Reining in Putin's Cronies

Moscow is desperate for cash. In the midst of a recession caused by low oil prices, Western sanctions and anemic foreign investment, the government needs revenue to meet budget shortfalls. The Kremlin has already cut the government budget twice since the end of 2015 -- 10 percent each time. It now aims to keep this year's budget deficit below 3 percent of gross domestic product. So it has turned to Russia's massive state-owned corporations for help. Russian Finance Minister Anton Siluanov is drafting directives that would require these companies to pay a minimum of 50 percent of their net profits via dividends to the government. But state firms and their powerful patrons, known as the silovarchs, are pushing back against the proposal....