Billionaire Businessman Viktor Vekselberg Could Be Appointed Kamchatka Governor

MOSCOW, (RIA Novosti political commentator Vasily Kononenko)

An unusual model for relations between the authorities and business has arisen from an initiative by Russian presidential envoy Konstantin Pulikovsky.

Pulikovsky has suggested that the well-known businessman Viktor Vekselberg be nominated as a candidate for governor of the Kamchatka territory (this is what the region will be called after the merger of the Kamchatka region and the Koryak autonomous area in 2007). Admittedly, at present, the idea is just being mooted. Pulikovsky has only said that he would put Vekselberg's name on the list of potential candidates. The candidate himself responded by saying the proposal was "flattering yet premature." After all, the gubernatorial election in the easternmost part of the Far East of Russia will not be held for another two years.

Nevertheless, many people have been tempted by the idea of having a wealthy businessman run the regions, and consider it a logical move. It provides new opportunities to tackle the problem of the shortage of personnel in impoverished regions and could also enable these regions to attract considerable revenues from the private sector.

Vekselberg's name surfaced when the date for the referendum on the merger of Kamchatka and the Koryak autonomous area was announced (October 23, 2005). Public opinion polls show that the absolute majority of the residents of the two regions are in favor of the merger. The territorial parliament, to be elected in 2007, will approve the candidacy of the head of the new region nominated by the Russian president. The current governor of Kamchatka, Mikhail Mashkovtsev, has repeatedly stated that he will not stand for election as the head of the new unified federation subject. As for Koryak Governor Oleg Kozhemyako, his chances of being elected will be slim in comparison with those of the Moscow tycoon.

In support of his proposal, Pulikovsky cited the example of Roman Abramovich, who after his election as governor of Chukotka, re-registered his main firms in Chukotka. Abramovich's companies now provide about 80% of the region's tax revenues. The people of Chukotka have asked their governor to stay for a second term and Pulikovsky backs this idea. "This is an example of very good work to combine big business and the interests of the territory," Pulikovsky said.

Billionaire businessman Vekselberg is known worldwide as the art patron who brought back to Russia a collection of Faberge jewelry, including nine Easter eggs worth $100-120 million. However, he could afford giving Russia such a gift. Vekselberg co-owns major companies such as SUAL and TNK-BP. He is said to be the third richest Russian. He is currently in the process of buying the company Koryakgeologodobycha. The authorities hope that the governor-tycoon would use his own money to support the territory entrusted to him. Vekselberg's success in business and his desire to protect his own reputation could serve as a guarantee against possible failures. In other words, wealthy businessmen should not only make personal fortunes but also help the Motherland.

However, Vekselberg is a very cautious man. He is one of the few billionaires who managed to escape the wrath of the nation and pressure from the authorities. It is therefore very unlikely to expect that he will suddenly and unconditionally agree to stand for election. Speaking to RIA Novosti, people close to the billionaire indirectly confirmed this view. The Russian presidential administration also considers Pulikovsky's proposal to be "premature."

The situation may change radically by 2007. Despite the protests of the region's senior officials, who do not want outsiders in their ranks, the residents of Kamchatka may well come out in support of a man capable of solving the region's complex problems.