Something I Learned Today: Drones, Diesel, and Don Jr.’s Russian Bankroller

Just as Ukraine was learning how to parry Russia’s drone attacks, Moscow has moved the goal posts with a new generation of innovative jet-powered weapons.

New Geran drones and Banderol cruise missiles are lethal reminders that Russia still has the resources and supply chains to field fresh threats, this time packed with advanced electronics that allow them to find targets accurately and evade interception. Crucially, the leap forward was enabled in large part by components sourced from China, in violation of international sanctions, say Ukraine and others, based in part on wreckage from the few shot down so far.

China has said it regulates exports of technologies that could be used in war. 

Russia’s new and relatively inexpensive weapons show its military remains adaptable and innovative, say analysts and diplomats. Russia developed and fielded both weapons within a couple of years by modifying earlier models, combat-testing them and quickly starting mass production, say analysts.

In doing that, Moscow stole a march on its adversaries. Ukraine has shown it can move quickly—it developed one of the first effective jet drones—but lacks production resources and much capacity to think beyond the near future. 

The U.S. and its allies in the North Atlantic Treaty Organization, meanwhile, are struggling to increase production of vital arms such as Patriot interceptors. Western governments are also grappling with how to accelerate turning innovations into mass-produced equipment.

“Here in the West, we tend to underestimate Russia, but they can go very fast from idea and experimentation to production,” said Kateryna Bondar, a senior fellow at the Center for Strategic and International Studies’ Wadhwani AI Center in Washington. “This loop is something Western militaries should learn from Russia.”

Russia has largely directed its weapons at Ukraine, part of a campaign against civilian life and infrastructure. Some Russian drones and missiles have also entered NATO airspace, either accidentally due to electronic warfare or intentionally in an attempt to probe NATO defenses. Either way, say military analysts, NATO must learn from—and be ready for—Russia’s ability to unleash a range of aerial weapons at different altitudes, speeds and cost levels.

Moscow’s developments also directly affect the U.S. because Russia, Iran and North Korea share military know-how. Innovations from the war in Ukraine are appearing in America’s war with Iran and vice versa.

Moscow has managed to field its new weapons despite Ukraine’s increasingly damaging strikes on critical nodes in Russia’s economy. President Vladimir Putin has used his iron grip on the country to largely reorient it behind his conquest of Ukraine, allowing him to funnel cash from the budget and state-owned banks into the defense sector. He has mobilized in a way that NATO’s democracies haven’t considered doing since World War II.

Banderol and Geran both address a need for cheap yet capable one-way weapons—an economic middle ground that Ukraine and Western countries are also pursuing. The new weapons are a mix of upgraded low-end arms and simplified high-end ones. They each represent a different mix of cost, range, speed, explosive power and ability to reach a target without interception.

Banderol and Geran-5 are both estimated to cost around $100,000 each. High-end U.S. Tomahawk cruise missiles and comparable Russian models cost more than $2 million each.

Geran drones began as versions of relatively slow, propeller-driven Iranian Shahed drones, which Ukraine has become adept at intercepting after heavy investment in equipment and training to counter the threat. Russian engineers, through successive iterations, added speed and survivability thanks to better electronics for navigation and communications, overcoming much of Ukraine’s defenses.

DroneSec analysts concur with Ukrainian assessments that Russia relies heavily on Chinese components including jet engines, navigation computers and communications electronics.

“Russia is critically dependent on Chinese components” for its drone program, said Monnik.

Most of the Chinese gear is commercially available, so-called dual-use components made for civilian or military applications, say analysts. Russian engineers are skilled at exploiting off-the-shelf equipment to maximum benefit, such as in creating antennas that thwart electronic countermeasures and communication networks that overcome jamming. 

Once designs are adopted, Russian companies quickly move to large-scale production, which fulfills another strategic goal of all sides today: volume. Since the Cold War, the U.S. and its rivals have largely pursued expensive, exquisite weapons systems, which proved effective in limited conflicts.

“Now we see that mass is a huge part of success,” said Bondar.

For Ukraine, Moscow’s advances are confounding because it also faces Russian ballistic missiles, which carry massive explosive payloads and are especially difficult to intercept. Russia is also pummeling Ukrainian troops with glide bombs dropped from warplanes, which Ukraine has almost no way to stop. The pounding threatens Kyiv’s ability to maintain its front lines.

“While the drones are a problem, by far the biggest problem for Ukraine is glide bombs,” said Justin Bronk, a research fellow at the Royal United Services Institute, a British think tank.

For the U.S. and its allies, Russia’s improved drones create an economic headache. American forces in the Persian Gulf and NATO have resorted to using expensive equipment like Patriots and jet fighters to intercept inexpensive drones and missiles. Kyiv and Western governments are seeking cheaper ways to thwart low-cost attacks.

Western military-tech companies that have been developing interceptors for propeller drones are scrambling to create faster models. Merops interceptors, produced by a company backed by former Google CEO Eric Schmidt and deployed by U.S. forces both along NATO’s eastern flank and in the Persian Gulf, are now being redesigned in a jet-powered version. Auterion, a leading software supplier to Ukrainian drone makers, is working with partners on high-speed propeller interceptors and jet-powered ones, said CEO Lorenz Meier.

Sourcing inexpensive jet engines for interceptors is a big challenge for the West. Chinese jet engines for Gerans cost $45,000 or less, DroneSec estimates, and defenders generally fire several interceptors at each incoming weapon.

Blurred lines among classes of weapons call for defenses that are more integrated and prepared for a spectrum of threats aiming to overwhelm air defenses, say military specialists. Bronk said NATO would be well served to set up a specialized multinational counterdrone force that constantly trains to down all kinds of drones and missiles. He said this could be done using relatively affordable equipment like radar-guided antiaircraft cannons and simple jet planes used to train combat pilots.

“It’s not an inherently difficult problem,” said Bronk. “It’s just not one we’re optimized for.”

U.S. and NATO officials say they are tackling the problem.

“We must apply and adapt all available tools and capabilities to the realities we face today,” said Army Col. Martin O’Donnell, spokesman for NATO’s top military commander, Air Force Gen. Alexus Grynkewich. He said that NATO members at their recent summit pledged to invest more than $40 billion over five years in counterdrone capabilities.

Anticipating future development waves will be critical, said Bondar. She noted that Ukraine has had indications for several years that Russia was working on jet-powered drones and inexpensive cruise missiles, yet Kyiv has been unprepared for their large-scale use.

“It was obvious quite a while ago that we’d end up here,” said Bondar. “I’m surprised everyone is surprised.”

Source: Daniel Michaels, “Russia Is Churning Out Smart, Cheap New Weapons Faster Than Ukraine or the U.S.,” Wall Street Journal, 13 September 2026. I am paid subscriber to the digital edition of this newspaper, and so I am happy to share articles like this with my own readers. }}}}} trr


As wars in the Middle East and Ukraine drive the price of diesel to record highs, inflation-weary consumers can expect to pay more for practically everything.

As of Friday, the average retail price of diesel fuel stood at $6.06 per gallon, according to AAA, up from $3.71 a year ago.

The New England average price is virtually identical to the national average, but far lower than that in California, which at $7.98 is the highest in the nation.

“It makes us a lot more expensive than we used to be,” said Charlie Itz, president of Itz-Ohlson Transport, a trucking company in Lynnfield.

It’s happening because, even though the US is the world’s leading producer of diesel, much of the nation’s production is exported to countries that can no longer obtain fuel from refineries in the Middle East or Russia due to military conflicts.

“The United States is experiencing this because it’s part of a global, interconnected market,” said Mason Hamilton, vice president of economics and research at the American Petroleum Institute, or API.

The pervasive effects from those higher prices shows up across the economy. On Friday the US Bureau of Labor Statistics reported that inflation for August ran at a 3.4 percent annual clip, with gas and fuel oil major culprits in keeping consumer prices elevated.

Consumers usually pay closer attention to gasoline prices, which climbed 3.9 percent last month according to Friday’s inflation report.But diesel is just as vital to the US economy, because it’s the primary fuel for the large trucks and freight trains that deliver most of the nation’s goods. Diesel also powers many seagoing ships. Higher diesel pricesmean we pay more for products shipped to homes and retail stores.

Moreover, the price of diesel has climbed much faster than that of gasoline, which is up by about $1 a gallon from last year. That’s largely because many US refineries are optimized to produce gasoline, helping to keep prices in check.

It all means higher fuel prices for truckers such as the independent contractors who drive for Itz-Ohlson Transport.

The company mostly handles short-range jobs, like moving shipping containers in and out of the Port of Boston. The company charges a base rate of $401 for trips within 30 miles of the port, then adds a surcharge to cover the cost of diesel. In March, the surcharge stood at 38 percent of the base rate, or $152. Now it’s up to 57 percent, or $228.

“Our customers are pretty understanding,” said Itz. “I think they’re resigned.”

Costly diesel is bad news for James Knott, chief executive of Riverdale Mills, a Northbridge-based maker of steel wire mesh used in products ranging from fences to lobster traps.

“High diesel costs affect us at virtually every stage of the supply chain,” said Knott. The company uses steel from US and Canadian suppliers, then ships its wire mesh to customers throughout the US and around the world.

When diesel gets more expensive, “those costs do not simply disappear,” Knott said. “Manufacturers must absorb them, find efficiencies elsewhere, or eventually pass some portion along to customers.”

Dean Croke, principal industry analyst at DAT Freight & Analytics, an online marketplace for truckers and shippers, said the impact of higher diesel may depend on the value of the goods being shipped. For instance, if a company is shipping costly computers, a price increase to cover fuel is hardly worth noticing. “A few hundred dollars of fuel,” said Croke, “is like a rounding error.”

But it’s a different story with lower-cost products shipped over long distances, he said. Consumers can expect to pay a significant fuel premium for iceberg lettuce shipped from California, for instance.

While the nominal price is the highest on record, diesel is still going for well below the all-time high reached during the 2008 financial crisis, which after adjusting for inflation to today’s dollars, topped out at $7.20, according to the US Energy Information Administration.

The diesel price hikes have arrived just as the US trucking industry had begun to recover from a four-year slump. A spike in demand that began during the COVID pandemic put hundreds of thousands of new drivers on the roads. But demand fell again, pushing down the price of truck deliveries and driving many small- and medium-sized truckers out of business.

Croke said the slump would be even worse if not for the recent surge in construction of data centers to support artificial intelligence systems.These huge buildings require thousands of truckloads of construction materials and electronic gear.

“Absent that,” said Croke, “demand would be way down.”

But the trucking market has begun to recover, as a shortage of workers means fewer trucks on the road. One major reason: the Trump administration’s crackdown on noncitizen drivers, who now must have visas that allow them to workand prove they speak English well enough to drive safely on US highways. The Department of Transportation estimates that enforcing those standards will force 200,000 drivers off the roads. That’s around 9 percent of the 2.2 million tractor-trailer drivers in the US workforce, according to the Bureau of Labor Statistics.

“We’re seeing the largest single-driver-removal event in modern history,” said Croke.

As a result, spot rates for shipping a truckload of merchandise have hit their highest levels in four years. And now, the cost of diesel is driving prices even higher.

The increase stems from tight supplies worldwide. The 2022 diesel price spike was driven by a halt in US purchases of diesel fuel from Russia. The European Union followed suit. But Russia was still able to sell its oil in other countries including Turkey and Brazil.

In all, Russia once exported over 800,000 barrels of diesel per day, making it the world’s second-largest exporter after the United States, which increased shipments to the EU to cover for lost Russian oil.

But this year Ukrainian airstrikes against Russian refineries have forced Russia to halt virtually all diesel exports. That means a big decline in worldwide diesel production, and upward pressure on prices.

The battle over the Strait of Hormuz has also had an impact. A Goldman Sachs analyst recently estimated that despite US government efforts to keep the strait open, shipments of refined oil products like gasoline and diesel are only at 35 percent of their prewar levels.

And then in March, China, a major exporter of diesel to Asian markets, halted all foreign sales to protect its domestic supply, though the Chinese government this summer allowed some exports to resume.

The US produces over 5 million barrels a day of distillate fuel oil, which includes diesel and home heating oil. That’s more than any other nation.

But there’s no way to open the tap any wider. “Basically every single refinery in the United States right now is running full out,” said Hamilton of API.

And much of their output is exported to Europe and Latin America. The US imports millions of barrels as well, with, ironically, much of New England’s diesel coming from Canada, with whom President Trump has just started a massive trade war. So far, diesel has not been caught up in the tit-for-tat retaliations by either country.

In short, the market for diesel is global and supply shortfalls anywhere lead to high prices everywhere, even in New England.

Source: Hiawatha Bray, “Diesel prices soar past $6 a gallon, affecting the cost of nearly everything else,” Boston Globe, 11 September 2026. I am paid subscriber to the digital edition of this newspaper, and so I am happy to share articles like this with my own readers. }}}}} trr


U.S. President Donald Trump on Sunday called on Ukrainian President Volodymyr Zelenskyy to halt strikes on Russian oil refineries and other infrastructure used to produce and distribute diesel, saying the attacks are causing a global shortage. He spoke after diesel prices in the U.S. hit a record on Friday, soaring past $6 a gallon on average.

Ukraine has for months been targeting Russia’s oil and gas industry with long-range strikes, prompting fuel rationing across the country and causing Moscow to ban diesel exports in July, removing supplies from the already tight global market.

But the global crunch also came after the war on Iran curtailed oil shipments through the Strait of Hormuz.

Fuel prices are weighing on Americans as they prepare to vote in midterm elections in November.

Trump was asked by a reporter if he had spoken with Zelenskyy following his recent conversation with Russia’s Vladimir Putin. He responded by calling on Zelenskyy to halt strikes against Russia.

