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| INTERVIEW | Monday, 6 August 2001 |
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Michael Chernoy: There is a Cold War Against Russian Capital Abroad
Apart from the notorious accusations of money laundering, Russian communities abroad have to face charges of racketeering, murders and other crimes, allegedly committed back in Russia. After the inquiries initiated due to these reports in the Western media, the investigative authorities of Russia usually disprove such information, rightfully considering it indefensible. Fanning up the hysteria around the so-called "Russian mafia" recently has become worrisome not only to the Russian Diaspora abroad, but also to the Foreign Ministry in Moscow. The question suggests itself - is it not true that the West is waging the pre-planned campaign aimed at discrediting the most notable representatives of the Russian business circles that will lead to curbing the economic influence of Russia on the international market? Michael Chernoy, representative of Russian big business in the Israeli Diaspora, offers his comment on the situation. - You moved to Israel 7 years ago. You run business on the international scale and have a vast network of connections with Russia and Israel. Business brings together these two countries - we have never had any geopolitical conflicts of interests. Immigrants from Russia - and they account for 15 % of the Israeli population - are a living bridge between the two countries. How would you describe the development of economic relations between you and your second Motherland?- When I came here I was openly encouraged to invest in Israel and launch joint Russian-Israeli projects. I was planning modernization of the metallurgical industry in Israel, to produce unique alloys from Russian raw materials, to invest in other sectors, important for the economy of Israel. Front-line politicians used to tell me that the Israeli economy is sluggish, unemployment rate goes up and there's a crying need for new ventures, new jobs and fresh foreign investments, Russian in particular. However, when the moment came to implement serious projects, I have encountered with a fierce and powerful opposition. For instance, the military plants of Israel were willing to buy our production, bullet-proof aluminum alloys, for army equipment. They are lighter, more reliable and cheap than those produced in the West, that's why even ordinary drivers, who have to face the risk of terrorists' attacks on the roads of Judea and Samaria, could have afforded this protective armour. As a prospect we had plans for another defense-related products - for we have common enemy, Islamic terrorism, haven't we? Nevertheless, at the last moment the state commission denied us the license. It turned out that the local police has put us on some "black list" for alleged "connections with the Russian mafia". When it came to the investments into Israeli industry, the police started to threaten our local partners openly, trying to warn them off and prove that co-operation with "Russians" might result in complication for them. There were certain attempts to discredit me abroad - in dozens of countries special services received reports and inquiries about the mythical "crimes of Chernoy". As a result, respectable international banks, which previously took part in my investment projects, became cautious and started to avoid working in partnership not only with me, but with other Russian industrialists, too. - You have been accused of "laundering the Russian mafia's money" through buying out shares of the Israeli state telecom "Bezeq". Both Russian and Israeli media commented the case at length. - It has all started when I gave a loan to an Israeli investor, who proved to be a competitor of powerful oligarchs. This has triggered off the legal procedure and I was dragged into it. When it became evident that the trial is falling apart, the police produced information that back in Russia I had contracted 37 killings, without any evidence whatsoever! But the Prosecutor's Office of the Russian Federation, RF Ministry of Interior and the investigation department of the RF Security Service reported back that I have never been suspected either in economic or criminal offenses. However, the Israeli police managed to hit their target - my business reputation has been seriously marred, I've suffered losses and had to sell out part of my companies in Russia. Up to now, the abortive "case" is not closed, while I'm deprived of my right to travel freely and cannot work effectively. - Haven't you noticed that the questions are so many that it's difficult to put them within the framework of an ordinary conversation? Who has the interest in ruining the business of Michael Chernoy? What has provoked the actions of the police, which you see as groundless? Who wants to discredit the Russian businessmen in Israel and other foreign countries? Maybe we can find the answer in the conclusions of Alexander Bovin, who has been the ambassador of the USSR and then Russian Federation in Israel for 5 years. I'll take the liberty to quote him, "We are confronted with the presumption of culpability. Any Russian citizen, whom the Israeli establishment consider as "unhandy and unsuitable" is fitted into the definition "Russian mafia". It is brought home to all Israelis that whatever or whoever comes from Russia smacks of "mafia". And further on, "The aim of the exercise is to set barriers on the Russia's way to the Middle East markets". You probably know better who backs up this stand and who is campaigning against Russia in the face of its businessmen? - I can distinguish three groups that are interested. First, this is the elite of the financial and industrial circles that has influence over certain politicians and some power structures in their native countries. They are afraid that businessmen who emigrated from Russia will undermine their monopoly. In Israel it is especially transparent - privatization of delicious