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As Local Health Systems Buckle, Russia’s Oligarchs Take Charge | As Local Health Systems Buckle, Russia’s Oligarchs Take Charge |
(about 2 hours later) | |
MOSCOW — As the coronavirus pandemic gained pace in Russia this spring, a billionaire steel magnate, Aleksei A. Mordashov, called four regional governors and urged them to lock down the cities where he operates. | MOSCOW — As the coronavirus pandemic gained pace in Russia this spring, a billionaire steel magnate, Aleksei A. Mordashov, called four regional governors and urged them to lock down the cities where he operates. |
For Andrei A. Guryev, the scion of a fertilizer empire, limiting travel into two Arctic cities of 80,000 people where he runs a phosphate mine was even easier. His company owns the airport and the local ski resort that attracts outsiders. | For Andrei A. Guryev, the scion of a fertilizer empire, limiting travel into two Arctic cities of 80,000 people where he runs a phosphate mine was even easier. His company owns the airport and the local ski resort that attracts outsiders. |
“We shut them down,” Mr. Guryev said. “The decision was ours alone.” | “We shut them down,” Mr. Guryev said. “The decision was ours alone.” |
The influence of the Russian business tycoons known as oligarchs waned early this century as President Vladimir V. Putin consolidated power, transforming them from warring clans to fantastically rich families dependent on the Kremlin’s benevolence. | The influence of the Russian business tycoons known as oligarchs waned early this century as President Vladimir V. Putin consolidated power, transforming them from warring clans to fantastically rich families dependent on the Kremlin’s benevolence. |
Now, the coronavirus crisis presents them with another turning point: the greatest economic threat in decades, coupled with an enormous stress test for the state that makes their wealth possible. | Now, the coronavirus crisis presents them with another turning point: the greatest economic threat in decades, coupled with an enormous stress test for the state that makes their wealth possible. |
And so the oligarchs, with millions of employees and dozens of Russian cities reliant on their enterprises, have become central figures in the national response to the pandemic. | And so the oligarchs, with millions of employees and dozens of Russian cities reliant on their enterprises, have become central figures in the national response to the pandemic. |
Russia has reported over 177,000 coronavirus cases and more than 1,600 deaths. Roughly half the cases are in Moscow, suggesting that the rest of the country is still in the early stages of the pandemic. | Russia has reported over 177,000 coronavirus cases and more than 1,600 deaths. Roughly half the cases are in Moscow, suggesting that the rest of the country is still in the early stages of the pandemic. |
With local health systems buckling, many oligarchs are deploying millions of dollars of their own cash, along with their companies’ logistics and procurement capacity, to fight the spread of the illness, while urging slow-moving regional authorities to act with more resolve. | With local health systems buckling, many oligarchs are deploying millions of dollars of their own cash, along with their companies’ logistics and procurement capacity, to fight the spread of the illness, while urging slow-moving regional authorities to act with more resolve. |
In the process, they are revealing the Russian state’s weaknesses, and how much Mr. Putin’s system of governance still relies on informal alliances with powerful business tycoons. The depth of their coffers also puts the oligarchs in position to outlast the pandemic — unlike Russia’s reeling small and midsize businesses — meaning that their influence is poised to grow in coming years. | In the process, they are revealing the Russian state’s weaknesses, and how much Mr. Putin’s system of governance still relies on informal alliances with powerful business tycoons. The depth of their coffers also puts the oligarchs in position to outlast the pandemic — unlike Russia’s reeling small and midsize businesses — meaning that their influence is poised to grow in coming years. |
“We’re working on behalf of those people whom the state’s measures haven’t reached,” said Lyudmila A. Guseva, who is helping to implement some of the coronavirus relief efforts at Mr. Mordashov’s steel giant, Severstal. | “We’re working on behalf of those people whom the state’s measures haven’t reached,” said Lyudmila A. Guseva, who is helping to implement some of the coronavirus relief efforts at Mr. Mordashov’s steel giant, Severstal. |
Oleg V. Deripaska, the metals magnate hit by American sanctions in 2018, is paying for construction of three coronavirus treatment centers in Siberia with 160 beds. Gennady N. Timchenko, a close associate of Mr. Putin who is also under sanctions, said he would spend about $17 million to support coronavirus-related charities and buy ventilators, CT scanners and personal protective equipment for Russian hospitals. | Oleg V. Deripaska, the metals magnate hit by American sanctions in 2018, is paying for construction of three coronavirus treatment centers in Siberia with 160 beds. Gennady N. Timchenko, a close associate of Mr. Putin who is also under sanctions, said he would spend about $17 million to support coronavirus-related charities and buy ventilators, CT scanners and personal protective equipment for Russian hospitals. |
Vladimir O. Potanin, reputedly Russia’s richest man, and his mining giant Nornickel, have set aside some $150 million for the coronavirus fight. | Vladimir O. Potanin, reputedly Russia’s richest man, and his mining giant Nornickel, have set aside some $150 million for the coronavirus fight. |
And in late March and early April, as Mr. Putin took a hands-off approach to the pandemic, Mr. Mordashov helped engineer the lockdown of Cherepovets, a city of more than 300,000 people, where Severstal and its sprawling steel mill employ one in four working-age residents. | And in late March and early April, as Mr. Putin took a hands-off approach to the pandemic, Mr. Mordashov helped engineer the lockdown of Cherepovets, a city of more than 300,000 people, where Severstal and its sprawling steel mill employ one in four working-age residents. |
Mr. Mordashov told regional governors that they should “organize restrictive measures as quickly as possible” and offered his company’s help, said Alexander Shevelev, Severstal’s C.E.O. | Mr. Mordashov told regional governors that they should “organize restrictive measures as quickly as possible” and offered his company’s help, said Alexander Shevelev, Severstal’s C.E.O. |
Severstal gave respirator masks to the police and delivered mobile housing units to quarantine checkpoints. It drafted company employees to join the police on patrols. Its software engineers designed a service to allow the city to monitor quarantine compliance. It said it was procuring 20 ventilators for city hospitals and set aside corporate housing to isolate anyone arriving in the city. | Severstal gave respirator masks to the police and delivered mobile housing units to quarantine checkpoints. It drafted company employees to join the police on patrols. Its software engineers designed a service to allow the city to monitor quarantine compliance. It said it was procuring 20 ventilators for city hospitals and set aside corporate housing to isolate anyone arriving in the city. |
The Kremlin’s limited relief measures so far have offered little aid to people who are out of work, sparking growing discontent. But in Cherepovets, Severstal has mounted its own emergency relief effort. The company said it would give residents who lost income due to the crisis grocery store gift certificates of about $80 each for every household member. Russia’s minimum wage is about $160 per month. | The Kremlin’s limited relief measures so far have offered little aid to people who are out of work, sparking growing discontent. But in Cherepovets, Severstal has mounted its own emergency relief effort. The company said it would give residents who lost income due to the crisis grocery store gift certificates of about $80 each for every household member. Russia’s minimum wage is about $160 per month. |
“We are responsible for the social stability of the regions where we are present,” Mr. Shevelev said. | “We are responsible for the social stability of the regions where we are present,” Mr. Shevelev said. |
The close involvement of oligarchs in Russia’s coronavirus fight sheds light on their unwritten contract with the Kremlin. Staying in Mr. Putin’s good graces has helped them profit enormously from Russia’s immense natural-resource wealth. Despite years of sanctions and economic stagnation, Russia still has 99 billionaires, according to Forbes, the fifth-most of any country. | The close involvement of oligarchs in Russia’s coronavirus fight sheds light on their unwritten contract with the Kremlin. Staying in Mr. Putin’s good graces has helped them profit enormously from Russia’s immense natural-resource wealth. Despite years of sanctions and economic stagnation, Russia still has 99 billionaires, according to Forbes, the fifth-most of any country. |
But the oligarchs are also expected to open their coffers to support Mr. Putin’s broader goals, like the 2014 Winter Olympics in Sochi. | But the oligarchs are also expected to open their coffers to support Mr. Putin’s broader goals, like the 2014 Winter Olympics in Sochi. |
In fact, the oligarchs who have remained in business in Russia since Mr. Putin’s rise have so closely integrated their operations with the state that they are sometimes described not as private businessmen but as division managers in a larger enterprise, “Russia Inc.” | In fact, the oligarchs who have remained in business in Russia since Mr. Putin’s rise have so closely integrated their operations with the state that they are sometimes described not as private businessmen but as division managers in a larger enterprise, “Russia Inc.” |
In past years, Western officials blamed some oligarchs for lending a helping hand in election meddling and military ventures abroad, operating as a shadow hand of the state. Now, the pressing need is controlling the virus. | In past years, Western officials blamed some oligarchs for lending a helping hand in election meddling and military ventures abroad, operating as a shadow hand of the state. Now, the pressing need is controlling the virus. |
In March, the owners of Alfa Bank, Russia’s biggest private bank, donated $13 million to fight the pandemic. The money did not go to charity, but directly to the Russian government’s coronavirus task force. | In March, the owners of Alfa Bank, Russia’s biggest private bank, donated $13 million to fight the pandemic. The money did not go to charity, but directly to the Russian government’s coronavirus task force. |
“In Russia, the business community — especially big business — traditionally carries out more of a social function than it does in the West,” said Vladimir V. Verkhoshinsky, Alfa Bank’s C.E.O. | “In Russia, the business community — especially big business — traditionally carries out more of a social function than it does in the West,” said Vladimir V. Verkhoshinsky, Alfa Bank’s C.E.O. |
Updated June 24, 2020 | |
Scientists around the country have tried to identify everyday materials that do a good job of filtering microscopic particles. In recent tests, HEPA furnace filters scored high, as did vacuum cleaner bags, fabric similar to flannel pajamas and those of 600-count pillowcases. Other materials tested included layered coffee filters and scarves and bandannas. These scored lower, but still captured a small percentage of particles. | Scientists around the country have tried to identify everyday materials that do a good job of filtering microscopic particles. In recent tests, HEPA furnace filters scored high, as did vacuum cleaner bags, fabric similar to flannel pajamas and those of 600-count pillowcases. Other materials tested included layered coffee filters and scarves and bandannas. These scored lower, but still captured a small percentage of particles. |
A commentary published this month on the website of the British Journal of Sports Medicine points out that covering your face during exercise “comes with issues of potential breathing restriction and discomfort” and requires “balancing benefits versus possible adverse events.” Masks do alter exercise, says Cedric X. Bryant, the president and chief science officer of the American Council on Exercise, a nonprofit organization that funds exercise research and certifies fitness professionals. “In my personal experience,” he says, “heart rates are higher at the same relative intensity when you wear a mask.” Some people also could experience lightheadedness during familiar workouts while masked, says Len Kravitz, a professor of exercise science at the University of New Mexico. | A commentary published this month on the website of the British Journal of Sports Medicine points out that covering your face during exercise “comes with issues of potential breathing restriction and discomfort” and requires “balancing benefits versus possible adverse events.” Masks do alter exercise, says Cedric X. Bryant, the president and chief science officer of the American Council on Exercise, a nonprofit organization that funds exercise research and certifies fitness professionals. “In my personal experience,” he says, “heart rates are higher at the same relative intensity when you wear a mask.” Some people also could experience lightheadedness during familiar workouts while masked, says Len Kravitz, a professor of exercise science at the University of New Mexico. |
The steroid, dexamethasone, is the first treatment shown to reduce mortality in severely ill patients, according to scientists in Britain. The drug appears to reduce inflammation caused by the immune system, protecting the tissues. In the study, dexamethasone reduced deaths of patients on ventilators by one-third, and deaths of patients on oxygen by one-fifth. | The steroid, dexamethasone, is the first treatment shown to reduce mortality in severely ill patients, according to scientists in Britain. The drug appears to reduce inflammation caused by the immune system, protecting the tissues. In the study, dexamethasone reduced deaths of patients on ventilators by one-third, and deaths of patients on oxygen by one-fifth. |