“Mr. Zelenskyy has to do one thing. He has to stop knocking out diesel fuel in Russia,” Trump told reporters on the sidelines of the Irish Open, which is being played at his Doonbeg golf club.

“We spoke to Mr. Zelenskyy about it. There are plenty of other targets. Don’t hit diesel fuel, because that’s hurting, that’s hurting the world,” he said.

According to a report published Friday by the International Energy Agency, net exports of diesel and gasoil from the Gulf countries in August stood at “just over a quarter” of what they were before the war on Iran began in February.

“Disruptions to Russia’s refining system and a near-halt to product exports following intensified Ukrainian attacks have compounded these losses,” the IEA wrote. It added that in February, combined next exports of diesel and gasoil from the Gulf and Russia “accounted for almost 45% of global seaborne trade.”

Kyiv says Russia’s oil industry both funds and directly fuels Moscow’s more than four-year-old invasion of Ukraine.

Russia has ramped up its air campaign against Ukraine in recent weeks, using ballistic missiles and jet-powered drones to pierce Ukraine’s defenses. Moscow’s attacks have targeted Ukraine’s power grid ahead of winter in what officials say is meant to demoralize civilians.

Civilians were killed and injured overnight into Sunday as Russia and Ukraine exchanged large-scale drone strikes.

Two people were killed and 14 more wounded near an oil and industrial hub in Russia’s Tatarstan, according to local officials, while Ukrainian authorities reported on Russian drones pummeling the Black Sea port of Odesa and starting a fire near a border crossing with Poland.

The two Russian civilians died after a drone slammed into a tree near their parked car in the city of Nizhnekamsk, according to the office of regional head Rustam Minnikhanov. Nizhnekamsk houses a key cluster of oil refineries and other industrial plants. Mayor Radmir Belyaev said that a fire had broken out at an unspecified “enterprise.”

Ukraine also claimed to have hit a major oil refinery in Slavyansk-on-Kuban, in Russia’s Krasnodar region near Crimea. The Defense Intelligence of Ukraine (DIU) agency said its drones struck a key oil processing unit and the refinery’s tank farm overnight into Sunday.

Krasnodar authorities said the strike on “an enterprise” in Slavyansk-on-Kuban injured three people and damaged an oil pipeline.

Russian forces shot down 389 Ukrainian drones during the night, Russia’s defense ministry said Sunday.

In Ukraine, at least nine people were injured in a “massive” Russian nighttime attack on Odesa, according to Serhii Lysak from the city’s military administration. Odesa is home to Ukraine’s main port hub on the Black Sea and has faced sustained drone and missile strikes, with Kyiv accusing Moscow of trying to choke off its exports.

A Russian drone attack on Saturday struck a residential high-rise in Odesa, killing two people and injuring 26 others, Ukrainian officials said.

Russian overnight strikes also pounded western Ukraine, though there were no immediate reports of casualties. One drone set fire to a gas station near the Yahodyn-Dorohusk border crossing with Poland, according to Ukraine’s top diplomat and a spokesperson for the local customs force.

“This is Putin’s terror ‘knocking’ directly on the doors of the EU and NATO. Russian barbarians are at your gate, dear partners,” Ukrainian Foreign Minister Andrii Sybiha wrote on X.

Ukraine’s border crossings with Poland are a conduit for much of the military and humanitarian aid sent by Western allies.

Valentyna Chernysh, a spokesperson for the Volyn Customs Office, told The Associated Press that the Yahodyn crossing was intact and no one was harmed.

Earlier this week, two people died when Russian drones hit the Starokozache border crossing between Ukraine and Moldova on Tuesday. The following day a “direct threat” to a Polish-Ukrainian crossing point was avoided due to the cooperation between Warsaw and Kyiv, according to Polish Prime Minister Donald Tusk.

Ukraine’s air force said its air defenses shot down or suppressed 409 Russian drones of various types overnight, including a newer jet-powered version that is faster and more difficult to intercept. It said Russia had attacked Ukraine with 453 drones in total.

Source: “Trump calls on Ukraine to halt strikes on Russian diesel fuel, citing a global shortage,” Associated Press (via ABC News), 13 September 2026


On May 24, Donald Trump Jr. was celebrating in the Bahamas, as scantily clad dancers in stilettos and sailor caps performed for him and his guests. It was the last night of his wedding, a lavish, three-day party held across a pair of ultra-exclusive private islands. A five-tier funfetti cake had been airlifted in from Florida, and helicopters and seaplanes descended on the islands before guests settled into their oceanfront villas. That night on the beach, Trump Jr. lifted his bride into the air while fireworks launched from a barge over the sea.

“It was everything we dreamed of and more,” his wife later wrote on Instagram.

That dream was heavily funded by a secret benefactor: Umar Kremlev, a Russian oligarch close to President Vladimir Putin.

Kremlev footed the bill for hundreds of thousands of dollars of wedding expenses, according to records reviewed by ProPublica and interviews with three people familiar with the event. The oligarch paid to rent out one of the private islands, where a reception was held and where guests slept. He also covered other big-ticket items, like the fireworks show, and his team helped plan the event. Kremlev is the head of the International Boxing Association, a scandal-plagued sports group that has been financed by the Russian state-owned energy giant Gazprom. The wedding payments came from an IBA-affiliated entity in Dubai that the boxing association uses for financial transactions.

The guest list numbered around 50. It included Trump Jr.’s brother-in-law Jared Kushner, Eric Trump — and Kremlev, an imposing man with a shaved head who speaks limited English. The oligarch was part of a large group whose presence puzzled other attendees. They sometimes stood off by themselves, speaking Russian.

“It was really small, like, just really close friends,” Trump Jr. later said on his podcast. “Tried to keep it really tight. And it was just awesome.”

Kremlev’s previously unreported relationship with Trump Jr. represents an extraordinary development: a member of Putin’s circle financially supporting the president’s son and gaining intimate access to the Trump family. For a decade, Putin’s government, regarded as a chief adversary of the U.S., has been accused of efforts to influence American elections. Attempts by Russia to make inroads with the Trumps before the 2016 election exploded into controversy that dogged much of the president’s first term.

National security experts expressed alarm at Trump Jr. accepting the oligarch’s largesse, saying it raised an urgent question: What motivated Kremlev to spend a fortune cultivating the connection? 

“If I’m paying for your wedding, at some point, you’re going to owe me something,” said Frank Montoya Jr., a retired career FBI official who held senior counterintelligence roles. Oligarchs like Kremlev often act in coordination with the Russian government. While it’s unclear if that happened here, Trump Jr. put himself in a precarious position, Montoya said. “This should be unthinkable for the son of the president. End of story.”

Holden Triplett, who served as Trump’s counterintelligence director on the National Security Council during his first term, said Russian intelligence frequently seeks to build ties with U.S. government officials and their family members. “Money is a tried-and-true method to gain access,” said Triplett, who also worked for the FBI in Moscow.

In the days leading up to Trump Jr.’s wedding, Kremlev was in China as part of the delegation accompanying Putin, according to Chinese state media. The month before, Putin had bestowed him with a state honor, the Order of Friendship. The Ukrainian government has imposed sanctions on Kremlev personally, citing his closeness to Putin and Russian security services.

