JONATHAN HAY: on-site general director of the Harvard Institute for International Development (HIID) program in Russia; a graduate of Harvard Law School who was fired from HIID’s Russia project in May 1997 for alleged “activities for personal gain by [HIID] personnel placed in a position of trust in Russia,” and later sued by the U.S. government, Hay has denied that his activities constituted a conflict of interest. Hay, along with Dart Management, Inc., also has been named in a civil suit under U.S. racketeering laws filed in the U.S. District Court of New Jersey by Avisma Titano-Magnesium Kombinat alleging that Hay and Dart skimmed at least $50 million from its profits. Hay currently runs an on-line food delivery service in Moscow.
JEFFREY SACHS: well-known Harvard economist: came to symbolize “shock therapy;” helped lead the publicity effort to deliver Western aid and advice to Poland, Russia, Ukraine, and other countries in the region, sometimes under the umbrella of Jeffrey D. Sachs and Associates, Inc.; served as director of HIID from 1995 to 1999; currently director of Harvard’s new Center for International Development.
ANDREI SHLEIFER: Russian-born American and Harvard economist: served as project director of HIID’s program in Russia and on the board of directors of the HIID-created, Western-funded Russian Privatization Center (RPC), which received millions of Western aid dollars; together with Jonathan Hay, was fired from the project in May 1997 for alleged conflicts of interest (he has denied) and later sued by the U.S. government; remains a Harvard professor of economics.
LAWRENCE SUMMERS: Harvard professor of economics and close associate of Andrei Shleifer; served as chief economist at the World Bank from 1991 to 1993, as under secretary of international affairs at the Treasury Department from 1993 to 1995, as deputy secretary from 1995 to 1999, and as secretary of the Treasury beginning in July 1999.
HARVARD-CONNECTED
ANDERS ÅSLUND: Washington-based Swedish economic historian active in Russia and Ukraine: long-connected to the Chubais Clan, worked with Jeffrey Sachs and Yegor Gaidar (Boris Yeltsin’s first architect of economic reform) in Russia, served on the board of directors of the HIID-created, Western-funded RPC, and has been funded by billionaire George Soros; currently senior associate at the Carnegie Endowment for International Peace.
ELIZABETH HEBERT: investor and girlfriend (now wife) of Jonathan Hay: allegedly used USAID-paid access and favors to benefit her mutual fund, Pallada Asset Management, and also allegedly misused a World Bank loan to set up a government fund to compensate victims of equities fraud; named in civil suit filed by U.S. government.
DAVID LIPTON: Harvard-trained Ph.D. economist, IMF employee from 1981 to 1989, and vice president of Jeffrey D. Sachs and Associates, Inc. from 1989 to 1992; worked with Sachs in Poland, Russia, and other countries in the region; served as deputy assistant secretary of the Treasury for Eastern Europe and the Former Soviet Union from 1993 to 1995, and as assistant secretary for international affairs from 1995 to 1999; senior associate at the Carnegie Endowment for International Peace; currently managing director of Moore Capital Strategy Group; continues to participate in international meetings to discuss aid strategies in an unofficial position as a “Russia expert.”
CARLOS PASCUAL: Harvard graduate: served as U.S. Agency for International Development (USAID) deputy assistant administrator of the Bureau for Europe and the New Independent States; served in the National Security Council as director for Russian, Ukrainian, and Eurasian affairs from 1995 to 1999; currently U.S. Ambassador-designate to Ukraine.
JULIA ZAGACHIN: Russian-born American HIID consultant, associate of Jonathan Hay and coworker of Elizabeth Hebert, and handpicked by Jonathan Hay and Chubais Clan member Dmitry Vasiliev to set up a World Bank and USAID-funded depository.
NANCY ZIMMERMAN: investor and wife of Andrei Shleifer connected through business deals to Elizabeth Hebert and Julia Zagachin, who allegedly used USAID-paid access and favors to benefit her investments in Russia; named in civil suit filed by U.S. government.
CHUBAIS CLAN
MAXIM BOYCKO: CEO from 1993 to 1996 of the HIID-created, Western-funded Russian Privatization Center, which received millions of Western aid dollars; later served as chairman of the State Property Committee (GKI) for several months in 1997 before being fired by Boris Yeltsin for accepting a thinly veiled $90,000 payment from a company that had received advantages in privatization.
ANATOLY CHUBAIS: chief figure in the St. Petersburg or Chubais Clan; underwritten by the West, led economic reform and privatization efforts and wielded tremendous influence (both in and out of government) from 1992 to the present; although fired by Boris Yeltsin in March 1998 from his post as first deputy prime minister, was reappointed in June 1998 to be Yeltsin’s special envoy in charge of Russia’s relations with international lending institutions; at times the second most powerful man in Russia after Yeltsin; served as chairman of the board of the “private” RPC; made his mark as the first chairman of the State Property Committee (GKI) and deputy prime minister beginning in late 1991, was promoted to first deputy prime minister in 1994 only to be dismissed by Yeltsin in 1996, made a comeback as head of Yeltsin’s reelection campaign in 1996, later that year was named Yeltsin’s chief of staff, and was promoted to minister of finance and first deputy prime minister in 1997; most recently CEO of Russia’s electricity monopoly, United Energy Systems (UES), since 1998, helped to run Vladimir Putin’s spring 2000 presidential campaign, and continues to be received by high Washington officials even as a private citizen.
