Best of the Week
Most Popular
1. Market Decline Will Lead To Pension Collapse, USD Devaluation, And NWO - Raymond_Matison
2.Uber’s Nightmare Has Just Started - Stephen_McBride
3.Stock Market Crash Black Swan Event Set Up Sept 12th? - Brad_Gudgeon
4.GDow Stock Market Trend Forecast Update - Nadeem_Walayat
5.Gold Significant Correction Has Started - Clive_Maund
6.British Pound GBP vs Brexit Chaos Timeline - Nadeem_Walayat
7.Cameco Crash, Uranium Sector Won’t Catch a break - Richard_Mills
8.Recession 2020 Forecast : The New Risks & New Profits Of A Grand Experiment - Dan_Amerman
9.Gold When Global Insanity Prevails - Michael Ballanger
10.UK General Election Forecast 2019 - Betting Market Odds - Nadeem_Walayat
Last 7 days
Market Action Suggests Downside in Precious Metals - 15th Oct 19
US Major Stock Market Indexes Retest Critical Price Channel Resistance - 15th Oct 19
“Baghad Jerome” Powell Denies the Fed Is Using Financial Crisis Tools - 15th Oct 19
British Pound GBP Trend Analysis - 14th Oct 19
A Guide to Financing Your Next Car - 14th Oct 19
America's Ruling Class - Underestimating Them & Overestimating Us - 14th Oct 19
Stock Market Range Bound - 14th Oct 19
Gold, Silver Bonds - Inflation in the Offing? - 14th Oct 19
East-West Trade War: Never Take a Knife to a Gunfight - 14th Oct 19
Consider Precious Metals for Insurance First, Profit Second... - 14th Oct 19
Stock Market Dow Elliott Wave Analysis Forecast - 13th Oct 19
The Most Successful IPOs Have This One Thing in Common - 13th Oct 19
Precious Metals & Stock Market VIX Are Set To Launch Dramatically Higher - 13th Oct 19
Discovery Sport EGR Valve Gasket Problems - Land Rover Dealer Fix - 13th Oct 19
Stock Market US Presidential Cycle - Video - 12th Oct 19
Social Security Is Screwing Millennials - 12th Oct 19
Gold Gifts Traders With Another Rotation Below $1500 - 12th Oct 19
US Dollar Index Trend Analysis - 11th Oct 19
China Golden Week Sales Exceed Expectations - 11th Oct 19
Stock Market Short-term Consolidation Does Not change Secular Bullish Trend - 11th Oct 19
The Allure of Upswings in Silver Mining Stocks - 11th Oct 19
US Housing Market 2018-2019 and 2006-2007: Similarities & Differences - 11th Oct 19
Now Is the Time to Load Up on 5G Stocks - 11th Oct 19
Why the Law Can’t Protect Your Money - 11th Oct 19
Will Miami be the First U.S. Real Estate Bubble to Burst? - 11th Oct 19
How Online Casinos Maximise Profits - 11th Oct 19
3 Tips for Picking Junior Gold Stocks - 10th Oct 19
How Does Inflation Affect Exchange Rates? - 10th Oct 19
This Is the Best Time to Load Up on These 3 Value Stocks - 10th Oct 19
What Makes this Gold Market Rally Different From All Others - 10th Oct 19
Stock Market US Presidential Cycle - 9th Oct 19
The IPO Market Is Nowhere Near a Bubble - 9th Oct 19
US Stock Markets Trade Sideways – Waiting on News/Guidance  - 9th Oct 19
Amazon Selling Fake Hard Drives - 4tb WD Blue - How to Check Your Drive is Genuine  - 9th Oct 19
Whatever Happened to Philippines Debt Slavery?  - 9th Oct 19
Gold in the Negative Real Interest Rates Environment - 9th Oct 19
The Later United States Empire - 9th Oct 19
Gold It’s All About Real Interest Rates Not the US Dollar - 8th Oct 19
A Trump Impeachment Would Cause The Stock Market To Rally - 8th Oct 19
The Benefits of Applying for Online Loans - 8th Oct 19
Is There Life Left In Cannabis - 8th Oct 19
Yield Curve Inversion Current State - 7th Oct 19
Silver Is Cheap – And Getting Cheaper - 7th Oct 19
Stock Market Back to Neutral - 7th Oct 19
Free Market Capitalism: Laughably Predictable - 7th Oct 19
Four Fundamental Reasons to Buy Gold and Silver - 7th Oct 19
Gold and Silver Taking a Breather - 7th Oct 19
Check Engine Warning Light ECU Dealer Diagnostic Cost - Land Rover Discovery Sport - 6th Oct 19

Market Oracle FREE Newsletter

Stock Market Trend Forecast Oct - Dec 2019 by Nadeem Walayat

Khodorkovsky's trip to the slammer, Justice Has Prevailed

Politics / Russia Dec 31, 2010 - 03:26 AM GMT

By: Mike_Whitney

Politics

Vladimir Putin summed it up best when he said, "A thief should sit in jail." Right on. It doesn't matter if he is the richest man in the country or not. If he's done the crime, he's got to do the time. It's that simple.