The coronavirus emergency relief package gives many American workers paid leave if they need to take time off because of the virus. It gives qualified workers two weeks of paid sick leave if they are ill, quarantined or seeking diagnosis or preventive care for coronavirus, or if they are caring for sick family members. It gives 12 weeks of paid leave to people caring for children whose schools are closed or whose child care provider is unavailable because of the coronavirus. It is the first time the United States has had widespread federally mandated paid leave, and includes people who don’t typically get such benefits, like part-time and gig economy workers. But the measure excludes at least half of private-sector workers, including those at the country’s largest employers, and gives small employers significant leeway to deny leave. | The coronavirus emergency relief package gives many American workers paid leave if they need to take time off because of the virus. It gives qualified workers two weeks of paid sick leave if they are ill, quarantined or seeking diagnosis or preventive care for coronavirus, or if they are caring for sick family members. It gives 12 weeks of paid leave to people caring for children whose schools are closed or whose child care provider is unavailable because of the coronavirus. It is the first time the United States has had widespread federally mandated paid leave, and includes people who don’t typically get such benefits, like part-time and gig economy workers. But the measure excludes at least half of private-sector workers, including those at the country’s largest employers, and gives small employers significant leeway to deny leave. |
So far, the evidence seems to show it does. A widely cited paper published in April suggests that people are most infectious about two days before the onset of coronavirus symptoms and estimated that 44 percent of new infections were a result of transmission from people who were not yet showing symptoms. Recently, a top expert at the World Health Organization stated that transmission of the coronavirus by people who did not have symptoms was “very rare,” but she later walked back that statement. | So far, the evidence seems to show it does. A widely cited paper published in April suggests that people are most infectious about two days before the onset of coronavirus symptoms and estimated that 44 percent of new infections were a result of transmission from people who were not yet showing symptoms. Recently, a top expert at the World Health Organization stated that transmission of the coronavirus by people who did not have symptoms was “very rare,” but she later walked back that statement. |
Touching contaminated objects and then infecting ourselves with the germs is not typically how the virus spreads. But it can happen. A number of studies of flu, rhinovirus, coronavirus and other microbes have shown that respiratory illnesses, including the new coronavirus, can spread by touching contaminated surfaces, particularly in places like day care centers, offices and hospitals. But a long chain of events has to happen for the disease to spread that way. The best way to protect yourself from coronavirus — whether it’s surface transmission or close human contact — is still social distancing, washing your hands, not touching your face and wearing masks. | Touching contaminated objects and then infecting ourselves with the germs is not typically how the virus spreads. But it can happen. A number of studies of flu, rhinovirus, coronavirus and other microbes have shown that respiratory illnesses, including the new coronavirus, can spread by touching contaminated surfaces, particularly in places like day care centers, offices and hospitals. But a long chain of events has to happen for the disease to spread that way. The best way to protect yourself from coronavirus — whether it’s surface transmission or close human contact — is still social distancing, washing your hands, not touching your face and wearing masks. |
A study by European scientists is the first to document a strong statistical link between genetic variations and Covid-19, the illness caused by the coronavirus. Having Type A blood was linked to a 50 percent increase in the likelihood that a patient would need to get oxygen or to go on a ventilator, according to the new study. | A study by European scientists is the first to document a strong statistical link between genetic variations and Covid-19, the illness caused by the coronavirus. Having Type A blood was linked to a 50 percent increase in the likelihood that a patient would need to get oxygen or to go on a ventilator, according to the new study. |
