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Six years after moving from Omsk to participate in Russia's Rural Doctor program, Marina Cheremisina is now facing criminal embezzlement charges over money she received as part of the scheme.
Six years after moving from Omsk to participate in Russia's Rural Doctor program, Marina Cheremisina is now facing criminal embezzlement charges over money she received as part of the scheme.

In 2017, Vladimir Sotnikov graduated from Tomsk Medical University and joined the government's Rural Doctor program, an initiative aimed at encouraging young medical professionals to work in remote rural locations.

Sotnikov was sent to his home village of Aleksandrovskoye in a remote northern corner of Tomsk Oblast, nearly 1,600 kilometers from the provincial capital. The local, 77-bed hospital serves the entire, sparsely populated region.

"My friends and relatives were there," Sotnikov said, recalling his joy at being able to return home. "Everything was familiar to me. I was glad to go back to my home."

Two years later, however, Sotnikov is frustrated and disenchanted.

"In school, they taught us to heal people. But in this hospital, we just forget about being doctors," he said. "All they want is to be able to send positive statistics to their bosses."

He cited a recent "unofficial order" to register all heart-disease patients over the age of 60 as suffering from other illnesses.

"That's how they reduce the mortality from heart disease, and officials can go on television and report that everything is fine here, that people live long and happy lives before dying of old age," Sotnikov said.

Vladimir Sotnikov (file photo)
Vladimir Sotnikov (file photo)

Sotnikov described some of the hospital's practices as immoral, and others as outright illegal. Three times, he told RFE/RL, he was ordered to fill out false death certificates; after that, he refused. He said he was given two reprimands after challenging this and other hospital practices, after which he was fired.

The 30-year-old is challenging his dismissal in court. If he loses, he will have to repay the 1 million rubles ($15,200) he was given by the government as a Rural Doctor program incentive. What's worse, Sotnikov said, his medical career will likely be over.

"If they fire me, I won't be able to work as a doctor anymore -- no one will hire me with such a reputation," he told RFE/RL. "It doesn't matter that there's a shortage of qualified personnel in Russian medicine and hospitals are begging for young doctors."

Catastrophic Shortage

The Russian government created the Rural Doctor program in 2012 to cope with a catastrophic shortage of qualified medical personnel far from big cities. The Health Ministry reported that the number of doctors in rural areas had declined by 4 percent in the five years before the program was created.

Under the plan, young specialists receive a lump payment (worth $30,500 when the program began and $15,200 now) for agreeing to work in a rural health facility for at least five years. Local health departments often provide additional incentives as well.

Although the Health Ministry has not released comprehensive data on the program, it has been considered a success generally and the government says "thousands" of doctors have participated.

A rural doctor makes her way to a patient in a country village. (file photo)
A rural doctor makes her way to a patient in a country village. (file photo)

In his February 20 state-of-the-nation address, President Vladimir Putin praised it and called for its expansion to include older doctors. He conceded that a shortage of personnel remains a critical issue for rural health care.

But recent months have brought increasing indications, like the Sotnikov case, of problems in the Rural Doctor program. On March 1, a local official in the Karymsky Region of Zabaikalsky Krai, in the Far East, complained that many program participants were giving the government its money back and leaving.

"We had high hopes for the Rural Doctor program," regional deputy chief of staff Valentina Kuznetsova was quoted as saying, "but unfortunately people are giving their million [rubles] back and leaving the region. Generally, this is because of poor working conditions, a lack of modern equipment, and a lack of housing for medical workers. In the past 15 years, the region has given young doctors 11 apartments -- but they do not belong to the region. The doctors privatize them, sell them, and leave."

As a result of personnel shortages, medical facilities in the remote region are being closed down.

"We want to work, but a lack of staff prevents this," local midwife Svetlana Lukyanova told a local television station in late February.

In Tomsk Oblast, where Sotnikov worked, Deputy Governor Ivan Deyev told journalists on February 6 that 700 doctors had been deployed to the region since the Rural Doctor program began in 2012 and 20 percent of them did not complete their contracts.

