Chapter 371 You can't have everything: Pay 100 million in taxes first.
Yura watched Berezovsky, looking lost and dejected in the rearview mirror, grow smaller and smaller until he disappeared like an ant. Excitedly, she clenched her fists, pulled her elbows back, and made a "V" sign.
He genuinely disliked Berezovsky.
After the All-Russian Automobile Union Securities incident, he got into a feud with the other party.
A greedy liar being cast into the 18th level of hell is the best retribution he could receive!
Looking at Yura, who was so excited that his face was red, Wang Xiao's only thought was: the Soviet Union was indeed lacking in political talent.
Otherwise, how could Yura, a third-generation member of the elite, be so naive, even if he had no special teaching and grew up surrounded by the culture, and had pursued a career in politics, rising to a high position at a young age without encountering any setbacks?
Yes, yes, the auction went well today, and she and Ivanov were both happy.
But what excites them is money, huge amounts of real gold and silver.
Just kidding, even if the world's richest man came and acquired a 51% stake in Russia's sixth-largest oil company for $105 million, he would still be laughing all the way to the bank.
Even though oil prices remain low, its actual value is still well over $1 billion.
This is basically a free lunch; whoever wins it gets an adrenaline rush and is overjoyed.
If it weren't for her injured shoulder and Ivanov's broken leg, the two of them together wouldn't even be a complete person, and they could definitely have thrown a party and danced until dawn.
Aside from that, if there's anything else that satisfied them about acquiring shares in Siberian Oil Company, it's that they effectively retaliated.
Siberian Oil Company served as a slap in the face to the fledgling oligarchs, warning these restless individuals: don't overreach.
Is this food in your bowl? You dare to reach out and scoop it up.
If you dare to touch it, I'll chop off your hand!
As for Berezovsky's downfall, it didn't really make Wang Xiao and Ivanov overjoyed; at most, their reaction would be just an "Oh."
If there is no Berezovsky, there is Berezovsky.
Money never sleeps, and neither does power.
Besides—was Berezovsky really finished?
Ivanov couldn't stand seeing Yura having so much fun by himself. Feeling a bit embarrassed, he had to remind his friend, "What's wrong with Berezovsky? Don't forget, he still owns the bank and has the largest stake in Channel One."
Can a tycoon who is both wealthy and able to control public opinion be considered to have suffered simply because he missed out on one opportunity?
That's a really high bar for being considered miserable.
Yura choked for a moment, then became excited again: "Then let's beat a dog when it's down and take the opportunity to get his shares in Channel One as well."
Channel One is the president's private channel; without it, Berezovsky would truly be forgotten.
Ivanov shook his head, shattering his wishful thinking: "Impossible, the president will not allow such a thing to happen."
Yura looked bewildered: "Why? He's been too clever for his own good and has already offended the president."
We should strike while the iron is hot and kill him.
"But he has already been punished; Siberian Oil Company was his punishment."
Ivanov could only sigh, "Now, for the president, it's a matter of using both carrot and stick, trying every possible means to unite all forces that can be united. Strictly speaking, Berezovsky only made a mistake, not completely betrayed and framed the president."
He explained to his friend in great detail, "As everyone knows, he's a favorite of the Kremlin. If he's completely condemned to the deepest abyss by the president just for this one mistake, what will other people think?"
Yura pursed her lips.
What should one think? Naturally, the president is capricious, harsh, and cruel, and those around him are easily offended.
Ivanov added, "Moreover, the sudden fall of a prominent figure like Berezovsky into the depths of despair will lead to another speculation: that he directly betrayed the president."
"Even his close associate, Berezovsky, whom he had helped and promoted, betrayed him, which shows how unpopular he was."
Ivanov sighed and added, "Then wouldn't he become Gorbachev?"
If we're talking about the most important person in the career of the current master of the Kremlin, it has to be Gorbachev.
To be betrayed by someone you've personally promoted—isn't history repeating itself?
Russians who personally experienced the collapse of the Soviet Union will only feel that the boomerang has finally struck the president himself when they see this scene.
Yura stared at Ivanov with her mouth agape in astonishment.
A subtle emotion flowed through his heart; he even felt that he didn't recognize his childhood friend anymore.
Ivanov, however, seemed oblivious to his subtle emotions, continuing to sigh, "Besides, not just anyone can control Channel One. Berezovsky's anti-corruption campaign on Channel One, wresting advertising revenue back from the red managers, is enough proof of his competence. Besides—"
He muttered to himself, "Even a big shot like Berezovsky didn't benefit from the first round of the equity-for-loan auction. Doesn't that just prove the president's fairness?"
