Support The Moscow Times!

Fraud Breeding Terrorism

PYATIGORSK — Fraud and other financial machinations, not the absence of an ideology, is the real cause of terrorism and extremism in the North Caucasus Federal District, Alexander Khloponin, presidential representative to the region, said at a meeting Monday summing up results of prosecutors' work in the North Caucasus and Southern federal districts in the first half of this year.

"Everything that is happening in the North Caucasus, i.e. the breeding ground of terrorism and extremism, is less related to ideology and more related to divvying up financial resources available on the market," he said. The budget is damaged a lot by excise tax and VAT fraud, he said.

"The regional budget fails to collect about 8 billion rubles [$275 million] in excises, including those on alcohol. I have not seen any related criminal cases. The damage from VAT fraud is nearing 10 billion rubles," he said.

"All that funds extremism, banditry and terrorism," Khloponin concluded.


Read more

Independent journalism isn’t dead. You can help keep it alive.

The Moscow Times’ team of journalists has been first with the big stories on the coronavirus crisis in Russia since day one. Our exclusives and on-the-ground reporting are being read and shared by many high-profile journalists.

We wouldn’t be able to produce this crucial journalism without the support of our loyal readers. Please consider making a donation to The Moscow Times to help us continue covering this historic time in the world’s largest country.