A look at power in modern Russia, from oligarchy to autocracy.
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Putin came to power thanks in no small part to the original class of oligarchs, who got ostentatiously rich through crooked privatization deals during the presidency of Boris Yeltsin. These oligarchs created and bankrolled what became Putin's political party, Unity, the predecessor to what is now called United Russia. They engineered President Boris Yeltsin's stunning comeback victory in the 1996 presidential elections. Without this victory, Yeltsin could have never appointed Putin as his prime minister, a position that proved to be Putin's launching pad for his presidential bid. The oligarchs helped fuel Putin's meteoric rise. Two of them, Vladimir Gusinsky and Boris Berezovsky, deployed their television stations and newspapers to turn Putin from an unknown figure into a household name.
But Putin was a shrewder politician than they initially realized. When Putin's 2000 presidential election campaign heated up, he began paying lip service to Russia's hatred of the oligarchs and the corrupt deals that enriched them. Shortly before election day, Putin was asked by a radio station how he felt about the oligarchs. If by oligarchs, he said, one meant those who "help fusion of power and capital — there will be no oligarchs of this kind as a class."
But, once in power, Putin didn't actually eliminate the oligarchy. He only targeted individual oligarchs who threatened his power. He first aimed at Vladimir Gusinsky, the rare oligarch who built most of his wealth from scratch as opposed to merely taking over extractive industries that once belonged to the government. Back in the mid-1980s, Gusinsky was a cab driver with broken dreams of directing plays in Moscow's theater scene. When the Soviet Union began allowing entrepreneurship in the late 1980s, Gusinsky made a small fortune making and selling copper bracelets, which were apparently a big hit with Russian consumers. In the early 1990s, he flipped buildings in Moscow's burgeoning real estate market and started a bank. By 1993, he had enough money to start a newspaper and Russia's first private television station, NTV.
Tolerated under Yeltsin, NTV ran programs — including a satirical puppet show — critical of the Kremlin. When NTV newscasters — and puppets — began criticizing and making fun of the newly elected president, Putin slammed down his iron fist. In 2000, armed agents in camouflage and ski masks raided NTV's offices. The government alleged Gusinsky stole $10 million in a privatization deal. Gusinsky was jailed and then fled overseas. A state-controlled energy company, Gazprom, ended up buying NTV in a hostile takeover. Rest assured, Putin doesn't have to worry about puppets making fun of him anymore.