It’s not clear why Kremlev helped pay for Trump Jr.’s wedding. The men appear to have met only recently. Public reporting suggests Trump Jr. could have afforded it himself, with Forbes recently estimating his net worth at roughly $300 million. 

In response to detailed questions, a spokesperson for Trump Jr. did not dispute the wedding payments from Kremlev. “Umar is a personal friend of Don,” he said. The spokesman said that Kremlev is “not someone he has a business relationship with” and that the men met through a mutual friend in the hunting world and bonded over their love of boxing and the outdoors.

A spokesperson for Trump Jr.’s brother Eric said of Kremlev: “Eric has absolutely no clue who this person is, nor has never heard his name.” 

In a statement, Kremlev’s press office said, “Mr. Kremlev and Mr. Trump Jr have a friendly relationship” and they first met “a couple of years ago.”

The press office described Kremlev as a businessman and philanthropist, adding, “Mr. Kremlev has never discussed political matters with any of his American friends and acquaintances,” including Trump Jr. They said the boxing organization itself did not incur expenses for the wedding but did not comment on the payments from the Dubai entity. The press office also said that when Putin and Kremlev were in China recently, Kremlev was not part of Putin’s “official delegation.”

Kushner, who has been helping lead the U.S. government’s negotiations with Russia over Ukraine, did not respond to requests for comment. The White House and the Russian government did not respond either.

The revelations come as Trump Jr. has emerged as a political power center in his own right. Beloved by the MAGA base, he reportedly played an active role in vetting White House cabinet picks for Trump’s second term and was dubbed his father’s “most essential political adviser” by The Wall Street Journal. “I certainly don’t think I’d be sitting here as the VP nominee without Don’s help,” Vice President JD Vance told the outlet in late 2024.

This account is based on records and interviews with dozens of current and former IBA officials and contractors, wedding attendees and other people in Trump Jr.’s and Kremlev’s circles.

Trump Jr. exchanged vows with socialite Bettina Anderson on a private island that was featured in “Pirates of the Caribbean” and the 2006 James Bond movie “Casino Royale.” They had their first dance on a second private island nearby that can rent for around $100,000 a night, paid for by Kremlev. The company that put on the fireworks display charges around $70,000 for such shows. (Kremlev did not attend the ceremony itself, which was held on the first day and had just 18 guests, Trump Jr.’s spokesperson said.)

The atmosphere was Monte Carlo meets frat party — helicopters in and out, a beachside DJ set, beer pong tournaments. One day, the men went spearfishing. Artisans at the London fashion house Safiyaa spent 150 hours embroidering Anderson’s bespoke silk reception outfit. The president’s son had undergone treatment to better define his jawline for the occasion.

Some longtime friends of Trump Jr. told associates they were disappointed not to be invited, though a few of his closest business partners — executives at the Trump family crypto company, World Liberty Financial, and the venture capital firm 1789 Capital — did make the cut. President Trump himself skipped it. (“He’d like me to go, but it’s going to be just a small, little private affair,” the president told reporters beforehand. “I said, you know, this is not good timing for me.”) But many of the guests were immediate family of the bride and groom.

That made the large contingent of Russians all the more conspicuous. “What are they doing here?” one person recalled thinking. At least one of the Russian guests had been with Kremlev on his China trip: Alexander Lagutin, a businessperson who has served in senior roles at a Russian defense contractor and a state-backed energy company. Kremlev’s right hand at the IBA, Elena Sobol, attended the wedding too. 

Since the wedding, the Trumps have released scores of photos and videos of the festivities. While they show many of the guests, the Russians have been absent from all of them. (The top of Kremlev’s head is visible in the back of one group photo posted on Instagram by a friend of the bride.) After the party was over, on his “Triggered” podcast, Trump Jr. emphasized the event’s privacy: “The people that were there — if you’re on that list, you weren’t talking.”


In 2009, Umar Kremlev did not yet exist.

He was in his late 20s, with a criminal record for extortion and battery, still going by his birth name, Umar Lutfulloyev, according to the Russian independent news outlet Proekt. But he was about to rapidly ascend in Russia to a position of wealth and influence, with the help of a powerful friend. (“Mr. Kremlev has a completely clean legal record,” his press office said.)

In 2010, he changed his name to Kremlev. He soon joined a Russian government-backed biker gang called the Night Wolves, eventually taking a leadership role, according to news reports. That is what first brought him close to Alexei Rubezhnoi, who now leads Putin’s presidential security service, Proekt reported. In 2017, Kremlev took over the Russian Boxing Federation, after Rubezhnoi personally intervened to put him at the helm.

In 2020, Kremlev became president of the IBA. The association was something akin to FIFA but for boxing and had long overseen the sport in the Olympics. But it had been beset by corruption allegations and was on the brink of insolvency. Kremlev brought money to the table from Gazprom, the state-owned company that operates as an arm of Putin’s government. Gazprom publicly became the IBA’s financial backer, filling its coffers with tens of millions of dollars.

Former high-level IBA officials said that Kremlev had a clear political agenda. “Umar is guided by Putin. It was using the sport for soft political power,” a former IBA board member told ProPublica. “It’s geopolitics. That it’s boxing is just happenstance.” Kremlev, 43, is also heavily involved in an organization called Healthy Fatherland, run by his 23-year-old wife’s twin sister. The group — which promotes healthy eating and youth sports — is under Ukrainian sanctions for its alleged role in a program of abducting Ukrainian children from occupied territories and relocating them under the guise of “rehabilitation.” (Healthy Fatherland did not respond to a request for comment.)

Kremlev’s cozy relationship with the government has made him rich. Putin used the levers of the state to make Kremlev a dominant player in the Russian sports betting industry, according to Proekt, and one of his companies was chosen to operate the national lottery. After Putin nationalized Russia’s largest car dealership company in 2023, Kremlev became the owner of that too.

He now flaunts that wealth through his boisterous public persona. In one video Kremlev posted on social media, he surprises a young mother by giving her a free car. In another, he criticizes his young female aide’s outfit as not feminine enough and makes her change. He shadowboxes with ostriches and brings in celebrities like Rick Ross and Naomi Campbell for IBA events; he praises Stalin and rides private jets.

Following the Russian invasion of Ukraine in 2022, the U.S. began to indict Russian oligarchs and seize yachts and other assets. Kremlev repeatedly told associates he was worried about being targeted by a U.S. government probe, according to a person close to IBA leadership. “He was very afraid of American sanctions,” the person added. (Kremlev does not appear on public U.S. sanction lists.)

With the business environment in Europe growing more hostile to Russia, Kremlev moved much of the IBA’s operations from Switzerland to the United Arab Emirates. A new Dubai entity, IB Challenger, would later pay wedding expenses for Trump Jr. The current sources of the IBA’s funds are murky, and, in recent years, top executives have given conflicting accounts of the status of its relationship with Gazprom. (Kremlev’s press office told ProPublica the IBA’s sponsorship contract with Gazprom “expired long ago.”) People close to the organization said they understood that its money still comes from Russia.

