Putin's People Summary

How did an obscure KGB officer manage to rise to the top of Russia and reshape global politics?

1. Putin's foundation: A lifelong ambition to serve the KGB

Vladimir Putin’s fascination with the KGB began in childhood. This dream drove him to carefully plan his education and ensure he followed the directives of KGB officers. His judo training mirrored his steely discipline and determination.

Putin’s first major assignment came in Dresden, East Germany, in the 1980s. He worked on covert operations, aligning closely with the Stasi, East Germany’s infamous secret police. One of his roles involved linking with and training Marxist groups like the Red Army Faction to undermine Western institutions.

The environment in Dresden shaped Putin’s mindset and tactics. The covert missions, agent recruitment, and close collaboration with one of Europe’s most oppressive regimes became the building blocks of his later strategies in politics.

Examples

• As a boy, Putin was fixated on spy movies, fueling his desire to become an operative.
• His loyalty to the KGB saw him rise to prominence in Dresden, despite East Germany’s looming economic collapse.
• Putin’s Stasi ID card provided unmatched access for recruiting agents.

2. Russia in the '90s: An era of oligarchies

After the collapse of the Soviet Union, Russia experienced sweeping changes under President Boris Yeltsin, including economic liberalization. This period saw the rise of oligarchs—young businessmen who acquired significant power by exploiting privatization reforms like the loans-for-shares initiative.

Yeltsin’s policies dismantled traditional institutions such as the KGB. However, former KGB operatives remained in strategic sectors like oil and gas. Meanwhile, the newly-minted oligarchs reaped massive economic benefits from shady privatization deals.

This struggle for dominance left the KGB’s legacy at odds with a new elite class. It wasn’t until Putin’s rise in 1999 that former KGB powers started reclaiming their influence.

Examples

• Oligarchs like Vladimir Potanin gained major stakes in industries, such as Norilsk Nickel, from loans that the government failed to repay.
• Yeltsin’s democratic reforms weakened centralized state controls, enabling chaotic power grabs.
• Despite privatization, KGB operatives maintained significant influence in certain industries.

3. How Putin secured power in St. Petersburg

Returning to St. Petersburg in 1990, Putin aligned himself with Anatoly Sobchak, a pro-democracy figure who ironically maintained covert ties with the KGB. As Sobchak’s right-hand man, Putin maneuvered himself into key positions of power.

St. Petersburg was rife with economic chaos. Putin leveraged this to cement the KGB’s influence by generating financial slush funds and controlling critical sectors like the seaport and oil terminals. These resources provided the KGB with financial clout to exert control over the city’s economy.

This era marked Putin’s skill in exploiting instability to build a network of loyalists and establish control over lucrative assets essential to Russia’s economy.

Examples

• Sobchak’s mayoral victory allowed Putin to position himself as the key liaison with the KGB.
• A $95 million food-import budget was diverted into KGB-controlled slush funds instead of feeding the city.
• The Tambov organized crime group worked alongside Putin’s allies to control the seaport.

4. The rise of a powerful Moscow player

Putin’s transfer to Moscow marked the beginning of his meteoric rise. In under four years, he moved from overseeing foreign property to leading the FSB, Russia’s successor to the KGB. His television appearances during the 1999 Chechen bombings cemented his image as a strong leader.

Some allege the FSB orchestrated the bombings to frame Chechen rebels, sparking a second Chechen war that boosted Putin’s popularity. Regardless of the truth, Putin stepped into the role of national defender, positioning himself as Yeltsin’s obvious successor.

Putin’s ability to leverage fear and crisis fundamentally changed the power dynamics in Russia, restoring security agencies like the FSB to the fore.

Examples

• Putin’s appointment as head of the FSB showcased his loyalty to former KGB figures.
• The Chechen airstrikes following the bombings rallied public opinion behind him.
• By December 1999, Yeltsin formally passed the presidency to Putin.

5. Controlling the media, silencing oligarchs

Putin didn’t immediately move toward autocracy, but early warning signs emerged when he targeted independent media outlets. Oligarchs like Boris Berezovsky felt Putin’s wrath after criticizing him through platforms such as ORT television.

