The scheme has been perceived by many as unfair and fraudulent, and it is the loans-for-shares scheme that gave rise to the class of Russian business oligarchs, who have concentrated enormous assets, further increasing the wealth gap in Russia and contributing to the political instability. Furthermore, in the medium-term, this scheme significantly hurt Russian growth since the oligarchs realized that their purchases could be seen as fraudulent by future governments and thus they attempted to strip assets from the government enterprises rather than build th…―Loans for Shares‖ Revisited Daniel Treisman1 Abstract The ―loans for shares‖ scheme of 1995-6—in which a handful of well-connected businessmen bought stakes in major Russian companies—is widely considered a scandalous affair that had disastrous consequences for the Russian …The "loans for shares" scheme of 1995-6--in which a handful of well-connected businessmen bought stakes in major Russian companies--is widely considered a scandal that slowed subsequent Russian economic growth. Fifteen years later, I reexamine the details of the scheme has been perceived by many as unfair, and it is the loans-for-shares scheme that gave rise to the class of Russian business oligarchs, who have concentrated enormous assets, further increasing the wealth gap in Russia and contributing to the political instability. Furthermore, in the medium-term, this scheme …The 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 …Loans for shares scheme - WikipediaLoans for shares scheme - WikipediaLoans for shares scheme - WikipediaLoans for shares scheme - WikipediaBeginning 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 membership Elections First term Second term Post-Presidency 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 reelection. To make the companies profitable, the new investors sought to The "loans for shares" scheme of 1995-6--in which a handful of well-connected businessmen bought stakes in major Russian companies--is widely considered a scandal that slowed subsequent Russian economic growth. Fifteen years later, I reexamine the details of 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 In 1995, facing severe fiscal deficit and in desperate need of funds for the 1996 presidential elections, the government of Boris Yeltsin adopted a "loans-for-share" scheme proposed by banker Vladimir Potanin and endorsed by Anatoly Chubais, then a deputy prime minister, whereby some of the largest state industrial assets (including state-owned shares in Norilsk Nickel, Yukos, Lukoil, Sibneft, Surgutneftegas, Novolipetsk Steel, and Mechel) were leased through auctions for money lent by commercial banks to the government. The auctions were riggedand lac…

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