Once Upon a Time in Russia Read Free

accountable auto conglomerate.
    Working his way deeper into the sprawling corporate behemoth, he’d quickly realized that the men who’d been placed in charge of AvtoVAZ were functionaries of the old world: dinosaurs who didn’t understand the economic changes exploding around them. These Red Directors, as the history books would eventually label them, had been handed the reins of major companies across every industry by a government that itself hardly understood the capitalist world that perestroika had unleashed.
    In the back of the Mercedes, Berezovsky’s attention settled on a pair of Ladas parked next to each other in the driveway of a two-story office supply company a few buildings down from his headquarters. He could envision it all in his head, the journey those automobileshad taken to get into that driveway. Birthed on an assembly line in the vast manufacturing plant on the banks of the Volga river, then a lengthy trek via barge and truck to the urban centers where the buying public lived; on to guarded dealer lots, where the cars would be briefly stored before finding their way into a showroom. And then the final transaction itself, rubles changing hands, usually through a “connected” middleman—along with a silent prayer that the seeds of cash would somehow bear automotive fruit.
    So much distance traveled, so much time wasted: but in this situation, Berezovsky had realized, they weren’t simply minutes to be mourned. These were minutes to be utilized . The Americans had a saying, born of capitalism: time is money. Berezovsky had made his first fortune off the literal application of that cliché.
    Berezovsky’s Mercedes slipped past the driveway and the pair of Ladas, then worked its way by another row of parked cars—a Toyota, a handful of older AvtoVAZ models, then a dust-covered German-made Opel, squatting directly in front of a curbside fruit stand. Berezovsky didn’t spend a lot of time thinking about his past, but it still gave him pleasure to remember the scheme that had first put him on the map. It wasn’t something he would have talked about in an interview, nor was it something an interviewer would ever have dared ask him about. Even so, he was quite proud of the simple elegance of his first real venture.
    Manufacturing line to consumer, an incredible journey of miles and minutes: these had been the perfect ingredients for an epic level of arbitrage. In the free-fall economy of Russia’s teenage capitalism, time was usually considered an enemy to money. Double- and triple-digit inflation had turned every ruble into a rapidly leaking balloon, shrinking by the second. But Berezovsky had been able to turn this enemy to his advantage. He had come up with a scheme to take alarge number of cars on consignment, paying the Red Directors only a nominal down payment, which, for the most part, they had happily pocketed. Then Berezovsky sold the cars through his various dealerships. After that, he’d wait months—or even years—to make good on the balance of what he owed AvtoVAZ, letting inflation do its work. By the time he’d paid off his debt, he was putting down kopecks on the ruble. In short order, Logovaz was earning more than six hundred percent profit on every car it sold.
    And that had only been the beginning. Berezovsky had built on his reputation as the premier Lada dealer to open a banking fund to pre-order even more cars. He’d raised almost sixty million dollars toward that end—money he was in no rush to turn over to AvtoVAZ, or anyone else.
    Perhaps the most incredible thing about his venture was that none of what he was doing was technically illegal. It was simply arbitrage, a mathematical and ambitious mind taking advantage of an inefficiency in an existing market. Of course, the fact that Berezovsky hadn’t broken any explicit laws didn’t mean he hadn’t ruffled any feathers. The car business, like every