On Wednesday, Mikhail Khodorkovsky, the former head of Yukos Oil was sentenced to 14 years in prison for embezzling and money laundering. Heads of state, human rights organisations, business leaders, and the entire western media have all protested on Khodorkovsky's behalf, but to no avail. Khodorkovsky will stay in prison where he belongs. Justice has prevailed.


Khodorkovsky's problems began when he challenged an informal agreement with the Kremlin not to intervene in Russian politics. But the oil oligarch thought Putin was weak, so he strengthened his contacts in Washington and dumped money into parliamentary elections. He unwisely assumed that he could defy Putin and extend his tentacles into politics following the model of corporate control he saw in the United States, where the courts, the congress, the White House and the media are all in the pocket of big business. Only he misjudged Putin and ended up in the hoosegow.

According to the Wall Street Journal:

"Mr. Khodorkovsky was arrested on a rented jet in Siberia Oct. 23, 2003, flown to Moscow and jailed on charges of fraud and tax evasion. Just over a year later, Yukos's main subsidiary had been sold at auction to a little-known Russian company that later sold it to the state oil company, OAO Rosneft.

Investors, who watched the market value of Yukos plunge from $40 billion to next to nothing in a matter of months, proved to have short memories. By the summer of 2006, they were lining up to buy stock in Rosneft's initial public offering. The company's main asset had belonged to Yukos."

And, according to Wikipedia:

"Khodorkovsky was charged with acting illegally in the privatisation process of the former state-owned mining and fertiliser company Apatit......In addition, prosecutors conducted an extensive investigation into Yukos for offences that went beyond the financial and tax-related charges. Reportedly there were three cases of murder and one of attempted murder linked to Yukos, if not Khodorkovsky himself....."

When a deep-pocket Robber Barron is charged with a crime, everyone comes to their aid, including "the Italian Parliament, the German Bundestag, and the U.S. House of Representatives". But Khodorkovsky is guilty. The Russian court got it right. The rest is just propaganda.

The portrayal of Khodorkovsky as an "innocent victim of a justice system run amok" borders on the ridiculous. Take a look at this comical article in the Economist ominously titled "The Trial, Part Two". Here's an excerpt:

"The transformation of Mr Khodorkovsky from a ruthless oligarch, operating in a virtually lawless climate, into a political prisoner and freedom fighter is one of the more intriguing tales in post-communist Russia....In this narrow sense, indeed, the imprisoned Mr Khodorkovsky might be compared to the exiled Andrei Sakharov in the 1980s. Both Mr Khodorkovsky and Sakharov, an eminent nuclear physicist, chose a thorny path. And both of these one-time political prisoners then, in effect, took their persecutors and jailers hostage. Just as Mikhail Gorbachev’s talk of perestroika, opening up and new thinking, rang hollow until the moment when he allowed Sakharov to come home, so any talk by the Kremlin of the rule of law or about modernisation will be puffery so long as Mr Khodorkovsky remains in jail." (The Economist)

So now the cutthroat scamster Khodorkovsky is Andrei Sakharov? One might think that the Economist would worry that such claptrap would damage its credibility, but apparently not. Apparently, nothing matters quite as much as springing their felonious friends from prison.

The Obama administration has also interceded on Khodorkovsky's behalf even before the verdict was delivered. White House spokesman Robert Gibbs said that the US was troubled by “what appears to be an abusive use of the legal system for improper ends”.

“The apparent selective application of the law to these individuals undermines Russia's reputation as a country committed to deepening the rule of law.”

Gibbs failed to note how many crooked CEOs or CFOs of major Wall Street firms have been investigated, indicted, prosecuted, arrested, tried, or convicted?

So far, that number is zero. So much for the Obama administration's commitment to the rule of law.

Secretary of State Hillary Clinton also put in her two-cents saying that a conviction would have a “negative impact on Russia's reputation.”

Right. This is the same Hillary Clinton who has thrown her support behind the Patriot Act, the intrusive/illegal TSA "pat downs", the limitless detention of terror suspects, increased surveillance of US citizens, and the de facto repeal of habeas corpus.

Clinton's credibility on civil liberties is zilch.

Imagine what it would be like to live in a country where the rich had to play by the same rules as everyone else? Presumably, one would have to move to Russia. There is no expectation of justice in the US today. None.

Khodorkovsky was convicted because he's a crook and because the Russian justice system is less corrupt than the one in the US. His incarceration is a victory for the people who want to see the law applied fairly regardless of how rich someone is.

By Mike Whitney

Email: fergiewhitney@msn.com

Mike is a well respected freelance writer living in Washington state, interested in politics and economics from a libertarian perspective.

© 2010 Copyright Mike Whitney - All Rights Reserved Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

Mike Whitney Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Comments

Parth Vasa
04 Jan 11, 00:15
Brave article

To this day based on Western media Khordokovosky still seems like the good guy.


EUGrrr
05 Jan 11, 06:41
Khordokovosky

Khordokovosky is crime. All Russia know it.


Winteria
06 Jan 11, 01:38
russian justice

I disagree with you, Mike - russian justice is corrupted too, but everyone in Siberia agree that Khodorkovsky is a crime, cause we see everything that happens around YUKOS every single day.

Just google about case with Nefteyugansk mayor Petukhov that happens in 1998.


Paul
07 Jan 11, 03:25
corrupted

All Justice systems are corrupted, its just the Americans are leading the pack these days.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules