Once Upon a Time in Russia

The Rise of the Oligarchs—A True Story of Ambition, Wealth, Betrayal, and Murder

Ben Mezrich

• Publisher: Atria Books
• Year: 2015
• ISBN:
  9781476771915
• Topic: History
• Subtopic: Russian History
• Index: History

The New York Times bestselling author of Bringing Down the House and The Accidental Billionaires tells his most incredible story yet: A true drama of obscene wealth, crime, rivalry, and betrayal from deep inside the world of billionaire Russian oligarchs that Booklist called "one more example of just how talented a storyteller [Mezrich] is." Meet two larger-than-life Russians: former mathematician Boris Berezovsky, who moved into more lucrative ventures as well as politics, becoming known as the Godfather of the Kremlin; and Roman Abramovich, a dashing young entrepreneur who built one of Russia's largest oil companies from the ground up. After a chance meeting on a yacht in the Caribbean, the men became locked in a complex partnership, surfing the waves of privatization after the fall of the Soviet regime and amassing mega fortunes while also taking the reins of power in Russia. With Berezovsky serving as the younger entrepreneur's krysha —literally, his roof, his protector—they battled their way through the "Wild East" of Russia until their relationship soured when Berezovsky attacked President Vladimir Putin in the media. Dead bodies trailed Berezovsky as he escaped to London, where an associate died painfully of Polonium poisoning, creating an international furor. As Abramovich prospered, Berezovsky was found dead in a luxurious London town house, declared a suicide. With unprecedented, exclusive first-person sourcing, Mezrich takes us inside a world of unimaginable wealth, power, and corruption to uncover this exciting story, a true-life thriller epic for our time—" Wolf Hall on the Moskva" ( Bookpage ).

PART ONE

A good man, maybe. But it’s best to shoot him.

—OLD RUSSIAN PROVERB

CHAPTER ONE

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July 2000,

Kuntsevo Dacha, Fili District

THE SILENCE WAS EXCRUCIATING, the minutes ticking by thick and heavy, time itself gorging on the tension in the humid air. Even though the shades had been drawn back from the trio of windows pocking the long plaster walls of the cavernous dining room, it was impossible to tell how deep into the afternoon the day had drifted; the dense forest that surrounded the isolated, two-story compound cast deep shadows across the reinforced glass panes, shifting whatever remained of the bright summer light toward an ominous, gunmetal gray.

For the eighteen middle-aged men in dark suits shifting uncomfortably in their seats as they waited in that palpable silence around an oversize dining room table, it was hard to believe that they were still technically within Moscow’s city limits. Though, to be fair, this aging, stone house tucked in the middle of the dark woods, surrounded by a pair of chain-link fences topped by barbed wire, was a symbol of a much different Moscow than the rapidly growing metropolis beyond the wire. The men in this room had traveled back in time more than fifty years the minute they had been ushered out of their chauffeured limousines—now parked in glistening rows behind the double fences—and led through the dacha’s front door.

The setting of the meeting was not lost on any of the men. The invitation that had been delivered by official courier to each of them in the preceding weeks had been met by everything from incredulous laughter to expressions of suspicion. Every soul knew what this place was: whose house this had once been, and what had supposedly taken place here. None of the men looked carefully into the shadows that played across the aging walls, darkening the corners of the vast, high-ceilinged room.

Even though this house had fallen into disuse a generation ago—and was now more museum than functioning dacha—the meeting’s address had meaning far beyond the invitation itself. And the longer the men were forced to wait for whatever was going to happen next, the more ominous the setting seemed.

Under the best of circumstances, these men were not accustomed to waiting. To describe them as powerful businessmen—or even billionaires—would have been a laughable understatement. Among them, they represented the largest—and fastest—accumulation of wealth in modern history. Within the Russian media, they had garnered the label Oligarchs—a term that was usually derogatory, defining them as a class apart and above. According to the popular notion, over the course of the past decade, as the former Soviet nation had lurched into capitalism through a complex, often shadowy process of privatization, this class—the Oligarchs—had accumulated insane riches, and they had used this wealth to imbed and twist themselves, like strangling vines, into the ruling mechanisms of the nation’s government, economy, and culture.

Most of the men in this room would have bristled at the designation. If anything, they saw themselves as representatives of the new, free, and modern Russia. Almost all of them had come from poverty; many had clawed their way out of childhoods filled with deprivation and prejudice. Many at one point had been mathematicians, scientists, or academics before they had turned their ambitions to business. If they had succeeded—and yes, as a group they had succeeded to a degree perhaps unique in history—it was despite the chronic corruption and cronyism of the shifting Russian paradigm, not because of it.

Oligarchs or not, men who earned billions were not known for their patience. Eventually, the silence got the better of the room, and one of the invitees, seated closest to the door that led back into the interior of the house, cleared his throat.

“If some Chechen managed to get a bomb in here and blew us all to hell,” he asked, “do you think anyone would mourn?”

