How Roman Abramovich bought Chelsea Football Club.

I can recommend listening/subscribing to the David McWilliams podcast – an Irish economist who popularises economics and explains quite complex issues in understandable language. I might be a bit bias here being Irish. He recently held a live podcast to a sold out audience of 1,200 in the 3Olympia theatre in Dublin. This theatre is more used to rock concerts, plays etc so for an economist to have a sold-out gig is quite impressive. Colin Peacock of Radio New Zealand recently interviewed him on Radio New Zealand

A recent podcast looked at Russia and how the oligarchs got their money – he used the example of Chelsea Football Club owned by Russian Oligarch Roman Abramovich. Below is a mind map and a timeline of events.

  • 1990 – Germany reunites – fall of Berlin Wall
  • 1991 – Yeltsin – first president of Russian Federation
  • 1992 – ‘Shock therapy’ economic reforms – spiralling inflation
  • 1992 – Massive privatisation programme of state assets- every citizen 10,000 ruble voucher
  • 1993 – Oligarchs bought vouchers off confused public – very cheap
  • 1996 – Yeltsin offers oligarchs (22 individuals) key state assets (40% of country) for media support and financing re-election
  • 1997 – Government tries to curtail ‘sweetheart deals’ with oligarchs
  • 1997 – Oligarchs get money out of Russia – buy yachts, property, companies, football teams etc
  • 1999 – Yeltsin steps down and Putin becomes prime minister – the rest is history

Estimates of oligarchs worth outside Russia

  • $920bn of net private Russian wealth located offshore
  • $2bn stake in the London property market
  • $11bn in Swiss bank accounts500
  • Russian multimillionaires living in the UK

2020 report from the Atlantic Council on Russian dark money, Vladimir Putin and his closest associates control around one-quarter of the estimated $1 trillion worth of assets stashed away in the West and beyond Russia’s borders. Source: David McWilliams Podcast

For more on economic systems view the key notes (accompanied by fully coloured diagrams/models) on elearneconomics that will assist students to understand concepts and terms for external examinations, assignments or topic tests.

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