Beginning in 1995, Boris Yeltsin's government began privatizing state-owned shares in companies through a loans for shares scheme. The scheme helped to fundraise for Yeltsin's 1996 reelection campaign and to restructure the freshly-sold companies at the same time (in order to depose Communists sympathizers). Among figures who have provided the funds were many Bankers (…Beginning in 1995, Boris Yeltsin's government began privatizing state-owned shares in companies through a loans for shares scheme. The scheme helped to fundraise for Yeltsin's 1996 reelection campaign and to restructure the freshly-sold companies at the same time (in order to depose Communists sympathizers). Among figures who have provided the funds were many Bankers (see Letter of thirteen [ru]). The rest included such entities as Stolichny bank (Russian: Столичный банк) and World bank (who made a loan for a small percentage of the Sibneft oil company) and even some targeted investments from USAID in assistance to Chubais. The scheme was primarily overseen by Anatoly Chubais who was linked to USAID program managed by head of the Harvard Institute for International Development ( ). at the time. The scheme implementation ultimately has resulted in emergence of the Russian influential class of enterprise owners who are known as Russian Oligarchs. To make companies whose shared were sold by govt profitable, the new investors sought to restructure them and install a western-style management approach by eliminating red directorate. However, that required them to push out entrenched managers with communist allegiances. This had already become an immensely more cumbersome task once the communists took control of Russia's legislatur…To make companies whose shared were sold by govt profitable, the new investors sought to restructure them and install a western-style management approach by eliminating red directorate. However, that required them to push out entrenched managers with communist allegiances. This had already become an immensely more cumbersome task once the communists took control of Russia's legislature in the 1995 elections and would be made excruciatingly challenging if the communists were to take control of Russia's executive government. Consequentially, in order for the companies to turn a profit, investors felt that the Communists would need to lose the election. The auctions were rigged and lacked competition, being largely controlled by favored insiders with political connections or used for the benefit of the commercial banks themselves. Loans for shares scheme explained. Beginning in 1995, Boris Yeltsin's government began privatizing state-owned shares in companies through a loans for shares scheme. The scheme was primarily overseen by Anatoly scheme benefited Yeltsin in acquiring funds to assist his bid for To make the companies profitable, the new investors sought to restructure them and …Beginning in 1995, Boris Yeltsin's government began privatizing state-owned shares in companies through a loans for shares scheme. The scheme was primarily overseen by Anatoly Chubais. The scheme benefited Yeltsin in acquiring funds to assist his bid for To make the companies profitable, the new investors sought to restructure them and install a western-style management scheme was structured in a manner that made Yeltsin's victory a strong interest of the investors involved. The two-stage program was structured so that the loans would be made before the election, but the auction of the shares could only take place after the election, making it of financial concern for them that Yeltsin would win the for shares scheme. Beginning in 1995, Boris Yeltsin's government began privatizing state-owned shares in companies through a loans for shares scheme. The scheme was primarily overseen by Anatoly Chubais. The scheme benefited Yeltsin in acquiring funds to assist his bid for To make the companies profitable, the new investors sought to restructure them and install a western Loans for shares scheme - WikipediaLoans for shares scheme - WikipediaLoans for shares scheme - Wikipedia