ALFRED KOKH: served as deputy chairman of the board of the Chubais Clan–HIID-run RPC, named State Property Committee Chairman after Maxim Boycko was fired by Boris Yeltsin, accepted a thinly veiled $100,000 payment from a company that had received advantages in privatization, and was himself fired by Yeltsin in 1997 for favoritism; under investigation in Russia for embezzlement charges, and denied entry into the United States in December 1999.
DMITRY VASILIEV: deputy chairman of the board of the Chubais Clan–HIID-run RPC; served as head of the Federal Commission (the Russian version of the SEC), and worked closely with Jonathan Hay to manage millions of Western aid dollars.
SERGEI SHISHKIN: deputy director in 1996 of the U.S.-created and -funded Institute for Law-Based Economy (ILBE), later ILBE director; listed as director for several Russian companies, two of which were owned by Elizabeth Hebert and Nancy Zimmerman.
BANKERS
BORIS JORDAN: American entrepreneur of Russian heritage, pioneered the Russian equities market for Credit Suisse First Boston, and, together with Vladimir Potanin, formed the investment bank Renaissance Capital and also set up Renaissance’s Sputnik Fund, which attracted investors such as billionaire George Soros and Harvard Management Company (HMC).
VLADIMIR POTANIN: Chubais associate and chairman of Unexim (United Export Import) Bank since 1993 and also served as deputy prime minister in 1996; owns significant stakes in Russian banks, oil, metals, natural gas, and telecommunications.
GEORGE SOROS
GEORGE SOROS: Hungarian-born billionaire financier, known both for his currency speculating and philanthropic activities, who is tied to at least one person in each of the above categories: Jeffrey Sachs and Anders Åslund are his grantees, he meets with U.S. officials Lawrence Summers, David Lipton, and Carlos Pascual, and connections with Anatoly Chubais, Boris Jordan, and Vladimir Potanin facilitated his entree into Russian business.
INSTITUTIONS, ORGANIZATIONS, COMMISSIONS
U.S. DEPARTMENT OF TREASURY: a leading agency making U.S. policy toward Russia and Ukraine, which supported Anatoly Chubais and the Chubais Clan and HIID projects in both Russia and Ukraine.
NATIONAL SECURITY COUNCIL (NSC): a leading agency making U.S. policy toward Russia and Ukraine, which supported Anatoly Chubais and the Chubais Clan and HIID projects in both Russia and Ukraine.
U.S. DEPARTMENT OF STATE, OFFICE OF THE AID COORDINATOR: a leading body carrying out U.S. policy toward Russia and Ukraine, which supported Anatoly Chubais and the Chubais Clan and HIID projects in both Russia and Ukraine.
U.S. AGENCY FOR INTERNATIONAL DEVELOPMENT (USAID): the U.S. government agency through which foreign aid flows.
GORE-CHERNOMYRDIN COMMISSION: a high-level, bilateral commission set up by U.S. Vice President Albert Gore and Russian Prime Minister Viktor Chernomyrdin; formally the US-Russia Joint Commission on Economic and Technological Cooperation after Chernomyrdin’s dismissal by Yeltsin, the commission has continued between Gore and the new prime ministers.
WORLD BANK: the development bank funding some projects in Russia run by Anatoly Chubais and members of the Chubais Clan.
HARVARD INSTITUTE FOR INTERNATIONAL DEVELOPMENT (HIID): Harvard University’s institute specializing in international development, founded in 1974 and slated for dissolution (and the integration of its projects into other university programs) in 2000, following allegations of mishandling of USAID funds.
HARVARD MANAGEMENT COMPANY (HMC): Harvard’s endowment fund, which has invested in Russia through Renaissance Capital’s Sputnik Fund since the early 1990s.
RUSSIAN PRIVATIZATION CENTER (RPC): a “private” organization set up in 1992 to further privatization and economic reform. The RPC was run by Chubais Clan members, substantially funded by USAID, and also received hundreds of millions of dollars in grant aid and credits from the United States, the governments of Germany, the United Kingdom, and Japan, the European Union, the World Bank, the European Bank for Reconstruction and Development, and others.
INSTITUTE FOR LAW-BASED ECONOMY (ILBE): an HIID-created, U.S.-and World Bank–funded “private” organization run by the Harvard–Chubais coterie, which was set up to help develop a legal and regulatory framework for markets and evolved to entail drafting decrees for the Russian government.
STATE PROPERTY COMMITTEE (GKI): the Russian state’s privatization agency founded in 1991, which, under the leadership of Chubais Clan members, carried out the privatization of some 15,000 state enterprises.
FEDERAL SECURITIES COMMISSION: rough equivalent of the U.S. Securities and Exchange Commission (SEC), known by some Americans as the “Russian SEC,” established by presidential decree and run by Chubais Clan member Dmitry Vasiliev.
ORGANIZATIONAL PROFILE OF THE HARVARD INSTITUTE FOR INTERNATIONAL DEVELOPMENT
(AS OF JUNE 30, 1996)
Source: U.S. General Accounting Office, Foreign Assistance: Harvard Institute for International Development’s Work in Russia and Ukraine, Washington, D.C., GAO: National Security and Affairs Division, November 1996, p. 62.
Legend:
HIID= Harvard Institute for International Development
ILBE= Institute for Law-Based Economy
LPC= local privatization center
RPC= Russian Privatization Center
USAID= U.S. Agency for International Development