MOSCOW
(AP) -- In the list of presidents, prime ministers, sheikhs,
billionaires and other magnates cited in a sweeping worldwide
investigation into hidden assets in offshore accounts, there was an odd
man out: A Russian cellist.
Up
until now, 64-year-old Sergei Roldugin was known only in the Russian
music community — as a People's Artist of Russia and the artistic
director of the House of Music in St. Petersburg. What makes him stand
out from other Russian musicians, however, is his close ties to
President Vladimir Putin.
Roldugin
features in Putin's early autobiography as a close friend and the
godfather of Putin's eldest daughter, Maria. He pursued a musical
career, and despite the fact that he never became a tycoon like many of
Putin's other friends, he did somehow acquire a stake in the Rossiya
bank, one of the first Russian firms slapped with U.S. sanctions
following Russia's 2014 annexation of Crimea.
The
U.S. Treasury in 2014 described the bank as being "designated for
providing material support to government officials" and co-owned by
members of Putin's inner circle. But unlike other Putin friends who have
built flourishing businesses in Russia, Roldugin, whose stake in
Rossiya was reported at 3.3 percent, was not slapped with sanctions.
A
myriad of documents that the Washington-based International Consortium
of Investigative Journalists gained access to showed Roldugin — or
someone posing as him — skillfully operating affiliated companies that
controlled a significant share of a business empire that earned tens of
millions of rubles per day from murky deals. The companies received
millions from Putin's friends and Russian billionaires as well as
preferential loans from a Russia-controlled Cyprus-based bank.
The
journalists who analyzed the leaked documents from the Panamanian law
firm Mossack Fonseca, one of the world's biggest creators of shell
companies, say the combined turnover of a company that Roldugin is
reported to have owned through an intermediary between 2009 and 2012 was
around $2 billion.
When
the Novaya Gazeta newspaper, which led the ICIJ investigation in
Russia, approached Roldugin after a concert, the cellist had a friendly
chat with the reporter but refused to talk about the offshore companies,
saying the subject was "delicate."
Roldugin was unavailable for comment on Monday. A receptionist at the St. Petersburg House of Music said he was not in.
The
release of what has become known as the Panama Papers has sent
officials in countries around the world scrambling. Some have pledged to
investigate claims of possible tax evasion, others like the prime
minister of Iceland and the president of Ukraine face political storms
over their alleged involvement in offshore companies.
In Russia, however, the trove of documents showing a money trail leading close to the president has gone largely unnoticed.
At
first, Russian state media and pro-Kremlin media ignored the Panama
Papers reports, then some reported only parts of it related to the
Ukrainian president's woes and those of an Argentinean soccer player. A
few hours later, Putin's spokesman Dmitry Peskov blamed Western media
for focusing on Putin even though he was not directly linked to any
offshore activity.
Peskov
suggested the ICIJ had ties to the U.S. government. The ICIJ is part of
the nonprofit, non-partisan Center for Public Integrity.
"It's
obvious that there are many journalists there whose main profession is
unlikely to be journalism," he said, alleging that "former employees of
the State Department, the CIA, other security services" may have been
involved in the publication of the leaks.
Peskov said Roldugin was a friend of Putin's but added the president "has very many friends."
In
past years, as Putin's friends were building fortunes by getting
lucrative state contracts with no or little competition, independent
media in Russia have published countless investigations suggesting a
conflict of interest at the least — or possibly major corruption. These
reports, however, did not lead to any official investigations, Russian
government reshuffling or public discontent.
Arguably
the only exception was last year's protest by truck drivers who rallied
against a hefty new road tax imposed by a company co-owned by a son of
one of Putin's friends.
Russian
experts said even if the offshore scandal was getting coverage on
Russian television, Putin will still come out of it unscathed.
"There
aren't any accounts directly connecting Putin to the companies, but
even if there were, it is unlikely that this would shock his supporters
in Russia," Alexander Baunov of the Carnegie Center in Moscow told The
Associated Press.
Putin's detractors, he said, are looking in the wrong places for problems that could potentially destabilize his government.
What
could be disastrous for Putin? "Anything that brings Russia back to the
1990s," said Baunov, referring to the withholding of salaries and a
slump in living standards.
In
a country where all officials are believed to be corrupt by default, a
revelation of corruption in Putin's inner circle or even his own
misdeeds are not viewed as much of a sin.
"In
a healthy society, all those friends of the national leader would
already be behind bars while the leader himself would be a pariah,"
Dmitry Gudkov, the only Russian lawmaker who voted against the Crimean
annexation said in a blog Monday. "In our (society) the reaction is: 'So
what? He does not drink newborn babies' blood, thanks for this.' We
know things could be worse."
While
Russian opposition activists were fuming on social media about the
Panama Papers revelations, the reports left many more Russians unmoved.
"Seriously,
if someone had posted a photo of Putin watching 'Peppa Pig' it would
have caused more of a stir," blogger Ilya Varlamov tweeted, referring to
a popular cartoon series.
Unlike
the reclusive banker Yuri Kovalchuk or Putin's childhood friend Arkady
Rotenberg, the soft-spoken Roldugin has never hidden from the press,
giving interviews about his love for music and Russian musical talent.
"I don't like talking about Putin. It's private, I hope you understand," Roldugin said in a 2014 interview.
But
when asked where he thinks Putin's government is failing, he said: "I
think there is not enough effort to fight corruption in Russia. I would
like to see more decisive action.
In Nigeria 276 girls remain missing after being abducted from their school by the terror group Boko Haram.