The unemployment rate fell to 13.3 percent in May, the Labor Department said on June 5, an unexpected improvement in the nation’s job market as hiring rebounded faster than economists expected. Economists had forecast the unemployment rate to increase to as much as 20 percent, after it hit 14.7 percent in April, which was the highest since the government began keeping official statistics after World War II. But the unemployment rate dipped instead, with employers adding 2.5 million jobs, after more than 20 million jobs were lost in April. | The unemployment rate fell to 13.3 percent in May, the Labor Department said on June 5, an unexpected improvement in the nation’s job market as hiring rebounded faster than economists expected. Economists had forecast the unemployment rate to increase to as much as 20 percent, after it hit 14.7 percent in April, which was the highest since the government began keeping official statistics after World War II. But the unemployment rate dipped instead, with employers adding 2.5 million jobs, after more than 20 million jobs were lost in April. |
Common symptoms include fever, a dry cough, fatigue and difficulty breathing or shortness of breath. Some of these symptoms overlap with those of the flu, making detection difficult, but runny noses and stuffy sinuses are less common. The C.D.C. has also added chills, muscle pain, sore throat, headache and a new loss of the sense of taste or smell as symptoms to look out for. Most people fall ill five to seven days after exposure, but symptoms may appear in as few as two days or as many as 14 days. | |
If air travel is unavoidable, there are some steps you can take to protect yourself. Most important: Wash your hands often, and stop touching your face. If possible, choose a window seat. A study from Emory University found that during flu season, the safest place to sit on a plane is by a window, as people sitting in window seats had less contact with potentially sick people. Disinfect hard surfaces. When you get to your seat and your hands are clean, use disinfecting wipes to clean the hard surfaces at your seat like the head and arm rest, the seatbelt buckle, the remote, screen, seat back pocket and the tray table. If the seat is hard and nonporous or leather or pleather, you can wipe that down, too. (Using wipes on upholstered seats could lead to a wet seat and spreading of germs rather than killing them.) | If air travel is unavoidable, there are some steps you can take to protect yourself. Most important: Wash your hands often, and stop touching your face. If possible, choose a window seat. A study from Emory University found that during flu season, the safest place to sit on a plane is by a window, as people sitting in window seats had less contact with potentially sick people. Disinfect hard surfaces. When you get to your seat and your hands are clean, use disinfecting wipes to clean the hard surfaces at your seat like the head and arm rest, the seatbelt buckle, the remote, screen, seat back pocket and the tray table. If the seat is hard and nonporous or leather or pleather, you can wipe that down, too. (Using wipes on upholstered seats could lead to a wet seat and spreading of germs rather than killing them.) |
If you’ve been exposed to the coronavirus or think you have, and have a fever or symptoms like a cough or difficulty breathing, call a doctor. They should give you advice on whether you should be tested, how to get tested, and how to seek medical treatment without potentially infecting or exposing others. | If you’ve been exposed to the coronavirus or think you have, and have a fever or symptoms like a cough or difficulty breathing, call a doctor. They should give you advice on whether you should be tested, how to get tested, and how to seek medical treatment without potentially infecting or exposing others. |
But many executives have found that donating money is not enough, underscoring the weakness of the country’s health system and casting an unflattering light on the Russian government’s lackluster response. On March 14, when Russian officials were still widely playing down the coronavirus threat, Mr. Deripaska called on the government to close the borders and implement a 60-day quarantine. It would be more than two weeks until a nationwide, partial lockdown went into effect. | But many executives have found that donating money is not enough, underscoring the weakness of the country’s health system and casting an unflattering light on the Russian government’s lackluster response. On March 14, when Russian officials were still widely playing down the coronavirus threat, Mr. Deripaska called on the government to close the borders and implement a 60-day quarantine. It would be more than two weeks until a nationwide, partial lockdown went into effect. |
