State and Business (and Moral) Corruption

In a country like Russia, the state and business are often in bed with each other. As are bosses and employees, according to the Anti-Corruption Foundation (FBK).

FBK, which late anti-corruption activist Alexey Navalny started, recently published an investigation into a handful of state oil company Rosneft employees who apparently have very close relations with its head, Putin ally Igor Sechin.

According to the report, Sechin, 64, maintains a "harem" of approximately a dozen beautiful young women, lavishing them with jewelry, luxury cars, and trips in his private jet. Yet these ladies are reportedly merely part of Rosneft and receive their pay from state coffers.

FBK's investigation tracked these women from escort websites to Rosneft's employee rolls. At Rosneft, they hold positions as "specialists" in business management departments and earned starting salaries over R300,000 ($3,045), more than twice as high as experienced Rosneft lawyers, engineers, and economists earn. By comparing profile photos on these websites with employee information, FBK was able to connect the two sources. Some even still have police files for prostitution.

Further evidence of Sechin's "harem" can be found on social media. One woman, Albina Ivanova, posts prodigiously on Instagram. She was hired by Rosneft in 2016, shortly after her 21st birthday, and officially specializes in oil production.

Since then, she has posted from luxurious locations around the globe: New York, the Maldives, Courchevel, and more, invariably wearing only the most expensive clothing brands. Other photos show her en route on a private jet (with a Pomeranian dog), or posing serenely on the back of a large yacht.

FBK researchers found that, often, Ivanova's trips shadowed Sechin's, drawing the ironic conclusion that she must be dutifully accompanying her boss on strenuous work trips. Publicly available flight data shows Sechin's private jet in London and Rome at the same time as Ivanova posted from there, and photos from South Africa, Azerbaijan, and China correspond to Sechin's work itinerary as published in international news outlets. FBK concludes that, over nine years, Sechin and Ivanova have made 58 private jet trips together.

Ivanova's luxury lifestyle at home implies only further grift. She owns three cars that far outstrip her official salary: a Mercedes G-Wagen (valued at R40 million, or $406,000), a Porsche Taycan (R20 million, $203,000), and a Rolls Royce (also R40 million).

She has also posted photos with expensive items, such as a collection of 25 Hermes handbags. These bags are not available on the open market, but the collection can be estimated at R104 million in total ($1,055,000). There's also her Graff diamond jewelry: a 20-million-ruble bracelet ($203,000), 7-million-ruble earrings ($70,000), and a 22-million-ruble watch ($220,500).

And in case the connection seems tenuous, FBK also uncovered Ivanova's living arrangements: a luxury apartment in Moscow officially owned by the son of one of Sechin's close friends, which was once occupied by another young, female Rosneft employee.

All of these are apparently "gifts" from Sechin, and, by extension, Rosneft, a piece of the Russian state.

The story, if true, is not only shocking, but enraging. As Russia's War in Ukraine grinds on and economic uncertainty and inflation wrack the Russian people, Putin's closes allies spend billions of rubles on their mistresses' luxury lifestyles.

The narrative is striking: Plenty of cash for Sechin's girlfriends, but none for the everyday Russian.

A video investigation can be seen here.