A dispute between one of the richest Russians, Alexei Mordashov, and the governor of the Vologda region, Georgy Filimonov, has become a telling example of how relations between business and government have changed in Russia. This is reported by Bloomberg, writes UNN.
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According to Bloomberg, the reason for the conflict was Governor Filimonov's decision to ban the hiring of migrants for construction, which affected the interests of Severstal, owned by Mordashov. In particular, the company is the largest taxpayer and employer in the region.
After the company complained, the official changed his position, but in a public interview, Filimonov allowed himself harsh statements, in particular, he called the conflict a "squabble in the style of Beavis and Butthead."
The dispute between the fifth richest person in Russia, whose fortune, according to the Bloomberg Billionaires Index, is $22.5 billion, and the governor is another sign that billionaires have lost their status as oligarchs.
The decline in the power of magnates began after Putin came to power more than two decades ago. And at a time when many of them were sanctioned for the full-scale invasion of Ukraine, they retained mostly limited influence on politics.
Since then, the Russian leader has sought to create a "new elite."
Billionaires have finally ceased to be oligarchs or the most influential people even in their regions
"They have finally become asset owners and are heavily dependent on the will of the Kremlin," she added.
According to the source, the Kremlin sent a strong signal that governors should ensure that businesses spend their income on investment rather than dividends, and with an emphasis on social needs. At the same time, refusals and complaints are not always accepted, given that the Kremlin is busy with the war.
According to another source, governors usually depend on business, but business should also remember regional leaders who complain to the Kremlin. The media notes that some consider the situation between Filimonov and Severstal unique.
In most regions of the Russian Federation, there are partnerships between key enterprises and local officials, said the head of one of the largest Russian companies with assets in several regions.
The old elites are becoming hostages to the reformatting of the regime against the background of the war," said Maria Snegova, a senior fellow on Russia and Eurasia at the Center for Strategic and International Studies. "It is no longer possible to remain neutral