Loans for shares scheme

Beginning in 1995, Boris Yeltsin's government began privatizing state-owned shares in companies through a loans for shares scheme. The scheme helped with "fundraising" for Yeltsin's 1996 reelection campaign and restructuring freshly-sold companies at the same time (in order to outweigh communist sympathizers as one source speculated).

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Russian bankers constituted the majority of those who have provided the funds (see Letter of thirteen). The rest included such entities as Stolichny bank (Russian: Столичный банк) and World Bank (who made a loan for a small percentage of the Sibneft oil company) and even some targeted investments from USAID in assistance to Chubais.

The scheme was primarily overseen by Anatoly Chubais who was linked to USAID program managed by head of the Harvard Institute for International Development (H.I.I.D). at the time.

The scheme implementation ultimately resulted in the emergence of an influential class of enterprise owners, known as Russian oligarchs.

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