How Vladimir Putin Makes Money: Unpacking the Realities of Russian Wealth

Throughout his long-standing presidency, Vladimir Putin has often been criticized for his wealth and the manner in which it is acquired. While many questions surround the exact amount, it is clear that his personal coffers have been influenced by theRussian state in ways that go far beyond any typical salary or government benefits. This article delves into the mechanisms by which Putin has amassed his wealth and the broader implications of his personal enrichment at the expense of the Russian people.

The State-Sponsored Wealth: A Closer Look

Prior to His Presidency: One of the more curious aspects of Putin's financial situation is the fact that he has never started his own business nor has he worked in the private sector. The majority of his wealth comes from his government salary, both as a KGB agent and later as a prominent politician. While the KGB salary is notably low, his political salary is even more modest, reflecting a significant undercompensation when compared to the private sector.

Comparison with US President: For reference, the US President earns around $400,000 annually, a figure which is significantly lower than the salaries of CEOs of large US companies, who earn around ten times that amount. If Putin had never spent a single ruble from his government salary, his accumulated wealth would still be less than $6 million in interest. Clearly, he has acquired additional wealth outside of his official salary.

The Kleptocratic State: How Putin's Wealth Was Accumulated

The Capo dei Tutto Capos (The King of All Kings): A common analogy is that Putin is the "Capo dei Tutto Capos," the ultimate boss. His wealth and influence allow him to facilitate the enrichment of others, in return for a piece of the profit. This is a Kafkaesque arrangement where those who wish to be wealthy must first have his consent and cannot engage in any conflict with his other clients without his prior approval. While this system appears to be about personal enrichment, Putin's defenders might argue that it maintains stability in a turbulent region.

Properties of the Russian People: Another aspect of Putin's wealth comes from the misappropriation of state-owned resources. Prior to Putin's rise to power, many state-owned businesses were still in place, leftovers from the Soviet era. Instead of selling these at public auctions where the proceeds would go to Russian taxpayers, Putin privatized these businesses for a pittance, often in exchange for massive bribes. This system of acquiring personal wealth at the expense of the state and its people has been known as kleptocracy, where public assets are converted into private gain.

Opposition and Corruption: Limited opposition within the Russian government is common knowledge. The culture of corruption and Putin's security forces, the FSB, have made it exceedingly difficult for anyone to challenge or expose his illegal activities. Putin's immunity to prosecution for crimes against the Russian people is thus well-earned in a system where corruption is pervasive.

Is Putin Working for a Living?

For those who might argue that Putin has a job, it is worth noting that having a job that entails a high table in the State Duma (Russia's parliament) translates to much more than just a salary. High-ranking officials often benefit from a range of perks and privileges, such as accommodations, specialKGB protection, and access to lavish hospitality.

It's clear that Putin's wealth comes from a combination of his official salary, state resources, and the corrupt privatization of state-owned assets. The key factor is his position of power and the ability to make decisions that benefit him personally, often at the expense of the Russian people.

Conclusion

Vladimir Putin's personal wealth is a complex and multifaceted issue that goes beyond a simple salary. His influence in the Russian state and his ability to facilitate enrichment for others while demanding a cut for himself has created a system of kleptocracy that he benefits from. While there are plenty of legitimate jobs available, the truth is that Putin's wealth is deeply intertwined with his role as the leader of Russia and his ability to control the levers of power.