A quick search on what has transpired this week related to corruption offers many articles. Here are just a handful of summaries.

A quick search on what has transpired this week related to corruption offers many articles. Here are just a handful of summaries.

Top Crime Boss Aslay Usoyan Hit by a Sniper Bullet

Georgian Crime Boss Aslan Usoyan (Ded Hasan / Khasan) was killed by a sniper yesterday leaving a restaurant in Moscow. (Excellent coverage of him at In Moscow’s Shadows.) He was the top “thief-in-law” or code-bound criminal in Russia. Usoyan’s crime network spanned from Ukraine to well inside Siberia. His death could be related to the Sochi Olympics as he was quarreling over control of building contracts with another gang led by Tariel Oniani.  On Tuesday, Russia’s Audit Chamber Chairman stated it has been “practically impossible” to steal any of the (nearly $40 billion) funds dedicated to preparing for the Olympics. (The original budget for the Sochi Olympics was estimated at $6.25 billion.) Usoyan’s death creates a vacuum that is expected to be filled by his nephew. In addition to Sochi building contracts, Usoyan had interests in Afghan heroin trade, steel mills, banks and oil.

Germany Welcomes Russia’s Help to Bail Out Cyprus

Germany Finance Wolfgang Schaeuble told officials that Moscow must contribute to the Cypriot bailout. Russia gave Cyprus a €2.5 billion loan in 2011 and is considering working with Germany to support the bailout. Germans and other European citizens are angry about a $22.7 billion bailout that will support five Cypriot banks who have laundered Russian mafia money. German Chancellor Angela Merkel’s coalition government for the first time has failed to muster a parliamentary majority on a decision related to the euro crises because two opposition parties oppose bailing out Cyprus due to its allowance of Russian money laundering in its banks. It is estimated that at least $60 billion in Russian assets have run through Cyprus banks. European politicians are pushing for time and further concessions from the Cypriot government, specifically more transparency in its financial sector, higher corporate tax rates and more of an effort to fight money laundering. 

Moscow Regional Prosecutor Announces an Increase in Corruption

In a speech yesterday, Prosecutor Alexander Anikin announced that cases of corruption in the Moscow region increased one-third between 2011 and 2012. In his jurisdiction, there were 8,300 violations. He admitted that some of the high-profile and large-scale cases are not heard.  

Russian Defense Ministry Scandal Nets Two More

Konstantin Lapshin, an executive from the firm Slavyanka was accused of embezzlement from the holding group of companies called “Oboronservis.” A Russian court ordered his arrest as officials believe it will be easier to get evidence about the illegal sale of property owned by the Ministry of Defense if Lapshin is in jail. He is accused of stealing more than $2 million of payments dedicated to construction materials for the Ministry between 2010 and 2012. Nikolai Ryabij, an official in the Ministry of Economy was also ordered to be arrested. Oboronservis provided repair and reconstruction services for the Ministry of Defense. After buildings were repaired, a group of individuals would sell the buildings at inferior prices to their real value. The investigation, that started with accusations against Ministry of Defense Head Anatoly Serdykov, continues to broaden.

Ex-EBRD Official Faces Bribery

The Interior Ministry on Tuesday formally charged Russia’s former top representative at the European Bank of Reconstruction and Development with attempted bribery. Yelena Kotova was accused of soliciting a kickback of over $1 million from a Canadian company operating in Russia. She and banker Igor Lebedev attempted to get a $95 million EBRD loan for a Canadian oil and gas company .

Head of Rostelekom Under Investigation

Alexander Provotorov, head of telecommunications corporation Rostelekom, is being investigated with others over the default of a $225 million loan of a subsidiary of Marshall Capital, a private equity firm that he oversees as a partner. What is getting attention here is that Provortov is a Putin ally. He has even received the Medal of Honor from Putin. Apparently Dmitry Medvedev is trying to replace Provotorov at Rostelekom with law school friend Vadim Semyonov. Why this case is getting so much attention is that Putin’s Anti-Corruption Campaign, intended for public relations, could spin out of control with different powerful groups using it to gain control for their network.

Vachsky District Court Imposes Penalty  

Last year former Rosrezerv officer Andrew Silyakov was convicted for the illegal sale of four MiG-31 aircraft frames and 35,000 tons of fuel in 2007. The aircraft were stored in the “Sokol” aircraft plant in Nizny Novgorod. This week the court imposed a penalty on his property. Silyakov valued the 4 MiGs in storage at 147 rubles and then initiated sales through a chain of intermediaries. The final price for these MiGs ended at 4 million rubles.  Silyakov took advantage that his company did not know which properties were stored where. The total damage of his actions was estimated at 1.3 billion rubles. He was sentenced to 11 years in a penal colony and given a 1 million ruble fine, before the Supreme Court reduced his sentence to 10 years and 8 monhts and a fine of up to 800,000 rubles. However, he fled the country before being transferred from house arrest to prison. In July, the state found that Silyakov had additional property and the court has increased it monetary penalty again him as a result. He has not be found.

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Cartoon: Vladimir Kremlev for RT 

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