"There are various reasons," Deyev said. "Some don't like the remoteness; some are not prepared for the conditions. We often get doctors from the European part of Russia who aren't used to temperatures around minus-40 Celsius."

Shuttered Facilities

In the town of Susuman in Magadan Oblast, the average age of doctors at Susuman District Hospital is about 75, the hospital's head doctor, Igor Samsonvich, told local media in January. Samsonovich said the main problem is that the Rural Doctor program has not been activated in the region, and young doctors are drawn to other areas instead by the promise of 1 million rubles.

Local residents, Samsonvich said, often travel 100 kilometers to the village of Yagodnoye -- or even further, to Magadan itself -- to see a doctor.

In Nizhny Novgorod Oblast, surgeon Yury Korovin, who works at a hospital in Okulovka, complained to the independent Alliance of Doctors trade union that Putin's orders to support local medicine are being ignored and, instead, facilities are being shuttered.

"We have two doctors who came to us and who were supposed to get 1 million rubles from the Rural Doctor program," Korovin said in an interview that was broadcast on the YouTube channel of opposition politician Aleksei Navalny. "But they haven't received anything."

"We have many cases where participants were not paid anything under the program," Alliance for Doctors Director Anastasia Vasilyeva told RFE/RL. "Bureaucrats are trying to squeeze the money, and so they find reasons."

Vasilyeva said she knew of a similar case in the far western Kaliningrad Oblast.

There, 39-year-old Marina Cheremisina is facing criminal embezzlement charges. Six years ago, she and her family moved from Omsk to the city of Bagrationovsk under the Rural Doctor program. She got her million rubles and used it to buy a plot of land where they planned to build a house. But in June 2017, two months after her fourth child was born, Federal Security Service (FSB) agents showed up at her door. According to prosecutors, Cheremisina defrauded the state by working the first two years of her Rural Doctor stint in Bagrationovsk, which is too large to qualify for the program.

Cheremisina explained that she was originally assigned to work at a village hospital in Dolgorukovo, about nine kilometers from Bagrationovsk. But that hospital was administratively part of the city hospital in Bagrationovsk, and after she had worked in Dolgorukovo for a few months the director of the hospital in Bagrationovsk ordered her to work temporarily for him because of a critical shortage of doctors. Local health officials knew about the assignment and signed off on her documents.

For the last two years of her Rural Doctor stint, she worked a hospital in the village of Nivenskoye, about 25 kilometers from Bagrationovsk. She received a commendation for excellent work and her Rural Doctor contract was extended to make up for the time that she had worked in the city. She was working under the terms of that extension when the FSB came calling.

Now the mother of four faces up to 12 years in prison if convicted on two counts of embezzlement. She is being asked to repay the 1 million rubles plus 790,000 rubles that she earned as salary during the period in question.

"I am 100-percent certain that in the case of this Kaliningrad doctor, the government is trying to get out of its obligations," Vasilyeva told RFE/RL. "I am ready to defend this doctor -- the situation is unprecedented."

Written by RFE/RL senior correspondent Robert Coalson based on reporting by RFE/RL Siberia Desk correspondents Yulia Paramonova and Roman Chertovskikh.
Private investment bank Troika Dialog, run by Ruben Vardanyan (right, with George Clooney in Yerevan in 2016), is allegedly the entity responsible for establishing and operating the scheme.
Private investment bank Troika Dialog, run by Ruben Vardanyan (right, with George Clooney in Yerevan in 2016), is allegedly the entity responsible for establishing and operating the scheme.

An almost $9 billion global money-laundering scheme allegedly set up and run by Russia's largest private investment bank and having close ties to the country's ruling elite has been uncovered by the Sarajevo-based Organized Crime and Corruption Reporting Project (OCCRP).

An OCCRP investigation published on March 4 alleges that the $8.89 billion scheme, dubbed the Troika Laundromat, allowed corrupt politicians and organized-crime figures to launder funds, evade taxes, hide assets abroad, and carry out other illegal activities.