In 2023, the International Olympic Committee stripped Kremlev’s IBA of its role organizing Olympic boxing. It has cited a host of governance issues and the group’s refusal to “transparently explain the sources of its financing or to explain its full financial dependency, at the time, on a single state-owned company.” 

It was a major setback that deprived the IBA of a key source of its international influence. Kremlev has raged against the Olympic committee ever since and has said that his IBA predecessor, who he blames for the problems, “must be shot.”

Kremlev saw a potential ally in President Trump. After Trump’s second inauguration, in January 2025, Kremlev sent an open letter to the president asking him to look into the Olympic committee’s actions in advance of the 2028 Los Angeles Games. “We look forward with great optimism to the possibility of working together to make the Olympic movement great again,” he wrote.

In September 2025, the IBA brought in Trump Jr. for a panel discussion in Istanbul about boxing. With his then-girlfriend, Anderson, sitting offstage, he criticized transgender women competing in women’s sports and reminisced about watching Saturday night fights as a child. Trump Jr. shared the stage with Kremlev, the boxer Manny Pacquiao and Muhammad Ali’s daughter Rasheda. (Trump Jr.’s spokesperson said he was not paid for the appearance and was already in Turkey for an unrelated event.)

The president’s son had reason to be attuned to the sensitivity of cozying up with a Putin associate, especially while his father navigates the Russia-Ukraine war. Trump Jr.’s June 2016 meeting with a Russian attorney in Trump Tower became a major focus of the Robert Mueller investigation.

The Trump Tower meeting was arranged after an email offering Trump Jr. damaging information about Hillary Clinton as “part of Russia and its government’s support for Mr. Trump.” Trump Jr. famously responded, “If it’s what you say I love it especially later in the summer.” Trump Jr. later dismissed the matter as a “witch hunt,” and the Mueller report concluded that there was not enough evidence to convict him of a crime.

Recently, Kremlev has been working to expand into the U.S. market. In July, his group hosted a bare-knuckle boxing event in Miami, a chance to showcase a particularly bloody form of the sport in which contenders fight without gloves. But the debut was overshadowed when manosphere influencer Andrew Tate, who the IBA had brought in to host, was arrested by U.S. Marshals outside the arena. (Tate is facing rape and sex trafficking charges in the United Kingdom, which he has denied.)

Much about Kremlev’s relationship with Trump Jr., and where it is headed, remains unknown. In a press release after the Istanbul panel, the IBA hinted there was more to come. 

“President Kremlev and Donald Trump Jr made it clear – this alliance will not remain symbolic,” the press release read. “More joint initiatives will follow.”


Do you have any information we should know about Donald Trump Jr., his businesses or Umar Kremlev? Justin Elliott can be reached by email at justin@propublica.org and by Signal or WhatsApp at 774-826-6240. Brett Murphy can be reached by email brett.murphy@propublica.org and by Signal or WhatsApp at 508-523-5195. Josh Kaplan can be reached by email at joshua.kaplan@propublica.org and by Signal or WhatsApp at 734-834-9383.

Source: Justin Elliott et al., “Donald Trump Jr.’s Bahamas Wedding Was Secretly Bankrolled by Russian Oligarch Close to Putin,” Pro Publica, 14 September 2026. I just made a donation to ProPublica to thank them for this and other groundbreaking investigations they have published over the years. }}}}} trr

Sanktsionshchiki

sankts“Sanctioned product”

The Demand for Sanctions Specialists Has Grown in Russia
Svetlana Romanova
RBC
November 9, 2017

According to recruiting agencies and job search sites, he Russian job market has seen a growing demand for employees who understand the ins and outs of sanctions legislation.

According to Headhunter.ru, there were 27 published vacancies for sanctions specialists in October 2017; there were a mere nine vacancies in October 2014. Sberbank, VTB, UniCredit, Raiffeisen, Globex, and the Russian Regional Development Bank are among the companies now recruiting these specialists.

It is not only banks that have been generating the demand (they account for 44% of all vacanies) but also law firms (21%), accounting firms (11%), and insurance companies (10%). Starting pay is 250,000 rubles a month [approx. 3,600 euros a month], but experienced specialists can count on monthly salaries of 500,000 rubles, we were told by the personnel agencies we interviewed.

Vacancies advertised on websites are only the tip of the iceberg: headhunters are usually employed to find sanctions specialists. The first request for a sanctions specialist to the recruiting agencyHays was made by a major private Russian bank in late 2014, said Darya Anikina, managing consultant for financial institutions at Hays. Currently, the agency selects candidates for at least five positions a month at different companies. Our sources at the agencies Cornerstone, Kontakt, and Unity also told us about a deficit of sanctions specialists.

“The profession doesn’t exist officially. It’s not taught anywhere,” said Yuri Dorfman, a partner at Cornerstone.

Headhunters have to make compromises and use their imaginations. For example, Cornerstone recently succeeded in placing a specialist at a bank. At his previous job, he had been employeed preventing money laundering, and monitoring and stopping illegal financial transactions. Sanctions specialists are also aware of the demand and have been making the most of it. When moving to a new company, they ask for at least a thirty or forty percent raise, rather than the customary twenty percent raise.

Whereas sanctions specialists are sought out by banks and legal firms, the consumer goods retail sector has been vigorously looking for specialists to help it get round the Russian Federation’s countersanctions, meaning specialists in logistics and foreign trade. According to the website Superjob, the salaries for such vacancies increased by 18% in 2017.

______________________________

Sanktsionshchiki: Who Recruiting Agencies Are Hunting Nowadays
Svetlana Romanova
RBC
November 9, 2017

The Russian labor market’s demand for sanctions experts has been growing. People who practice this new, rare profession earn between 250,000 and 500,000 rubles a month, and employers have been headhunting them with a vengeance.

Since March 2014, the US, the EU, and other countries have been continously imposing more and more sanctions on Russian nationals, companies, and individual industries. This has provoked a demand for sanctions experts on the Russian jobs market. Some companies simply cannot do without their assistance. According to headhunters, there is a lack of such specialists. Employees who have improved their qualifications and learned how to deal with the restrictions and risks occasioned by sanctions can count on salary increases of thirty to forty percent.

Sanktsionshchiki
In March 2014, 46-year-old Artyom Zhavoronkov, a partner at the legal firm Dentons who specializes in mergers and acquisitions, was planning to travel to Washington, DC, to give a lecture to an American audience about how to build a business in Russia. But since the US had imposed the first set of sanctions against Russia [sic], the Americans cancelled the lecture. Zhavoronkov kept his head and suggested changing the subject of the lectures. He decided to talk about something more topical: the sanctions and their consequences. Ultimately, the lecture took place, and it was standing room only in the auditorium. It was then that Zhavoronko understood he had found a new business niche: legal advices on issues related to sanctions. Currently, he consults twenty to thirty international and Russian clients monthly.

Recruiting agencies received the first requests for sanctions specialists in the spring of 2014, but by the autumn of 2017 the demand for such specialists had become stable. The demand has grown not only for temporary consultants like Zhavoronkov: many companies seeks to hire in-house specialists. According to HeadHunter.ru, its website listed nine such vacancies in October 2014. By October 2017, that number had grown to 27. Candidates are usually expected to have degrees in law or finance, a good command of English, and a high tolerance for stress.

This is the tip of the iceberg, because companies usually employ headhunting agencies to find sanktionshchiki. Russian ompanies have realized no one is going to cancel the sanctions anytime soon, the lists of sanctioned companies and individuals have been expanding, and so the problem will not solve itself.

The first request for a sanctions specialist to the recruiting agency Hays was made by a major private Russian bank in late 2014, said Darya Anikina, managing consultant for financial institutions at Hays. Currently, the agency selects candidates for at least five positions a month at different companies. Compared with other professionals, this is a tiny figure, but for the time being they are all that is needed. In a company that employs a thousand people, there might be three or four such specialists, but they will earn more than their colleagues.

Who and What Banks Are Looking for

Vacancy: Specialist for international sanctions monitoring group

Duties: Vetting of bank clients and transactions against the lists of international sanctions, as imposed by the US, EU, UN, and other in-house lists. Search and analysis of additional information on the internet and the bank’s internal databases in order to analyze automatically generated warnings regarding the bank’s clients and transactions. Drafting of brief, well-argued analyses of automatically generated warnings. Filing of reports.

Requirements: Tertiary degree in economics, finance or law. No less than six months’ experience working in a credit institution. Experience working with automated banking systems. Command of written and spoken English at the intermediate level is obligatory. Ability to cope with large amounts of routine work. The candidate must be detail-oriented, focused, perseverant, able to learn quickly, proactive, diligent, and well-spoken.

Sourcejob listing on the website Headhunter.ru

Banks on the Hunt
Artyom Zhavoronkov provides sanctions-related legal services. He establishes whether the owner of a company with whom his client plans to make a business deal is not on the sanctions lists, and he drafts supply contracts that account for international restrictions. But he also provides more ambitious services. Recently, Zhavoronkov drafted a plan for an oil company: he conceived and drafted an in-house list of “sanctions” rules. For example, Zhavoronkov devised a special algorithm for sale managers that prevents them from making deals with companies and individuals on the sanctions list.

“If questions arise, sales managers contact legal counsel, and together they decide whether they can sign a contract,” Zhavoronkov explained.

Most of all, Zhavoronkov is proud he succeeded in getting a major company off the sanctions list. (He did not name the company, citing a nondisclosure agreement.) He conducted long negotiations with regulators, trying to prove to them that the circumstances that had led to his client’s ending up on the sanctions list had changed. Although the US Treasury Department’s Office of Foreign Assets Control (OFAC) has not made public a single instance in which the US has taken Russian companies off the sanctions lists, there have been precendents in other countries. In September 2014, Canada removed sanctions from two Russian banks, Expobank and Rosenergobank, acknowledging they had been placed on the sanctions list mistakenly.

The services of sanctions experts are needed by investment funds, including ones run by major banks, and the management companies of oligarchs who have been sanctioned, said Zhavoronkov.  There is also demand from consulting companies. However, judging by job search websites, it is Russian banks that are most in need of employees versed in the ins and outs of sanctions. Since 2014, banks have accounted for 44% of such vacancies on HeadHunter.ru, with legal companies coming in second at 21%.

Recently, two vacancies were posted by the country’s largest bank, Sberbank. It seeks two experts for its international sanctions monitoring group. The specialists must prepare opinions on transactions and operations, that is, check whether they are covered by the sanctions imposed by international organizations and individual governments, consult with employees, and respond to their requests. Sberbank refused to tell us whether it had succeeded in filling the positions.

Other financial institutions have placed help wanted ads on HeadHunter.ru: VTB, UniCredit, Raiffeisen, Globex, and the Russian Regional Development Bank. None of them agreed to talk with us on the record. RBC’s sources at a major state bank confirmed they have a full-time sanctions specialist on staff. But the source refused to provide details, adding that no one wants to talk about it publicly, since the “topic is painful and nothing to brag about.”

Russian financial institutions that have been sanctioned need specialists to keep from having even more serious restrictions imposed on them and avoid jeopardizing their business partners.

Banks that have not been blacklisted need such specialists to avoid violating the sanctions by working with counterparties. Otherwise, they can also have their access to western loans cut off. Primarily, this concerns the top one hundred financial institutions in terms of assets. It is they who hire sanctions specialists, said Roman Kuznetsov, senior analyst at the investment company QBF. Each major bank has a few sanctions specialists, said Andrei Zakharov, director of the financial institutions personnel recruiting department at Kontakt.

Experience Is More Important than a Diploma
Of course, not a single Russian university educates sanctions specialists, nor are there any continuing education courses on the topic as of yet. Everything has to be learned on the job. Successful candidates for sanctions specialist jobs usually have three or four years’ experience working in legal compliance or auditing departments of banks. Candidates with other financial backgrounds are considered less often, said Darya Anikina.

Dentons employs 200 attorneys. Aside from Zhavoronkov, however, only two of his colleagues, both of them under thirty, deal with sanctions-related cases. Zhavoronkov is their mentor. He made it his goal to cultivate these unique specialists in firm. Currently, there are very few experienced employees who understand the intricacies of the sanctions. Three and a half years have passed since the first sanctions were imposed. This is too short a time to form a pool of specialists.

Unlike the Russian labor market, the specialization has existed on the American job market for several decades. Sanctions compliance in the US is an entire niche business, claimed Zhavoronkov. The staff of any American law firm usually has one such specialist. His or her work is considered routine.

According to Bloomberg, the demand for sanctions expertise in the US grew in 2014. American companies frequently hired former officials from the Treasury Department, who were involved in drafting most of the restrictions. For example, until 2014, Chip Poncy was head of the unit for combating the financing of terrorism and financial crimes at the Treasury Department, but after the first sanctions against Russia [sic] were imposed, Poncy founded Financial Integrity Network, which helps businesses deal with the restrictions.

The costs of making a mistake can be quite hefty. For example, the French bank BNP Paribas agreed to pay $8.97 billion in fines after it was discovered it violated sanctions regimes between 2004 and 2012, when it did business with individuals and companies from Sudan, Iran, and Cuba, which have been sanctioned by the US.

The Reverse Side of the Sanctions
Whereas banks and legal firms have been seeking sanctions specialists, the FMCG (fast-moving consumer goods) sector has been vigorously seeking people who can help them bypass the produce embargo imposed by Russia, that is, they have been seeking experts in logistics and foreign trade. According to the website Superjob, the job of foreign trade manager was among the top jobs in terms of salary increases in 2017. The starting salaries for such specialists have increased by 18% since the beginning of the year.

The Price Tag
None of the vacancies on HeadHunter.ru that RBC examined contained information on the salaries of sanctions specialists. However, recruiters says the starting salary of a specialist with little work experience is 250,000 rubles a month.

Nevertheless, it is difficult to fill the positions quickly, admitted Anikina. Nor is it always clear how and where to find the right people, Yuri Dorfman, a partner at the agency Cornerstone, agreed with Anikina.

“This is not marketing, where the process for filling jobs is clear and formalized. The profession doesn’t exist officially,” he said.

Recently, Cornerstone managed to find a specialist for the compliance department at a bank. At his previous job, he had been employeed preventing money laundering, and monitoring and stopping illegal financial transactions. Sanctions specialists, a new and rare breed, are also aware of the demand and have been making the most of it. When moving to a new company, they ask for at least a thirty or forty percent raise, rather than the twenty percent pay rise customary on the market.

Felix Kugel, managing director of the recruitment company Unity, sees an experienced attorney who has a thorough knowledge of corporate law as the perfect sanctions specialist. The salary of an employee like this could be around 500,000 rubles a month [i.e., over 7,000 euros; by way of comparison, according to the website Trading Economics, the average montly salary in Russia as of October 2017 was 38,720 rubles or 556 euros, although regular readers of this website will know that real monthly salaries are often much lower in particular occupations and regions—TRR].

It is unlikely sanctions specialists will be unemployed.

“I would be glad if the sanctions were lifted, despite the fact I earn money from them,” said Zhavoronkov, “but I am confident this won’t happen in the near future.”

Zhavoronkov recalls the Jackson-Vannick amendment to the Trade Act of 1974, which limited trade with countries that restricted emigration and violated other human rights, e.g., the Soviet Union, China, Vietnam, and Albania. It was officially abolished in 2012, although it had de facto ceased to function in 1987.

The new specialization will be in great albeit limited demand [sic] in Russia in the coming years, agreed Roman Kuznetsov. But additional knowledge about how the sanctions are structured would come in handy to all Russian banking, finance, and legal sector employees. Understanding the ins and outs of the sanctions means you have a good chance of increasing your salary by thirty to forty percent, we were told at Hays.

Restricted Area
The first set of sanctions, occasioned by the annexation of Crimea and the conflict in Donbass, were imposed by the US, EU, Australia, New Zealand, and Canada in mid March 2014. Since then, the black lists have expanded due to the inclusion of personal sanctions (directed at specific people and companies affiliated with them) and sectoral sanctions (directed against individual industries and activities), and other countries and international organizations have joined the sanctions regime. Currently, the US has sanctioned over one hundred Russian nationals and companies, not counting foreign companies connected with sanctioned Russians. The EU has sanctioned 149 individuals and 38 companies.

Five Russian banks with ties to the Russian state have been sanctioned: Sberbank, VTB, Gazprombank, Rosselkhozbank, and Vnesheconombank. These financial institutions are not eligible for long-term financing abroad, and US and European investors are forbidden from buying shares and Eurobonds from these banks. In addition, the US has banned doing business with 33 companies in the Russian military-industrial complex, including Kalashnikov, Almaz-Antey, Rosoboronexport, Rostec, United Aircraft Corporation, and Russian Helicopters. The oil and gas industry is represented in the black lists by Rosneft, Transneft, Gazpromneft, NOVATEK, Gazprom, and Surgutneftegaz. The US and UE have imposed sanctions not only on banks, military-industrial companies, and oil and gas companies but also on completely “peaceful” firms, for example, the drinking water and beverage manufacturer Aquanika, a subsidiary of Gennady Timchenko‘s Volga Group.

In 2016, [former Assistant Secretary of State for European and Eurasian Affairs at the US Department of State] Victoria Nuland said in Kiev that the sanctions would not be lifted until Russia returned Crimea to Ukraine.

Translated by the Russian Reader. Photo courtesy of Stringer

Hooked

Stuck on the needle: oil and gas account for 98% of Russian corporate profits
Pavel Miledin
September 24, 2015
rbc.ru

RBC’s rating of the 500 largest Russian companies shows the real value of the oil and gas industry to the domestic economy. The contribution of all other companies to total gains—46 billion rubles in 2014—amounted to less than two percent

Andrei Molodkin, Hope, 2009. Acrylic block filled with Russian crude oil, edition of eight, 56 x 20 x 11 cm. Image courtesy of priskapasquer.com

According to Rosstat, Russia exported almost 500 billion dollars’ worth of goods in 2014; oil and natural gas accounted for 42% of this sum. In 2014, oil and gas revenues accounted for 7.4 trillion rubles or 51.3% of the country’s budget. If you look inside the corporate sector, the dependence on the oil and gas sector is even more impressive.

According to data from the RBC 500, a rating of the largest Russian companies, released on Wednesday, the total revenue of oil companies in 2014 amounted to 19.8 trillion rubles or 35.3% of the total revenue of all the companies in the rating, but 97.7% of all net profit, or 1.98 trillion rubles. All other sectors accounted for a mere 46 billion rubles of net profit. If only net profit is taken into account as the outcome of domestic business activity, there are, essentially, no other industries in Russia.

Our Everything
According to Oleg Buklemishev, director of the Economic Policy Research Center at the Moscow State University economics department, the date once again reveal the key story of the interaction between the Russian economy and the state, the agent that redistributes oil revenues.

“The whole history of attempts to diversify the economy has come precisely to this,” says Buklemishev.

This once again confirms that talk of diversifying the economy has just been talk, he adds.

Andrei Movchan, director of the Economic Policy Program at the Carnegie Moscow Center, thinks there is nothing unusual about all this.

“Russia is an exporting country, and all other sectors of industry dwell in the shadows of the oil industry,” he says.

According to Movchan, this is particularly noticeable during a crisis, when currency prices for commodities continue to allow the oil sector to profit.

The oil and gas sector’s net profit in 2013 was also huge, but not to the same extent. Then it amounted to 79.2% of the overall net profit of companies listed in the RBC 500.

“The devaluation of the ruble is having an impact,” explains Natalya Orlova, chief economist at Alfa Bank.

Oil and gas companies, which sell their products for hard currency, have weathered the collapse of the national currency better.

Buklemishev draws attention to the fact that the beginning of 2014 was generally good for the economy, and the effect of the sanctions and falling oil prices began to impact Russian business in the second part of the year. As late as June 2014, Brent crude oil cost $114 a barrel, which helped the oil sector show good results.

It is all a matter of revalued hard currency, argues Oleg Vyugin, board chairman of MDM Bank.

“Oil companies are chockablock with hard currency,” he says by way of explaining their brilliant 2014 results.

It is no wonder the most profitable company was Surgutneftegaz. Due in large part to its revalued hard currency savings, it made 885 billion rubles of net profit, 43% of all profits among the RBC 500.

Crisis More Noticeable
Falling corporate profits among the RBC 500 companies reveal the crisis more vividly than official data. Profits fell by nearly half (45%) from 2013 to 2014: from 3.7 trillion rubles to 2 trillion rubles. However, according to Rosstat’s data, in 2014, profits of Russian companies fell by a mere 10%, from 6.5 to 5.9 trillion rubles. Moreover, according to official statistics, 72% of companies were profitable, while 28% made a loss. Among the RBC companies, the split was slightly different: 81% were profitable, while 19% were loss making.

Movchan argues the difference in the numbers may be due to several factors. There is a “sector bias” in the rating of the largest companies. By the end of 2014, the crisis had not yet reached several sectors, for example, the service sector, which is not represented in the rating due to the absence of large companies there. Buklemishev says the more noticeable drop in profits among RBC 500 companies speaks to the fact that business has been going through difficult times.

“Profit is still a controllable variable, and in a bad situation corporations might try and show less profit in order to pay fewer taxes,” he argues.

But a revenue growth of 14%—the RBC 500 companies earned 56 trillion rubles in 2014—is merely the outcome of high inflation.

“It is practically zero in terms of tangible results,” says Movchan.

Oleg Vyugin agrees with him. According to Rosstat, inflation in 2014 was 11.4% and GDP grew by 0.6%.

“The RBC 500 data, which show a slight real growth in revenue and a fall in profits, correspond broadly to the situation in the economy,” he argues.

Small Improvements
There are a few other things worth remarking on in the RCB 500 rating. In terms of revenue (or rather its equivalent, operating income), the financial sector came in second place after oil and gas. Banks and financial companies earned 6 trillion rubles in 2014, outpacing metals and mining. It would seem that a good result for the financial sector testifies to the diversification of the oil economy.

Movchan and Buklemishev note, though, that the financial system is a function of cash flows from the oil industry, just like, however, transport and retail trade. According to Buklemishev, in 2015, the performance of banks will not be so impressive, and the sector itself will make a loss. (In 2014, the banks and financial companies in the RBC 500 showed a profit of 13.1 billion rubles.)

Another trend economists are watching is the strong growth and high net profit margins (the ratio of net income to revenue) in the Internet and online retail sector (e.g., Yandex, Yulmart, Mail.Ru Group, and Wildberries). Here, net profit is more than 50% of revenue. The telecommunication sector has also performed well in terms of profitability (11%). With a profit margin of 10%, the oil and gas industry is only in third place.

The growth of e-commerce is, apparently, one of the few trends showing that a market economy can develop normally in Russia. Oleg Kuzmin, chief economist at Renaissance Capital, argues that growth in this sector is quite understandable: cash flows from the ordinary goods and services sector are being redirected to the Internet. Another reason is that the public has been attempting to reduce its expenditures by buying cheaper goods on the web. It is no wonder that economists have pointed out the low profit margin in the retail segment—3.5% in 2014.

It is interesting to see what yields more profit to foreign companies operating in Russia. Last year, they received 7.2 trillion rubles in revenue here and earned 211 billion rubles in profit. Despite the low margins, most of their profits came from retail trade (17%), the production and sale of alcohol and tobacco (17%), and finance (10.8%). How is that not a diversified economy within Russia’s oil economy?

Translated by the Russian Reader

__________

Russia rejects criticism of greenhouse gas plan, will not amend – top Putin adviser
Andrey Kuzmin
September 23, 2015
Reuters

MOSCOW, Sept 23 (Reuters) – Russia has rebuffed calls for a more ambitious plan to cut its carbon dioxide emissions after environmentalists branded its current pledge inadequate and backward looking.

The world’s fourth largest emitter of greenhouse gases, Russia pledged in March to keep its emissions at 25–30 percent below the level it generated in 1990, the year before the Soviet Union and its vast industrial complex collapsed.

Green groups say the pledge, made ahead of a global warming summit in Paris in December, is far too easy for Moscow to fulfill because 1990 was a time when Soviet industry was a notoriously prolific polluter whereas Russia’s industrial base today is much smaller.

A group of four global climate research groups, known collectively as Climate Action Tracker, have rated Russia’s pledge as ‘inadequate’, worse than the ‘medium’ assessment they have handed out to other big polluters such as China, the United States and the European Union.

But President Vladimir Putin’s top adviser on global warming dismissed such criticism during an interview on the sidelines of a Moscow meeting of the United Nations’ International Panel on Climate Change this week.

“It is their opinion, it does not reflect anything and is not objective,” Alexander Bedritsky told Reuters, saying Russia would stick to its current plan.

“They can say whatever they want, but our commitments are based on around 70 scenarios of how the climate system will be developing.”

It is unfair to compare the Kremlin’s commitments to those of developed economies such as the United States or European Union member states because Russia is still an economy in transition, he added.

Russia’s pledge stresses the importance of increasing energy efficiency and boosting the use of renewables.

“If the contribution of Russian forests is fully taken into account, limiting greenhouse gas emissions to 70-75 percent of 1990 levels by 2030 does not create any obstacles for social and economic development,” it says.

“TRAGIC PLEDGE”
With its gigantic reserves of oil, gas and coal, Russia emits 2 gigatonnes of CO2 equivalent a year, making it the fourth largest producer of greenhouse gases after the United States, China and India.

According to Greenpeace, 85 percent of CO2 equivalent emissions in Russia come from its energy industry.

They and other green groups say Russia’s current programme is far too unambitious because the Soviet Union was on the brink of collapse in 1990—the year the programme is pegged to—and its greenhouse gas emissions therefore fell sharply as the country’s industrial base shrank.

“This pledge is a tragedy, a catastrophe,” said Vladimir Chuprov, head of Greenpeace’s energy programme.

“With this 25–30 percent commitment they are basically saying: ‘Guys, we’re staying in the 20th century with our carbon-centered technology’.”

Chuprov and fellow environmentalists want Russia, the world’s biggest country by territory, to do much more, noting that its richest company—state-owned Gazprom—is the world’s leading corporate emitter of greenhouse gases.

ANDREI-MOLODKIN-artfair-superJumbo
Andrei Molodkin, Gazprom, 2012. Image courtesy of Orel Art, via Art Paris Art Fair

Specifically, Chuprov says Russia needs to expand its use of renewable energy and try to develop new power generating technologies or risk missing out on another technological revolution.

Currently, Russia gets 90 percent of its energy from carbon fuels such as oil, gas and coal, Chuprov said. Green groups estimate that only around 1 percent of the country’s energy needs comes from renewable sources.

Green groups such as Greenpeace or the World Wildlife Fund complain that central government in Russia does not consult them enough when it comes to formulating climate change policies.

Under its existing plan, Russia would fail to meet the goal set out by the United Nations’ International Panel on Climate Change to cut emissions to 50–80 percent below 1990 levels by 2050, he said.

Bedritsky said Russia was already making good progress and that its greenhouse gas emissions would peak at 25 percent below 1990 levels by 2020. They will then fall or stay flat until 2030, he added.

“Our preparations for the (Paris) summit are not just good, we have achieved excellent results, announced our commitments on time up until the year 2020, and until 2025 and 2030,” said Bedritsky. “We will definitely fulfill our promise.”

(Editing by Andrew Osborn and Gareth Jones)