He pointed to himself, "The one who took over Siberian Oil Company is someone like me, a third-generation Red, who is well known to the President as someone he dislikes. It's also the Kremlin releasing a message that regardless of background, the President is willing to cooperate with them."
With the Communist Party of the Russian Federation gaining momentum, the power of those with a communist background is also crucial for the president.
We'll try to win over as many as we can.
Yura was unwilling to accept that the president had not given up on Berezovsky.
He frowned and said, "But if he's so disrespectful to Berezovsky, isn't he afraid that Berezovsky will hold a grudge and retaliate?"
"So Channel One is still in Berezovsky's hands."
Wang Xiao stared at the scenery outside the window for a while, then finally got bored and casually picked up the conversation, "The president didn't go all out, but gave him a chance to redeem himself. As long as he puts in enough effort in next year's election, he can naturally make a comeback."
Using both kindness and severity is a common tactic for those in power to manage their subordinates.
The saying "slap me and then give me a red date" often makes subordinates more loyal, more hardworking, and less likely to have disloyal thoughts.
Yura suddenly felt disgusted; it was all about tactics and weighing pros and cons, with not a trace of fairness or justice.
His excitement vanished like the tide, leaving behind a look of weariness and a listless demeanor. He muttered to himself, "The election, another election."
Lyuba, with her eyes downcast and seemingly oblivious to her own thoughts, felt that Yura's behavior was as ridiculous as that of an unreasonable child.
God, who does he think he is?
Apart from Mr. Ivanov, what boss would have the patience to coax someone else?
Seeing him throwing a tantrum, Wang Xiao couldn't help but laugh and cry at the same time: "Isn't your core goal in exchanging equity for loans to prevent the red factory director from continuing to hold power and for the Communist Party to come back to power?"
Yura blurted out, "No, our goal is to find cash for the budget."
The so-called equity-for-loan scheme was implemented because the government was short of funds. They had no choice but to use the 51% state-owned shares in these large companies as collateral to auction off loans.
Wang Xiao raised her eyebrows: "Oh, so you don't actually care whether the president can be elected next year?"
Yura's face scrunched up in a grimace.
Theoretically speaking, as a liberal official, he should welcome everyone to bid for 51% of the shares.
Free competition is the foundation of his political and economic philosophy.
But they also knew perfectly well that the government was implementing the equity-for-loan program in the hope that the successful bidders would side with the current government and support the president's re-election.
Therefore, when pressed by Wang Xiao, he could only give a vague answer: "These two things are essentially the same thing. On the one hand, we need to obtain the budget cash, and on the other hand, we need to ensure the stability of the government and prevent the economic reforms from being undermined by the Russian Communist Party."
“No.” Wang Xiao raised his finger and shook it. “These are two things, two purposes. Have you forgotten what I said? Never try to walk on two legs at the same time; you must walk one in front of the other.”
Yura had been repeatedly rejected since he got on the bus, and the frustration made him increasingly anxious. He blurted out, "You say you believe in win-win situations, so why can't we?"
Ivanov said irritably, "God, my dear friend, the people are already thankful if you can do one thing well. How dare we expect you to kill two birds with one stone?"
As the car turned, Yura was caught off guard and fell backward, becoming even more furious: "Hey! Ivan!"
Wang Xiao sighed, feeling utterly helpless: "Because the two purposes you mentioned are inherently contradictory."
She reminded Yura, "Don't forget, why was Berezovsky disqualified from participating in the Siberian Oil Company's auction?"
She didn't even bother to wait for him to think, and gave the answer directly: "Because he doesn't have enough money, and he failed to secure investment from foreign consortia."
Her fingers tapped lightly on the back of the chair in front of her, a tapping sound like it was striking Yura's heart. "This isn't just his predicament; it's a problem faced by all Russian bankers. He can't raise enough funds, and neither can anyone else. So how are they supposed to participate in the auction and win? How are they supposed to become the president's staunch supporters in the business community?"
Yura paused for only a moment before quickly giving his answer: "They'll form an alliance and lend each other money. Didn't Smolensky help Berezovsky get the money to buy the Siberian Oil Company?"