Putin’s strategy became clear: consolidate control over information and liquidate dissenting voices. After ousting Berezovsky, Putin accused another oligarch, Mikhail Khodorkovsky, of corruption. Khodorkovsky had resisted the Kremlin and funded political opponents. His arrest and Yukos’s breakup ensured Kremlin dominance over the oil industry.

These takedowns signaled the end of powerful oligarchs dictating terms to the Kremlin. The balance of power had shifted, firmly in Putin’s favor.

Examples

• ORT aired footage critical of Putin’s handling of crises, prompting renewed state oversight.
• Khodorkovsky’s arrest and eight-year sentence showcased punitive measures against dissenters.
• Yukos’s assets were absorbed into Rosneft, increasing state control over oil.

6. Terrorism as a tool for consolidating power

In 2003, Chechen terrorists seized a Moscow theater, resulting in 900 audience members being taken hostage. The Kremlin’s response, gassing the captives and insurgents alike, led to over 100 civilian deaths and raised allegations of FSB involvement in staging the crisis.

The incident underscored the Kremlin’s use of terrorism to justify increased military actions. Public support for Putin surged as he positioned himself as the defender of national stability.

These events helped craft a narrative of a strong Russia under siege, reinforcing Putin’s centralization of power.

Examples

• The Dubrovka theater siege ended in a disastrous gas attack, with FSB forces shooting perpetrators.
• FSB chief Nikolai Patrushev was accused of orchestrating crises to favor Putin.
• Putin exploited the siege to escalate military intervention in Chechnya.

7. Exporting influence via financial networks

With Russia’s oil wealth expanding, Putin turned efforts abroad. The Kremlin funneled cash through front companies, reaching European capitals like London. Russia’s dirty money merged with Western economies, manipulating bureaucracy and bypassing regulations.

The financial influx extended Russia’s reach. The purchase of Chelsea Football Club by oligarch Roman Abramovich, for example, was less about football and more about embedding Russian influence in Britain.

Putin’s financial strategies weren’t merely economic; they were political tools designed to secure leverage over Western stakeholders.

Examples

• Putin’s ally Abramovich spent $140 million for Chelsea FC, softening British perceptions of Russian interests.
• Bank Rossiya, under Yury Kovalchuk, became a hub for illicit financial transactions.
• Shell companies funneled millions into London property and luxury markets.

8. Political manipulation in Europe and America

After annexing Crimea in 2014, Russia backed anti-establishment movements in Europe. By bolstering radical parties and funding disinformation campaigns, the Kremlin sowed division across the EU and NATO.

In the US, Trump’s 2016 election gave Putin an unexpected ally. Though direct links remain debated, Trump’s anti-NATO rhetoric aligned with Putin’s objectives, further securing Russian geopolitical interests.

The information age handed Putin new tools to exploit the vulnerabilities of liberal democracies.

Examples

• Pro-Russia parties in Hungary, Bulgaria, and Austria received Kremlin-backed funding.
• Russian hackers intervened in the US presidential election via leaked Clinton emails.
• Brexit’s leading figures had questionable relationships with Russian-linked donors.

9. Economic and cultural strategies intertwined

Putin’s methods weren’t only financial or military; culture played a role too. By promoting Orthodox Christian values and funding pro-Kremlin NGOs, the Kremlin expanded a conservative ideology abroad.

This cultural push reinforced Russia’s narrative as a bastion of tradition against Western liberalism. Simultaneously, hidden financial networks ensured that this ideological expansion had the funds to thrive.

This two-pronged approach—money and culture—secured influence without direct confrontation.

Examples

• NGOs promoting Orthodox values funded youth camps and separatist initiatives.
• Russia’s media narratives painted Western liberalism as decadent and fragile.
• Funds were directed toward European parties hostile to the EU.

Takeaways

1. Study the intersection of politics and business to understand how leaders consolidate power.
2. Be vigilant about hidden financial networks influencing policies and media in democratic societies.
3. Learn about the impact of cultural narratives in shaping international relations.