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Commentary
American Interest

Whitewashing Putin's Kleptocracy

It takes no less of an author than Peter Pomerantsev to write an extremely insightful book like that reveals the surreal heart of Putin鈥檚 Russia. It is much harder to say what kind of author it would take to write a book on the surrealism penetrating America and the West as a whole, but Pomerantsev鈥檚 title would be a good fit if we could re-use it.

At a moment when Russia is under a richly deserved sanctions regime, when some call the present state of affairs a New Cold War, and when Putin鈥檚 ambitions are the most dangerous threat to America by several high-ranking and , it doesn鈥檛 seem like the most propitious moment for an awards dinner for one of Putin鈥檚 鈥渃ronies鈥濃攎uch less one held in Washington by a federally funded U.S. institution.

But, as the book says, everything is possible. And on November 3 the Woodrow Wilson International Center for Scholars, a think tank that receives U.S. government funding, will bestow the Woodrow Wilson Award for Corporate Citizenship to Petr Aven, the chairman of the board of directors of Russia鈥檚 largest commercial bank, Alfa-Bank, and a member of the board of directors of LetterOne Group.

It is true that Mr. Aven, unlike several other Russian businessmen, is not a subject of U.S. sanctions. It is also true that, by some accident or oversight, he is not often publicly presented as a 鈥渃rony鈥� of Putin. However, it is no less true that, prior to the Wilson Center鈥檚 award, Mr. Aven, unlike , was endowed with

A brief review of the business record of Mr. Aven鈥檚 companies should be sufficient to add a note of controversy to the decision to give an award for corporate citizenship to such a businessmen. Aven鈥檚 record is marked by repeated and often acrimonious commercial or even legal disputes with partners, especially in the West. Cases such as and , in which BP鈥檚 U.S. CEO Robert Dudley was literally and in return, are the first that come to mind.

But the plan evidently is to convince us that nothing is true, and the Wilson Center has engaged powerful advocates who understand that this means everything is possible.

The first of these is former BP CEO Lord Browne, who has apparently buried his personal knowledge of his Russian partners鈥� being 鈥渞uthless and dishonest鈥�, as last February he On November 3 Lord Browne will co-chair the awards dinner for Mr. Aven. In Putin鈥檚 Russia, it seems, 鈥渋t鈥檚 nothing personal, just business.鈥�

Another co-chair of the event is no less prominent, and no less informed about the true state of play in Putin鈥檚 Russia, as well as the way Mr. Aven and his friends have been operating their business in Russia: former U.S. Ambassador to Russia James F. Collins, a senior associate of the Russia and Eurasia Program at the Carnegie Endowment for International Peace.

It is hard to believe that a former Ambassador to Moscow does not know ( at least, if from no other source) how business transpires in a country described by Spanish prosecutor Jose Grinda Gonzales as a corrupt, autocratic Kleptocracy, centered on the leadership of Putin, in which officials, oligarchs, and organized crime are bound together in the creation and maintenance of a 鈥渧irtual mafia state.鈥� One supposes Ambassador Collins is going do his best to convince us that nothing is true鈥攐r at least that these things have nothing to do with Mr. Aven and his business record.

The timing of this award seem rather propitious as well. But perhaps it is just a coincidence that and LetterOne have recently initiated a in the wake of the British government鈥檚 decision last spring, citing , to order LetterOne its North Sea gas fields within six months. Though Aven鈥檚 name was rarely mentioned publicly in regard to that British government order or the aforementioned business disputes, he was involved in more ways than just as a shareholder or corporate officer.

Mr. Aven鈥檚 long-standing business relations to Putin personally are no big secret in Russia. The late Russian oligarch Boris Berezovsky, who once was dubbed by Paul Klebnikov as 鈥渁 Godfather of Kremlin,鈥� admitted that it was Mr. Aven who introduced him to Putin. And Mr. Aven鈥檚 role during the birth of Putin鈥檚 kleptocracy, perfectly described by Karen Dawisha in her book is certainly controversial, to say the least. It was Mr. Aven, who made it possible for Putin to originate at least part of his corruption schemes in St. Petersburg, which were later unsuccessfully investigated by the and others.

There is an abundance of that ought to make one think twice before offering him anything like an Award for Corporative Citizenship. In normal circumstances such allegations would warrant, at a minimum, some in-depth investigation prior to the bestowal of any award.

But then again everything is possible. All it takes involving the sale of TNK-BP to Rosneft and a slick PR campaign to whitewash a soiled reputation. The same Wilson Center that not so long ago for Karen Dawisha鈥檚 aforementioned book鈥攁 book that, not incidentally, makes a number of accusations against Mr. Aven鈥攏ow turns a blind eye on those accusations, as if nothing is true.

If a Russian plutocrat can have his record whitewashed with the help of a federally funded U.S. institution, please tell me what, if anything, is not possible. And if you don鈥檛 accept this as evidence of the penetration of the Russian kleptocracy into the United States and the West as a whole鈥攚hat Ilya Zaslavski characterizes as the 鈥� then please tell me what kind of evidence you would accept.