"And then?" Wang Xiao pressed. "Doesn't Smolensky want to participate in the auction and get a share of the pork? If he does, where will his money come from? Which Russian banker doesn't want a piece of the pie from this feast? But they only have so much money in their pockets. When everyone pools their money to give to A, it means they can't give B that much money. So how are they going to ensure everyone gets a table to eat?"
Yura was truly stunned this time.
He and his superiors were focused on getting the auction money into their accounts; they didn't care where the money came from, nor did they have the energy to investigate.
In a market economy, the government shouldn't interfere too much.
If Wang Xiao hadn't been injured and still hadn't fully recovered, he really wanted to meet the requirements.
She had never seen a more chaotic market economy than Russia's; in fact, even Romania was better.
"Sir, what you should be focusing on now is whether the money that went into the auction account originally belonged to you. Also, after it went into your account, will it only stay for a few days and then disappear without a trace, turning the money used to buy Company A into money used to buy Company B?"
Yura was startled and instinctively denied it: "That's impossible."
If that's the case, what's the point of the auction? Where will the government get the cash it needs for its budget?
Wang Xiao was utterly speechless. What was impossible? Russia's financial system was so chaotic that nothing was impossible.
Ivanov chimed in from the side, "If you don't do it this way, how can you guarantee that the person who wins the auction will be a staunch supporter of the president?"
Whether to prioritize the economy or politics, you can only ever prioritize one.
Wang Xiao reminded Yura, who was already in a state of confusion: "You must immediately distinguish between primary and secondary objectives and figure out what your main goal is. If you want everything, you may end up with nothing."
The interests of businessmen and politicians are never aligned.
The bankers carefully selected by the Kremlin and the cabinet are unlikely to be working toward the same goal.
Ultimately, the president and the government have different interests, so what kind of unity can be expected?
Yura frowned and left in a hurry without even going back to the villa with Wang Xiao and the others to celebrate.
He had always known that the equity-for-loan scheme was too rudimentary, but he never expected there to be such a huge loophole in it.
They finally decided to abandon the principle of fair competition and sell off state assets as quickly as possible in order to raise money to maintain the normal operation of the government.
If they can't even raise this much money, then all their efforts have been in vain, wouldn't it be utterly ridiculous?
Wang Xiao is lucky she can't read minds, otherwise she would definitely roll her eyes to the heavens.
Hey! You guys are actually afraid of making a fool of yourselves? Aren't you always the comical ones?
Starting with the auction of the Siberian Oil Company, a new round of privatization is gradually reaching its climax.
Wang Xiaohe and Ivanov were naturally not satisfied with just taking over West Oil. They had already entered the fray and had the opportunity to reach out, so why not take it?
Then they witnessed what truly outrageous maneuvers looked like.
First, the management of oil companies publicly warned outsiders in the media not to easily participate in their company's auctions, otherwise they might encounter unpredictable consequences, such as sudden damage to production facilities, large-scale worker strikes, and so on.
In developed capitalist countries in Europe and America, this level of threat would be enough to lead to prosecution of management.
But this is Russia.
In 1995 Russia, no one talked about the law; everyone had to grit their teeth and admit that even a powerful dragon couldn't suppress a local snake.
Some banks that were initially interested were scared off and gave up immediately.
Those who were more tenacious and didn't want to miss the opportunity, such as the Wuzhou Group, experienced something utterly baffling afterward.
On the day of the auction, the only airport in the auction location suddenly announced that it would be closed due to weather conditions.
As a result, all the companies that were preparing to depart from Moscow and participate in the auction went into a frenzy.
Keep in mind this was 1995! Did they not fly there to participate in the auction? Did they grow wings and fly there themselves?
Moreover, if we switch to the train now, it's too late, absolutely too late. The train takes a whole day to reach the destination.
At this point, everyone put aside their internal strife and quickly united to demand that Chubais postpone the auction date immediately, at least until they arrived in Surgut.
This time, however, Chubais refused their request.
The reason given is that the so-called force majeure due to weather conditions simply does not exist.
If they valued this matter enough, they should have allowed ample time to prepare beforehand, instead of rushing off just before the auction was about to begin.
Everyone wanted to curse God. What a joke! You make it sound so easy.
Who the hell doesn't know how powerful the mafia in Surgut is?
They need to arrive a day early, so they'll have to stay in a hotel, right? But who knows if the local hotels are rip-offs? Maybe on the day of the auction, all that'll be left are their corpses.
Chubais still refused, believing these were all excuses and meaningless.
