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As the Soviet Union was disintegrating, the KGB carefully preserved its network of influence.

Catherine Belton posits that the KGB foresaw the collapse of the Soviet Union. Operatives from the foreign intelligence community were actively establishing the foundation. They recognized that the Soviet Union's structure could not be maintained and began to formulate plans to maintain their power amidst the rise of Western dominance.

The adoption of market principles was seen as essential by the Soviet intelligence agency to further their geopolitical ambitions, acknowledging that economic reform was necessary.

Belton illustrates that specific individuals within the Soviet spy agencies, especially those involved in overseas operations or departments concentrating on foreign intelligence and economic violations, recognized the flaws in the Soviet economic system before Mikhail Gorbachev introduced his policy of restructuring. Understanding that the Soviet Union's controlled economy was a barrier to matching the technological progress of the West, and recognizing that the heavy military spending was depleting the nation's resources, they concluded that significant reforms were essential to ensure the nation's survival.

During the period of perestroika reforms under Gorbachev, a new class of entrepreneurs emerged, presaging the eventual emergence of business magnates poised to collaborate with future efforts to control the Russian economy.

Belton demonstrates how these visionaries leveraged Gorbachev's economic reforms of 1985, termed perestroika, to introduce market-based elements into the Soviet framework, seeing it as a chance to foster a new class of businesspeople they could sway. Initially, they tacitly allowed the activities of the clandestine business operators, referred to as tsekhoviki, during the late 1980s, by disregarding their participation in unauthorized foreign currency transactions, managing networks involved in sex work, and engaging in commerce involving scarce commodities, which were hard to come by because of the planned economy's limitations. They understood that these efforts were crucial in strengthening the weakening economy by making up for the shortcomings of the state's distribution network. This became a proving ground for their later efforts to control the economic sphere of Russia through a cadre of seemingly independent yet government-steered wealthy industrialists. The author emphasizes that the market, which was supposed to be set up within the Soviet framework, was misrepresented from the beginning.

They created a hidden economic network that facilitated the movement of assets toward Western nations through collaborative firms and dependable custodians.

Belton highlights the tactics employed by the Soviet intelligence system, which were initiated long before the fall of the regime, focusing on the transfer of state assets and funds to Western territories via a consortium of associated companies and go-betweens, mirroring the methods used in the 1970s to obtain technology and military hardware. In the context of Gorbachev’s...

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Putin's People Summary Putin's rise to power marked a significant transition, with Yeltsin's influence waning and his associates from the security services gaining prominence.

Belton details the covert and forceful tactics that paved the way for Putin's rise to power, which encompassed investigations into corruption, secret surveillance, and the use of defamatory media campaigns. She explores a multifaceted web of fear, ambition, and cunning tactics, which led to the Yeltsin Family's initial efforts to mitigate the threat posed by the prosecutor general by fabricating charges and obtaining incriminating evidence through collaborators in the security services. Later, as the investigation's breadth became increasingly alarming, they reluctantly chose Putin as Yeltsin's successor, believing he would be easier to control than his contemporaries who also had backgrounds in the Soviet intelligence agency.

The Mabetex scandal was a significant factor in accelerating the erosion of Yeltsin's influence.

Belton describes the series of events that began with the Kremlin's refurbishment contract given to Mabetex, a Swiss company, which altered the balance of power within Yeltsin's circle, prompting the Yeltsin Family to swiftly strengthen their control, an action that set the stage for Putin's rise to the Russian presidency. During the extensive...

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Putin's People Summary Putin aimed to restore Russia's influential position and control.

Following his rise to power, Belton outlines how Putin and his colleagues with KGB backgrounds increasingly centralized control. She outlines how, during Yeltsin's tenure, freedoms were progressively undermined, starting with the stifling of independent media, moving on to the purging of opposition in the legislature, and eventually leading to the halt of elections for regional governors. Throughout her disclosures, she unveils the commencement of measures designed to reestablish stringent state control reminiscent of the Soviet era.

The Russian government created a structure reminiscent of medieval times, where the tycoons of the Yeltsin era could preserve their fortunes solely by showing unwavering loyalty to the Russian federation.

Belton contends that Putin and his KGB colleagues effectively diminished the influence of the independent oligarchs who had been influential in the 1990s, thereby asserting control over the media tycoons. Upon taking office, Putin's goal was explicitly not to merely diminish the oligarchs' power but to completely eliminate their societal layer. Meanwhile, the intelligence veterans within his inner circle harbored deep resentment from the...

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Putin's People Summary The administration's intentional sabotage of legal principles and independent entities.

Belton portrays Putin's reshaping of Russia as a process where his former KGB colleagues endowed the country with an outward appearance of modernity. The oligarchs, judiciary, and parliament underwent a transformation into nominal bodies whose primary role was to further the objectives set forth by the Russian leadership. KGB agents wielded their influence subtly, managing events from behind the scenes in a manner that remained undetected by Western intelligence agencies for a considerable amount of time.

The lasting impact of the Khodorkovsky case on Russia's judicial framework and its economic environment.

Catherine Belton's in-depth analysis uncovers how the Khodorkovsky trial considerably undermined the democratic frameworks of Russia, particularly impacting its legal institutions, and strengthened the influence of security agencies, which subsequently increased their secretive financial activities. The lawsuit was a critical moment where the government overtly demonstrated its exploitation of judicial procedures and the erosion of democratic principles to benefit the tight circle at its core. The case became a blueprint for how Putin's men would use their power to...

Putin's People

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