Awkward laughter riffed through the room, then trickled away into the shadows. The macabre joke may have hit too close to home. Whatever the men thought about themselves, it wasn’t exactly the best time to be a billionaire in Russia. Worse yet, the idea of a bomb going off in the dining room of such an ominous address wasn’t as far-fetched as they would have liked to believe.

Before anyone could break the silence again, there was a rush of motion—a door opening on the far side of the dining room. The air seemed to tighten still further, like a leather strap suddenly pulled taut. After a brief pause, a lone man entered through the doorway. Head down, every step and movement controlled and determined, from his forceful, athletic gait to the way his lean, muscled arms shifted stiffly at his sides. Short of stature—five foot seven at the most—with thinning hair, pinpoint eyes, a narrow, almost daggered jaw—his presence was somehow well beyond the amalgamation of his parts. As he strolled in, warmly shaking each man’s hand in turn, none of the billionaires at the table could have turned away even if they had dared. He didn’t just project an imposing aura: he was a mystery, an unknown, and these gathered businessmen had built their lives—and fortunes—on their abilities to procure and use knowledge. Even though some of them had been responsible for their host’s ascension to power—had in fact hand-picked him for the role he now played—they had done so without knowing much about him. In truth, that had been one of his main selling points. He was purposefully obscure, a supposed nobody—a loyal cog. They had thought that a man like that would be easy to control.

There was nothing easy about him as he took position at the front of the room, facing the table.

And then he smiled.

“Добро пожаловать.”

A warm welcome, my colleagues.

He looked around the room, matching each of the gathered billionaire’s eyes.

“Some of you supported me,” he continued, his voice low and steady, as he paused on a few of the staring faces.

“Some of you did not.”

Again, he lingered on a handful more.

“But none of that matters now. You have done very well for yourselves. You have built vast fortunes.”

He waited, the room as silent and still as a pane of glass.

“You can keep what you have. Business is important. Industry is important. But from here on out, you are simply businessmen—and only businessmen.”

Before any of the men could react, there was another flash of motion—and then a group of lower-ranking officials took over, ushering a team of butlers into the room, each carrying a tray laden with porcelain and gold tea settings. Collective relief moved around the table; at the same time, it dawned on most of the men in the room that they had made an immense miscalculation. This loyal nobody, this obscure cog had become something else. Every moment of the meeting had been choreographed, from the very moment he had invited them here, to this place, imbued with so much brutal meaning.

Just a few yards down, off the hall now bustling with servers carrying tea into the dining room, were the study and living quarters where Joseph Stalin had spent his final two decades. This house—Stalin’s Moscow home—had been the symbolic headquarters of the most infamous, powerful, and brutal regime in their nation’s history.

And Vladimir Putin—the man at the front of the room now trading niceties with the nearest of his guests, while butlers served tea up and down the dining room table—had just sent them a clear, explicit message.

Putin was not a simple cog they could twist and turn as they wanted.

The Oligarchs had been warned:

You can keep your billions.

But stay out of my way . . .

CHAPTER TWO

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Six Years Earlier

June 7, 1994, 5:00 p.m.,

Logovaz Club, 40 Novokuznetskaya Street, Moscow

FORTY-EIGHT YEARS OLD, DARK hair thinning above bright, buoyant features, Boris Abramovich Berezovsky had the unique ability to appear to be moving, even on the rare occasions when he was standing still. In his more usual state—rushing from one meeting to the next, compact shoulders hunched low over his diminutive body—he was an ambition-fueled bullet train emancipated from its tracks, a frantic dervish of arms and legs.

Bursting out into the covered rear security entrance of his company’s headquarters, a renovated nineteenth-century mansion situated halfway down a tree-lined private road in an upscale section of Moscow, every molecule beneath Berezovsky’s skin seemed to vibrate, as one hand straightened his suit jacket over his pressed white shirt, while his pinpoint eyes navigated the few feet that separated him from his waiting limousine. As usual, the gleaming Mercedes-Benz 600 was parked as close to the door as possible, so that the overhanging concrete eaves provided ample cover. If that wasn’t enough, there was also the hulking bodyguard standing beside the open rear door of the automobile, as well as the driver, nodding through the reinforced front windshield.

The car was already running. Berezovsky was a businessman, and in Russia in the mid-1990s, it wasn’t good business for a man in his position to spend more time than necessary going between office and car. Even here, on his home turf, behind the pre-Revolution manor that he’d painstakingly restored to a state of opulence—lavish interior filled with expensive furniture, impeccably dressed attendants, even an oversize aquarium running along one wall—he had to be cautious.

He kept his gaze low as he hurried toward the car. The covered security entrance was designed to ensure the privacy of those who most needed it; since the entrance was essentially enclosed, it would be impossible for a stray passerby to stroll close enough to see anything. But even if somehow someone had wandered inside the security entrance in time to watch Berezovsky give an officious wink toward the bodyguard and slide his minute form into the backseat of the Mercedes, the pedestrian would have known to look away quickly. Berezovsky wasn’t particularly famous, but he emanated power—from his expensive suit to his frenetic pace. Those who did recognize him might have described him as an entrepreneur. They might have called him a vastly successful car salesman, or a former academic who had turned to finance. All of these things were true—and all of them were laughably insufficient. Even those who knew him well could only hope to scrape the surface of what he was—and the heights toward which his ambition was driving him.

