happened to the profits?

An explanation came this week from Boris Fyodorov, who was finance minister when the firm was set up. It was, he says, a money-making scam for the government's cronies and corrupt officials in the Russian Central Bank. "They were simply allowing friends to earn handsome profits."

If he is right, this happened during a period when Russia received multi- billion-dollar support from the International Monetary Fund, while failing to pay wages and pensions to many millions of Russians

Mr Fyodorov - an economist widely respected in the West - said in 1993 he demanded information about the use of the firm, called Fimaco, but was told by top government officials it was none of his business.

The media has been strangely muted over the affair. Whether the parliament can glean more details is uncertain.

Join our commenting forum

Join thought-provoking conversations, follow other Independent readers and see their replies

Comments

Thank you for registering

Please refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged in