The Oligarchs are Coming

Introduction Since the late 1990s the evolution of center-periphery relationships in Russia became complicated by an additional factor that came into play as a result of the growth of capitalism and, more specifically, the territorial expansion of big businesses into the regions. Some of Russia’s major financial-industrial groups (FIGs) and the notorious oligarchs started to re-orient their activities towards regions making Russia’s hinterland a primary expansion ground for their businesses. The “oligarchs’ raid” on the regions involved not only the economic expansion of big businesses but also an active political involvement of the representatives of these FIGs in regional affairs probably best exemplified by Roman Abramovich’s bid for Chukotka’s governorship. This new trend represented a reversal of earlier tendencies in Russian capitalism and domestic capital movements. It involved big businesses headquartered in Moscow engaging in long-term investment in the regions, acquiring regional enterprises, and getting involved in regional politics. The consequences of these new developments are variegated. From the economic standpoint, the re-orientation of big businesses toward the regions is very reassuring. It reflects the growing strength of Russia’s national businesses that are now searching for opportunities to grow by investing in the country’s economy. It also means that the