Safely ensconced in the interior of the car, Berezovsky waited for the bodyguard to join the driver up front. Then the car immediately started forward.

Berezovsky tried to relax as the Mercedes navigated away from the curb and entered the sparse, late-afternoon traffic. It was hard for him to believe it was only Tuesday. It had been a long week already. The past forty-eight hours had been filled with meetings, mostly with executives from AvtoVAZ—Russia’s largest car maker, known mostly for its signature automobile, the boxy, functional Lada, affectionately dubbed “the people’s car”—and with Berezovsky’s underlings at LogoVAZ. He’d formed the company five years ago, originally to supply AvtoVAZ’s computer software, but it had evolved into Russia’s largest Lada dealership, with showrooms all over the country. Those forty-eight hours had been full of banal conversations, only made bearable by the sumptuousness of the setting, his Logovaz Club. No matter how busy things got, Berezovsky often made sure that the last appointment of each day took place in the private apartment he kept on the top floor of his headquarters, where a stunning, young girlfriend might keep his top shelf vodka poured and waiting.

Though the meetings had dragged on, and as tedious as the subject matter had been, it was the time between each assignation that Berezovsky hated most. That was why most of his business took place at the club, where he could quickly pirouette between appointments, losing mere seconds in transit. Going off-site meant dealing with the necessary delays of the outside world—traffic, physical distance, the whims and inefficiencies of other people’s schedules. It wasn’t just Berezovsky’s internal wiring that made him miserable at the thought of wasted minutes—the fact that he couldn’t sit still, even with his back against the most luxurious leather that Mercedes could manufacture—it was the knowledge of how valuable every lost minute could be. To him, the Breguet on his wrist didn’t measure time; it kept track of lost opportunities.

Berezovsky was well aware that this impatience was yet another symptom of the seismic shift that had engulfed his world, beginning less than a decade earlier. Impatience, ambition, the ability to dream big and live even bigger—none of these things had mattered in the Russia of his childhood. The best a young, mathematically gifted Jewish kid from Moscow, with no connections among the Communist elite and no knowledge of the outside world, could have hoped for was a doctorate in mathematics from one of the few universities that accepted the less desirable ethnicities. No matter how many awards he’d gone on to win, or papers he’d published, he’d been heading toward a simple, quiet life of books and laboratories.

And then—Perestroika, the lightning bolt that had shattered everything. First, the old world fell in fits and bouts to Gorbachev and, rising parallel to him, Yeltsin. Then a chaotic new world haphazardly emerged, buoyed by an infant form of capitalism that was just now reaching its chaotic teenage years.

Suddenly a man who was good with numbers, could think theoretically and far enough ahead not to get bogged down in the absurdities of the nearly lawless moment—and light enough on his feet to dance over the inevitable aftershocks of a science-fiction-level restructuring of an entire nation from the ground up—suddenly, such a man had a chance at a brand-new future. Being different, being an outsider, the very qualities that had impeded success in a world built behind walls, were a form of insulation when those walls came crashing down.

Berezovsky hadn’t wasted a moment wondering what would come next. He’d turned his attention toward a world where money suddenly had meaning. That, in turn, had led him to what he earnestly believed to be the holiest relic of this new, free, capitalist system his country hoped to become.

Berezovsky grinned as he ran his gaze over the parked cars flashing by on either side of his limousine. Aside from the odd foreign model—mostly German, like his Mercedes, or almost as frequently Japanese, Toyotas and Hondas—the majority of the cars they passed were Ladas. Squat, compact, rugged, and without a hint of glamour or wasted expense, each Lada represented the culmination of a previously unimaginable dream. Perestroika or not, a Muscovite didn’t simply wake up after 1991 with a pile of rubles under his bed, ready to stroll to the nearest car dealership.

In truth, the Lada had become the first symbol of the new, free Russia. Owning a Lada was everything, and to get one a person needed more than money. You also needed knowledge of the right person to bribe.

Berezovsky hadn’t set his sights on owning a Lada; he’d set his sights on the company that made them. Initially, he’d worked with the skill set he’d acquired in his academic life; he’d founded LogoVAZ as a computer software company aimed at solving numerical payment issues for the newly accountable auto conglomerate.

Working his way deeper into the sprawling corporate behemoth, he’d quickly realized that the men who’d been placed in charge of AvtoVAZ were functionaries of the old world: dinosaurs who didn’t understand the economic changes exploding around them. These Red Directors, as the history books would eventually label them, had been handed the reins of major companies across every industry by a government that itself hardly understood the capitalist world that perestroika had unleashed.

In the back of the Mer...