Real housewives of Moscow.

What women really think about news, politics, and culture.
July 26 2010 10:23 AM

Real Housewives of Moscow

And the crazy money they make off their husbands' jobs.

Diamond ring. Click image to expand.

A strange thing happened in late June, when the big Russian Internal Ministry bosses disclosed their earnings and those of their family members, thanks to President Dmitry Medvedev's new anti-corruption measures. The surprise didn't come from the men: The head-honcho cops were the fat cats everyone assumed them to be, declaring incomes that strangely exceeded that of the president. And the ranks of the obscure upper-middle management fittingly declared modest incomes, usually topping at out around $50,000. A Russian-made car here, a modest apartment there.

But the wifely half of the family disclosures was far more revelatory. There was, for example, the amazing financial statement of the spouse of Viktor Smirnov, the deputy director of the Russian Internal Ministry's Center to Ensure Operation Performance to Combat Extremism. In 2009, a year in which the Russian economy struggled to get back on its feet after the financial crisis turned it virtually inside-out, Mrs. Smirnov made $500,000. She also owns two plots of land, each about 40 acres. She has shares in two apartments as well as in a housing complex, plus a Subaru Outback, an industrial truck, and a BMW 3-Series, which can retail for over $60,000. What does Mr. Smirnov own? One-quarter of one apartment.

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Others wives flourished, too, like the Chechen one who owns 10 hectares of land, two apartments, a summer cottage, a pig farm, two cattle barns, and one slaughterhouse. Her husband, the deputy head of the Chechen Internal Ministry, owns exactly one trundly Russian-made hatchback.

What's happening here is, of course, quite clear: corruption, pure and simple—the very sort Medvedev is making a show of rooting out by requiring his employees to declare their incomes. If, in a superficial stab at transparency, you are forced to disclose your assets, how do you, as a government employee making a pittance, conceal all the "left"—or dirty—money you made by using your uniform to squeeze it out of people? Register it in the wife's name. The wives aren't limited in their salaries the way the men are. So technically, they can have all the goodies that come from the extortion or embezzlement of their husbands.

But while using your wife as an offshore bank account is a simple—and universal—trick to slick your way through disclosure on a loophole, there are also broader consequences for millions of Russian working women. Most of them are not the wives of crooked cops or officials who use their government positions to loot the Russian state. Most of them, in fact, are the sole bread-winners in their families, despite the country's macho fantasies of itself. Most Russian women still work and, with male life expectancy at 62, provide much of the household income into their senior citizenship. Their struggles are nowhere reflected in the mirror held up by Mrs. Smirnov. And yet she's the cultural icon they're stuck with.

According to a poll conducted after the disclosures, no one is falling for the spousal Internal Ministry accounting trick. Asked "Why do you think that many wives of high-ranking civil servants have incomes that exceed their husbands' by several factors?" a full 84 percent of Russians responded that it was because "the resources of power"—connections, access, etc.—of these civil servants "is used by members of their family to conduct private business and increase the family income." In a country so rife with corruption that Transparency International ranked it on par with Zimbabwe, Russians are surely right not to buy the fictions of the high-rolling wives of modest civil servants.

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