In the isolated Arctic city of Norilsk, Mr. Potanin’s Nornickel mining giant took the lead. It procured thousands of testing kits, millions of masks and 46 ventilators for the regions where it operates. It stopped charging rent to dozens of businesses and increased the internet bandwidth it makes available to cellphone operators serving the city of 180,000. | In the isolated Arctic city of Norilsk, Mr. Potanin’s Nornickel mining giant took the lead. It procured thousands of testing kits, millions of masks and 46 ventilators for the regions where it operates. It stopped charging rent to dozens of businesses and increased the internet bandwidth it makes available to cellphone operators serving the city of 180,000. |
“It’s necessary to relieve the government of some of its headache,” Mr. Potanin told the newspaper Komsomolskaya Pravda. | “It’s necessary to relieve the government of some of its headache,” Mr. Potanin told the newspaper Komsomolskaya Pravda. |
One reason the oligarchs’ role is central to Russia’s response is that around 10 percent of the population lives in far-flung “monotowns” like Norilsk that are dominated by a single employer or industry. They are also involved with some of the large, remote construction sites that have emerged as some of the country’s biggest outbreak hot spots. | One reason the oligarchs’ role is central to Russia’s response is that around 10 percent of the population lives in far-flung “monotowns” like Norilsk that are dominated by a single employer or industry. They are also involved with some of the large, remote construction sites that have emerged as some of the country’s biggest outbreak hot spots. |
For example, more than 1,900 people have tested positive for the coronavirus at the Arctic village of Belokamenka, where the energy giant Novatek is building a liquefied natural gas supply base with thousands of workers crowded into barracks. | For example, more than 1,900 people have tested positive for the coronavirus at the Arctic village of Belokamenka, where the energy giant Novatek is building a liquefied natural gas supply base with thousands of workers crowded into barracks. |
Novatek’s billionaire chief executive, Leonid V. Mikhelson, a prominent player in the global art scene, has kept a low profile during the pandemic, and his company did not respond to a request for comment. | Novatek’s billionaire chief executive, Leonid V. Mikhelson, a prominent player in the global art scene, has kept a low profile during the pandemic, and his company did not respond to a request for comment. |
In the Arctic monotowns of Kirovsk and Apatity, Mr. Guryev, the fertilizer magnate, scrambled to prevent an outbreak when a man who arrived from Cuba tested positive in March. Mr. Guryev dispatched the company jet to pick up 100 testing kits and a specialist, and flew them 1,000 miles to Apatity to examine the patient’s contacts. | In the Arctic monotowns of Kirovsk and Apatity, Mr. Guryev, the fertilizer magnate, scrambled to prevent an outbreak when a man who arrived from Cuba tested positive in March. Mr. Guryev dispatched the company jet to pick up 100 testing kits and a specialist, and flew them 1,000 miles to Apatity to examine the patient’s contacts. |
Mr. Guryev’s company, PhosAgro, also said it had bought ambulances, ventilators and personal protective equipment for the medical workers. In some cases, Mr. Guryev said, the public sector cannot act with the necessary urgency — “for them, it’s a bureaucratic process.” | Mr. Guryev’s company, PhosAgro, also said it had bought ambulances, ventilators and personal protective equipment for the medical workers. In some cases, Mr. Guryev said, the public sector cannot act with the necessary urgency — “for them, it’s a bureaucratic process.” |
“For us it’s a same-day decision, often it’s my own personal decision,” Mr. Guryev said. “Buying those tests — I dealt with it personally. I personally dealt with the P.P.E. and I personally dealt with the ventilators, because all this had to be done yesterday.” | “For us it’s a same-day decision, often it’s my own personal decision,” Mr. Guryev said. “Buying those tests — I dealt with it personally. I personally dealt with the P.P.E. and I personally dealt with the ventilators, because all this had to be done yesterday.” |
Oleg Matsnev and Andrew E. Kramer contributed reporting. | Oleg Matsnev and Andrew E. Kramer contributed reporting. |