morsels in the state-owned sectors is looming, so the local oligarchs are trying to push out everyone who doesn't belong to their clan. The scandal with "Bezeq", for instance, has decreased the price of the company from $ 4.5 billion to $ 3.5 - this a loss for both the state and small shareholders, but a sure gain for those who ordered this scandal and have a chance to buy cheaply and then sell at high price. The second 'concerned group' are the overseas rivals of the Russian business. The point is that the geopolitical ambitions are dictated by the interests of the big American business. Look at the suspicious coincidences that should put you on alert: the shrinkage of the Russian Defense Complex helped throw out the surplus output of the heavy industry on the international market. The FBI and the other special services immediately began referring to the Russian industrialists as 'the Russian mafia'. As for the Russian raw material dealers - oil-producers, gas-producers, as well as bankers and media-magnates, they didn't have any claims to them: they supplied cheap raw materials or made capitals on the Russian pyramid structures and other shady financial operations. As far as the majority of the European countries, Israel included, are dependent politically and economically on the USA, the special services and the media in those countries are being used as tools in this invisible struggle which is waged on the world market. The third clan of concerned persons are the Western special services. After the end of the 'cold war', many of them were practically left jobless: in this way the concept of 'Russian mafia' became a brilliant pretext to preserve the previous ones with intact staff and the budget. - The war between the groupings is a well-known and well-exposed subject in Russia. Perhaps, the Russian emigrants simply could not adjust to the local realities? - Even now there are stereotypes and ignorance in the attitude of the the West towards Russia. Having no idea of realities in Russia, the Western media spread lies and overt misinformation on the origin of the new Russian capital. The majority of Russian industrialists, like me, made their capital absolutely legally within the framework of the legislation acting in Russia. When Gossnab (state supplier) collapsed, hundreds of enterprises turned out to be on the brink of closure and millions of people could lose their jobs. The Russian businessmen, who managed to organize the purchase of raw materials, transportation, export, to keep in line production and preserve jobs, those who believed in privatization, risked and bought shares of enterprises, rescued Russia's industry and enriched themselves. In this there is neither crime nor disgrace, but I regard it as services rendered to Russia. I, for one, made a substantial portion of my wealth thanks to my faith in Russia. More particularly, when on the eve of the 1998 crisis, panic-stricken Western and many Russian investors sold out shares of Russian enterprises, believing that democracy and the market economy in Russia had come to an end, I took the risk and gained. I trusted in its future. - In this country, like throughout the world, there are capitals amassed in a criminal way - money gained from illicit trade in arms, smuggling of drugs, people and shady financial affairs. Probably this might be referred to 'Russian mafia'. However, the Western media seem to intentionally evade differentiating between the above-mentioned and the legal Russian business. It seems, it is much easier and more advantageous to spread stereotypes - this is the money of the party, the money of KGB or the money of the mafia? - We should keep in mind that there is most flagrant discrimination of immigrants in general, and immigrants from Russia, in particular. They are regarded as second-rate people who have greatly profited from being allowed into the Western paradise. For this reason the Russian, and in the Israeli case - Jews from CIS have to keep quiet, and not try to establish, like the other municipalities, financial elite of their own, or have newspapers, factories and plants of their own. The Russian - as a refugee from 'the savage and poor Russia' must silently live on welfare and should not 'demand any rights'. And all of a sudden there emerges a new generation - people from the new Russia who do not go pan-handling, but want to lead an active and full-fledged life now, in the economic and financial spheres included. I don't mean only the big businessmen, but hundreds of thousands of medium-level specialists, professionals and businessmen from Russia. And the locals regrettably begin to feel envy and fear before those 'rivals', although the successful integration of Russians abroad enriches the recipient country and Russia alike. - Judging by a number of objective facts, the Russian business seems to have learnt to defend itself: courts abroad receive piles of claims for defending one's honour and dignity. And almost all the trials have been won - Grigorii Luchanskii defended his reputation in England, Vadim Rabinovich - in Germany, Arkadii Gaidamak - in France. Oleg Deripaska is currently defending his good name in America. Do you plan to be victorious in the Israeli court? - I have noticed that compromising the reputation of the Russsian businessmen is not our private problem, but a problem of Russia. This is part of the struggle aimed to prevent its entry into the international economic space, it undermines its prestige and inflicts direct damages: the ousting of our Russian companies from the international stock exchange - this means millions of dollars in taxes which don't reach Russia's treasury, it means curbing production in Russia, unemployment and as a result of it - threat of a social outburst. This is why Russia must fight the discrediting of its businessmen on an official level. In the West they have to know - Russia is aware of the genuine reasons for this smear campaign, and it won't put up with it. Dmitrii Klimentyev, especially for www.FLB.ru (SB) |