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Who Will Suffer as a Result of a Coal Story?

Who Will Suffer as a Result of a Coal Story?
Oleg Sultanov 29.07.2008

As a preface of today's version I shall ask the readers one simple question: where would a prime minister of some capitalist country N find himself, if after his public performance capitalization of the large industrial company working in the state N would be reduced on 32%? Well, have you already answered the question? I do not accept an answer, as vulgar lexicon connected to not normative name of anal hole of the mammalian is excluded. What do you say you cannot find other words? I understand you.

Still let's try to orientate calmly, without reference to humiliating human advantage slang - I promise "to send the doctor" for "clearing operation" ...

One pen-friend journalist had recently joked that few days ago militia tore away "signboard", ostensibly, set up by somebody's mischievous hand near to the Russian White House: "Joint-Stock Company - "Trading House of VVP and Co". I think such "applied arts" have unfair character; it is that case when incompetent in the economy person wants to say something that will sound insulting for our "national" government.

And, judging from V.Putin's performance in Nizhni Novgorod in July at a meeting on questions of metallurgy, everyone wants to offend our cabinet. Especially tragic touches were used by the chairman of the government in describing situation which was created by artful management of Joint Stock Company "Mechel" - one of the leading companies in metallurgical and mining branches of Russia. Vladimir Vladimirovich was terrible at displaying interest in "margin" in the form of taxes, he openly specified that "Mechel" traded incorrectly and concealed that very "margin" from our government.

In opinion of prime-minister, Federal Anti-Monopoly Service and Investigatory Committee of the State Office of Public Prosecutor should pay attention to this, sure thing, rare problem in Russian business - community. The lawyer V.Putin said exactly the following: "It is necessary to understand what's going on here!"

Certainly, it would be more effective if such threats from the part of the second official in the state would sound after termination of investigatory actions and even better - after promulgation of a judgement. In this case in the hands of mister V.Putin, probably, there already would be concrete proofs that the company deceived the government. But, as far as I understand, official-denunciator doesn't have such proofs. Hence, accusation can be regarded as a little bit premature and, I even would say, rendering harm not only to "Mechel" but also the state in which this Joint Stock Company works. So, paraphrasing dear Vladimir Vladimirovich, it would be reasonable to reproach him using approximately such words: "First of all understand what is going on here and then prophesy from a tribune about infringements revealed!".

On the other hand, to frighten the heads of the legislative enterprise (any opposite, publicly stated opinion before adjudication - is illegal) possible "mopping up", I believe, is similar to blackmail with use of power methods. Another thing is also terrible: "insight" of the head of the government is perceived by the Russian investigatory bodies usually as evidence and there is no doubt that in the near future our judges will receive mountains of documents "confirming" that present heads of "Mechel" seriously thought out the ways to cheat the state already at the moment of establishment.

I suggest, dear readers, following the order of prime-minister, "to understand what's going on here", to try to do it together - in view of those facts which the former president of the Russian Federation "for some reason forgot".

... At the end of the last year Joint Stock Company "Mechel" got solid coal actives of republic Saha - Yakutia (share holdings of JSC "Yakutugol" and JSC "Elgacoal") almost for 60 billion roubles. It means - coal stocks of billions tons, at that also of anthracite which can't be found anywhere in the Russian Federation. By some estimations, "Mechel" nowadays supervises also up to 70% of the Russian manufacture of "lean" marks of metallurgical coal ("CO", "OS", "C"); it is very much claimed in Southeast Asia and in the Russia too. In a word, this company confidently goes to economic prosperity having united manufacturers of coal, iron-ore concentrate, nickel, steel, rent, production of high repartitions, thermal and electric energy.

It's clear that business of "Mechel" consisting of mining, metallurgical and power segments attracts many sharks of the Russian capitalism.

The question about the reasons of discontent of Vladimir Putin with the work of "Mechel" is reasonable. I shall allow myself to remind the prime minister that on January, 6, 2006, when the president V.Putin was with working visit in Yakutia, he proposed  creation of international consortium for realization of the project of entering into exploitation of Elga deposit of coal. I remember his words that "it is necessary to keep leading positions of the Russian strategic investor". The question is, whether "Mechel" ceased now to be such investor?

Having entered the Yakut deposits, this company, as far as I know, is not going to resell coal actives and is planning to increase extraction up to 60 million tons annually. That is there is an obvious consolidation of coal actives and IPO access. Whether it is bad that group "Mechel" is ready to enter share market with its mining structure (Frankfurt, London, Тоronto stock exchanges)?

Prospects on carrying out of IPO and other business of JSC are huge. I shall not praise "Mechel" so that I won't be accused in carrying out of latent advertising of this company but I shall simply note: in my opinion, it is a tidbit for many colleagues and high-ranking officials "patronizing" them. Those very officials who during the expired years of a new century had been making light of the appearance of numerous feeding for concrete grades of the state and oligarches appointed by them as a result of artificial complex and odd synthesis of different JSC, Ltd, banks, oil, gas.

Many former communists and Komsomols, officers of special services of the USSR for already almost two decades are on the front shadow wars on economic fronts of being robed Russia, battling against people and for own financial well-being. War is war; it is always accompanied by intensity, distribution of rumours, disinformation which result, in our case, in a fever at stock exchanges, in rise and slump of share prices and, finally, as it's always in Russia, in a victory of economic gangsters over logic of development of society.

The hydrocarbonic raw material of Russia became for many being far from the best sons a pass into undeserved full life authorized by authorities, a mean of appearance in our country of a caste of officials and businessmen who do themselves well and refuse in everything to surrounding them "cattle". I think, it's beyond dispute that Russia nowadays is an exemplary center of the sharpest economic contradictions between the majority of population plundered in 90s years and minority prospering due to a source of raw materials.

Who can deny that somehow on a sly deafening applause of authority connected to convincing "victories" of priority national projects decayed? For example, in the field of education experiment with Universal State Exam showed its full inconsistency. But, dear officials, who let you to carry out experiments on people?!

What is the result of victorious praises connected to "reform" of public health services, where are hi-tech medical centers promised to people? Reforms of agriculture led to significant rise in price of products.

Habitation? Prime-minister V.Putin confesses that prices for it are accessible only to 10-12% of the population, he demands to make them be accessible to 60%. Well, there will be 60% and where do the rest of 40% should live?

In my opinion internal policy of the government of V.Putin leads to stratification of a society. This policy can be compared positional to the latent genocide. 

However, let's return to the "problem" of JSC "Mechel", artificially bloated by the prime minister of Russia V.Putin. He asserted that that company sold a part of coal under the prices below market ones. Especially for the chapter of the Russian government I will stress probably unknown to him the fact: less than a year ago the company criticized by you bought JSC "Yakutugol" with which in due time the Asian partners concluded the contract about delivery of coal - under the prices below market ones. This is, actually, all. So, hold back from "mopping up", mister prime-minister - minister of the Russian Federation. Yours experts are being awaited not in the industry but in the mountains of Northern Caucasus where "priority national project" under the name "Safety of People" still fail to win ...

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