Dec 1, 2010

The Russian mafia in Spain

 

From: Manuel Sotil <msotil@gmail.com>
Date: Wed, Dec 1, 2010 at 5:45 PM
Subject: The Russian mafia in Spain
To: ReporterNotebook <RePorterNoteBook@gmail.com>


The traveler / tourist in Spain, will not fail to notice the number of modern buildings that are half or totally empty.

In the last 10+ years, there has been a construction and real estate boom in Spain similar to the construction / real estate bubble that busted here in the US. The preferred mode of ownership is the condominium, usually in high rise building.
The cost of such units is not cheap. In the Madrid area (suburbs) for instance, a condominium unit of about 1,000 square feet will easily go from 300,000 euros (and up). Looking at the newspaper ads, one will find plenty of units for sale, but little if any is being given away.

The difference is that in Spain, there are no distress sales, no fire-sales or foreclosures that visible to the casual observer. Banks have been severely affected by their (one can say greedy or ill advised) purchase of garbage "AAA" US securities, like those packaged by Goldman Sachs, but not because of reckless real estate loans. So it appears that the housing units will sit there until eventually buyers show up with money in their hands.

The reason for this is that much of that construction boom was paid for in cash by Russian mafiosi. They are just laundering and parking money, even though they probably were not planning on waiting that long for their money to come out of the laundry. So the building boom was paid for in cash (brought in suitcases into the country?). No construction / real estate loans.

Spanish authorities have arrested more than 60 suspects, including the top four mafia bosses outside Russia. A Spanish prosecutor, José González, who has spent more than a decade trying to unravel the activities of Russian organised crime in Spainhas summarized the situation as follows:

>>

In a startling briefing for US officials in January, González said Russia was a "virtual mafia state" in which "one cannot differentiate between the activities of the government and OC [organised crime] groups".

>>

No wonder Putin was so lenient with Boris Yeltsin, letting him go home unmolested to enjoy his booze and his loot. Likewise, Putin has been very in a very cozy relationship with the Oligarchs, which were the beneficiaries of the breakup of the Soviet Union and re-distribution of immense wealth.

By the way, all the oligarchs are Jewish.


The unflattering assessment of Vladimir Putin, has come out in the Wikileaks, and has evidently hit the mark.  For those who are too upset about the revelations of the foibles and wrong doings our own officials, we can say: That's nothing. You ought to see the other guy! 

http://www.guardian.co.uk/world/2010/dec/01/wikileaks-cables-russia-mafia-kleptocracy

Manuel Sotil



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