The investigation singles out Sergei Roldugin, the Russian cellist who is one of Russian President Vladimir Putin's oldest friends, as one of the main beneficiaries of the scheme.

The OCCRP, a group that has previously exposed two other such schemes, known as the Russian and the Azerbaijani laundromats, says the investigation was made possible by one of the largest leaks of banking transactions ever, obtained together with Lithuanian news site 15min.lt.

The leak, which was compiled from multiple sources, involved more than $470 billion sent in 1.3 million transactions from over 238,000 companies and people.

Paul Radu, OCCRP co-founder and project coordinator, told RFE/RL via Skype from Bucharest that the scheme was just the "tip of the iceberg."

"The reality is that there are many 'laundromats' out there, and these are not just 'laundromats' that help the elite in Azerbaijan and in Russia, and in these former Soviet countries. There are 'laundromats' that serve criminal groups -- large criminal groups, like drug groups from Mexico."

Journalist: Russia-Based Money-Laundering Scheme Is 'Tip Of The Iceberg'
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The OCCRP says that together with its 22 partners from around the world, it was able not only to identify the Troika Laundromat's beneficiaries, but also to expose the entity responsible for establishing and operating it.

The entity was identified as private investment bank Troika Dialog, once Russia's largest, run by Russian-Armenian investment banker Ruben Vardanyan.

The OCCRP says that the Troika Laundromat, which functioned from 2006 to early 2013, was formed by at least 75 interconnected offshore companies, with at least 35 of them opening accounts at Ukio Bankas, a troubled Lithuanian bank that closed in 2013.

"Under the direction of Troika Dialog, billions of dollars from Russia flowed into these Ukio accounts," the OCCRP investigation says.

"The money was broken up and transferred among the Laundromat companies before being sent onward to various recipients, known and unknown. The transactions were mostly bogus, supported by fake paperwork describing the trade of nonexistent goods. On its way out of the system, the money passed through correspondent bank accounts in the West, typically through Austrian and German banks."

At the time, Vardanyan, considered by many a pro-Western, progressive figure, was Troika Dialog's president and chief executive officer.

But the OCCRP says that whether he knew of the scheme is "not clear," adding, "There is no definitive evidence that he did."

The group quoted Vardanyan as saying in an interview that his bank did nothing wrong and that it acted as other investment banks did at the time.

Vardanyan also said that he couldn't have known about every deal his bank facilitated for his clients.

The investigation says Roldugin obtained $69 million through the Troika Laundromat.

It is not the first time that Roldugin's name has been connected with a money-laundering investigation. In 2016 his name was mentioned in the so-called Panama Papers, where he appears as as owning a network of offshore firms that have handled billions of dollars and have had business ties to wealthy tycoons seen as close to Putin. Roldugin has denied any wrongdoing.

According to the OCCRP investigation, the Troika Laundromat was more than just a money-laundering scheme, being used also as "a hidden investment vehicle, a slush fund, a tax-evasion scheme, and much more."

The investigation discovered that portions of the money came from high-level financial frauds, such as the Magnitsky case, which led to the death in 2009 of financial-fraud lawyer Sergei Magnitsky in a Russian jail after he exposed a scheme in which officials allegedly defrauded the Russian state of $230 million.

It also cites the Sheremetyevo Airport fuel fraud of 2012, when a network of ghost firms and proxies sold fuel to Moscow's main airport at inflated prices.

The Troika Laundromat allowed members of Russia's business and political elite to secretly acquire shares in state-owned companies, or to buy real estate both in Russia and abroad, while in the official documents, the owners of the offshore companies that made this possible were Armenian farmers living in rural areas, the OCCRP investigation has found.

In a statement, Transparency International said that the OCCRP investigation showed the "glaring shortcomings" in anti-money-laundering systems in Europe, and made the case for an EU-wide anti-money-laundering supervisory authority.

"The European banking system should be a firewall that stops corrupt money from Russia and elsewhere being siphoned out of these countries' economies. Instead, we see time and again how easy it is to launder and hide the proceeds of corruption, tax evasion, or other criminal activities in Europe," the Berlin-based corruption watchdog said.

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