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Monday, 1 November 2010 - Jailed tycoon warns of crisis in Russia |
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    Read more with google mobile : Jailed tycoon warns of crisis in Russia |

    Edition: U.S. Article Comments (0) Email Print Reprints Full Focus Editor's choice A selection of our best photos from the past 24 hours.  Full Article  Read Jailed tycoon warns of crisis in Russia 8:28am EDT Drug experts say alcohol worse than crack or heroin 10:23am EDT Governments review air security after Yemen plot | 11:32am EDT Pope condemns "ferocious" attack on Baghdad church 7:41am EDT UPDATE 3-Ambac says may go bankrupt this year; shares sink 10:53am EDT Discussed 261 Wall St reform architect Frank fights for survival 96 Republicans poised to win House and gain in Senate 58 Tea Party-backed Republicans spur party switches Watched Bejeweled bra exposed in NY Thu, Oct 21 2010 Russian spy poses for Maxim Tue, Oct 19 2010 Mexico's 20-yr old police chief Thu, Oct 21 2010 Jailed tycoon warns of crisis in Russia Tweet This Share on LinkedIn Share on Facebook MOSCOW (Reuters) - Jailed tycoon Mikhail Khodorkovsky said in an interview published on Monday that Russia could face a crisis within five years as lower economic growth rates leave the Kremlin with less oil money to ease social tensions. Khodorkovs... Related News Churches set ablaze in Russia's Muslim Caucasus 7:53am EDT Related Topics World » Russia » Jailed Russian former oil tycoon Mikhail Khodorkovsky (R) stands behind a glass wall during a court session in Moscow November 1, 2010. Once Russia's richest man, 47-year-old Khodorkovsky has one year left to serve in the eight-year sentence imposed after a high-profile fraud and tax evasion trial that tarnished Russia's image during Vladimir Putin's 2000-2008 presidency. Credit: Reuters/Tatyana Makeyeva MOSCOW | Mon Nov 1, 2010 8:28am EDT MOSCOW (Reuters) - Jailed tycoon Mikhail Khodorkovsky said in an interview published on Monday that Russia could face a crisis within five years as lower economic growth rates leave the Kremlin with less oil money to ease social tensions. Khodorkovsky, once Russia's richest man, was arrested in 2003 after falling foul of the Kremlin under Vladimir Putin. His business empire, which produced more oil than OPEC member Qatar, was carved up and sold to state controlled companies. In his first major interview with the Russian media since his arrest, Khodorkovsky painted a bleak picture of Russia's development after the 2012 presidential election. "There is a growing contradiction between the decreased potential of the unmodernized economy, the avarice of the bureaucracy and.... the expectations of the population," Khodorkovsky told the Novaya Gazeta newspaper. He said President Dmitry Medvedev's calls for modernizing the economy were doomed to failure because of the "complete criminalization" of the bureaucracy which would sabotage any real attempt at reform. "Do you want my prediction? Until the thunder strikes, our elite will do nothing," said Khodorkovsky, whose followers say is Russia's most prominent political prisoner. "The next crisis point will come in around 2015." Khodorkovsky was sentenced in 2005 to eight years in jail for fraud and tax evasion. He is now on trial on new charges of money laundering and embezzlement for which prosecutors said last month he should serve an extra 6 years in jail. The Kremlin could not be reached for immediate comment as Medvedev was returning from a trip to Russia's Far East. RUSSIAN STRIFE After a decade-long boom, Russia's economy was hammered by the global economic crisis, contracting 7.9 percent in 2009, the worst annual contraction in 15 years and by far the worst hit among major emerging market peers such as China or India. The $1.2 trillion economy is forecast to grow about 4 percent this year, though Khodorkovsky said there was little scope for further growth on the back of sales of raw materials, Russia's main exports. "The potential for growth from natural-resources has been exhausted," Khodorkovsky said, adding that sluggish rises in labor productivity would leave Russia behind rivals such as China and India. Analysts are mixed over prospects for long-term Russian growth, which primarily depends on commodity exports. He added that blossoming corruption among officials would put a drain on the Kremlin's shrinking resources, leading to rising prices for the population of whom 20 million live in poverty on incomes of less than 5,500 roubles ($180) a month. Last week, Transparency International rated Russia joint 154th out of 178 nations in its corruption perceptions index, along with Cambodia, Kenya and Laos. 1 2 Next World Russia     Add a Comment *We welcome comments that advance the story directly or with relevant tangential information. We try to block comments that use offensive language or appear to be spam and review comments frequently to ensure they meet our standards. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters.   © Copyright 2010 Thomson Reuters Editorial Editions: Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom United States Reuters Contact Us Advertise With Us Help Journalism Handbook Archive Site Index Video Index Reader Feedback   Mobile Newsletters RSS Podcasts Widgets Your View Analyst Research Thomson Reuters Copyright Disclaimer Privacy Professional Products Professional Products Support Financial Products About Thomson Reuters Careers Online Products Acquisitions Monthly Buyouts Venture Capital Journal International Financing Review Project Finance International PEhub.com PE Week FindLaw Reuters on Facebook Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. Thomson Reuters journalists are subject to an Editorial Handbook which requires fair presentation and disclosure of relevant interests. NYSE and AMEX quotes delayed by at least 20 minutes. Nasdaq delayed by at least 15 minutes. For a complete list of exchanges and delays, please click here.

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