Wang Xiao made a quick decision and walked away: "Don't argue with Chubais anymore. We asked them not to postpone the auction, and now they can use the same words to shut us up."
So what should we do?
“Let’s take a helicopter,” Wang Xiao decided immediately. “We’ll ask Punoning for help and request military or police helicopters from the Ministry of the Interior or the tax police to take us there. We’ll pay for the helicopters and their protection.”
Wuzhou Group owns aircraft, but how can the value of civilian aircraft compare to that of military and police aircraft?
The fact that local oil companies can shut down airports directly demonstrates their immense power.
If they rush in rashly, they might really end up stuck in the blizzard in Surgut.
Punonin answered the phone, immediately arranged everything, and personally led them onto the plane.
Wang Xiao felt unusually embarrassed and politely said, "Sir, it's really too much trouble for you. Please make yourself at home if you're busy."
Punoning plopped down in his airplane seat and said irritably, "How could I possibly be as busy as you guys? I've always been your bodyguard."
When you're under someone's roof, you have to bow your head.
Ivanov smiled broadly and said, "My dear Vlamikil, you are like a mountain, always protecting us and being our strongest support."
Punonin glanced at him, a forced smile on his face: "Really? This is the first time I've ever known I have such a high status."
Seeing that Ivanov was about to rack his brains again with all sorts of cheesy and sentimental talk, he preemptively felt that he couldn't take it anymore and quickly called a halt in advance, "Alright, I was going to go and check the tax work anyway."
As he spoke, his discontent grew. "Tax evasion and tax avoidance are rampant among businessmen. Everyone is desperately stuffing money into their own pockets, unwilling to pay taxes, and then they complain that the government doesn't provide them with enough services. Do you expect government agencies to live on air?"
Wang Xiao and Ivanov knew he was implying something, so they immediately shrank back obediently, not daring to say a word.
Because they are also on Punoning's tax blacklist.
Seeing that they were both playing dumb, Punonin's gaze was still like a knife, cutting across their faces. Ivanov couldn't take it anymore, gritted his teeth, and made up his mind: "Alright, alright, dear Vladimir, we will conduct a thorough internal audit to see if there are any taxes that have been missed, and then hand them over as soon as possible."
“One hundred million US dollars.” Punonin slowly took off his gloves, raised his right index finger, and made his demand directly, “At least one hundred million US dollars in back taxes.”
Ivanov nearly jumped up on the plane, his eyes wide: "One hundred million US dollars? Vladimir, my dear Vladimir, isn't that a bit too much? You know, we're short of cash right now."
The tax police major general narrowed his eyes slightly, looking at them meaningfully: "Would you like me to help you recall how much the fines for tax evasion should be?"
He threatened, "I now think one hundred million dollars is too little, it should be at least two hundred million."
“No, no, no.” Ivanov couldn’t take it anymore and could only grit his teeth and agree, “One hundred million US dollars it is, but the timeframe must be extended. We’re using all the cash we can spare for the auction.”
The starting bid for a 40.12% controlling stake in Surgut Petroleum, which they participated in today, was a whopping $88 million. That's a considerable sum of cash for any large conglomerate.
Punonin finally took pity on you and reluctantly nodded: "Alright, I can give you some time, but the money must be paid by the end of the year."
As he spoke, he closed his eyes and leaned back in his chair to rest.
From the side, his face is as resolute as a statue.
Wang Xiao and Ivanov exchanged a glance. What else could they do? They could just close their eyes and go to sleep.
They want to take advantage of the tax police major general's influence; they'll definitely have to pay a price.
This is the price we have to pay; it's really painful.
Before falling asleep, Ivanov covered his chest with his hand and whispered to Wang Xiao, "Vlamikil wasn't like this before. He's getting more and more cunning. He's so good at seizing opportunities."
His estimate of how much the government can directly raise through this equity-for-loan auction remains questionable.
The tax police, on the other hand, will surely reap a huge profit this time.
All merchants who want to participate in the auction, even if it means incurring significant losses, must hand over the money to avoid being unable to attend the auction at a crucial moment.
Wang Xiao chuckled softly, looking at her neatly trimmed nails: "Isn't this nice?"
This shows that he has gradually grown into a qualified politician and has finally learned to use others' strengths against him and act opportunistically.
That means she'll have far fewer things to worry about and have to follow him around in the future.
The helicopter's rotors stirred up the clouds and the sky, which was a hazy, endless gray.
Everyone was happy.
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