Russia’s economy minister arrested

BOFIT Viikkokatsaus / BOFIT Weekly Review 2016/46

Russia’s Federal Investigative Committee announced very early Tuesday morning (Nov. 15) that economy minister Alexei Ulyukayev had been detained. It was further noted that Ulyukayev had been “caught red-handed” taking a $2 million bribe and had also been charged with extortion. The Investigative Committee operates under the auspices of the Russian president. The Committee said that Ulyukayev had demanded payment from state oil giant Rosneft for his support in a deal to acquire slightly over half of the shares of the state-owned Bashneft oil company. The Committee’s press release noted that Ulyukayev had also threatened to complicate Rosneft’s operations, and that Rosneft reported the $2 million bribe to the police.

The arrest was met in Russia with surprise and raised suspicions about the motives of the arrest e.g. among key characters in the business community. Prime minister Dmitri Medvedev said the arrest was hard news, even if he called for equal treatment of all before the law. No matter what the facts are in the matter, the arrest yet again tells about uncertainty and the pitfalls of operating in Russia.

Ulyukayev has enjoyed a prominent career, serving as first deputy finance minister (2000–2004), CBR first deputy governor in charge of monetary policy (2004–2013) and economy minister (summer 2013 onwards).

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