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‘Russia's biggest oppositionists are behind the walls of the Kremlin’ ‘Meduza’ speaks to the businessman who shocked this week's Moscow Economic Forum

Source: Meduza

Dmitry Potapenko, a businessman and a partner at the Management Development Group, was a guest at this week's Moscow Economic Forum. When given the floor, he warned his audience that he would be brief. What he said next ensured that his speech would be trending on social media for days to come. Potapenko said that it's not Western sanctions but the actions of Russia's own bureaucrats that are damaging its economy, and that "it's not Barack Obama who's responsible for our prohibitively high interest rates." Potapenko, who owns several grocery store chains throughout Russia and Europe is known within the industry for making harsh and even scandalous public statements. His latest remarks have made him a bonafide celebrity. In an interview with Meduza's Ilya Zhegulev, Potapenko explained his outlook on Russia's economic troubles.

You made quite a splash at the Moscow Economic Forum. How have your colleagues and other members of the community responded? Have they approached you?

I'm grateful to all the people who have responded. I've received more than 2,500 messages, and nearly 200 people have called me up, but at the forum itself everything was perfectly calm. I arrived 15 minutes before my speech, sat there for 15 minutes, gave my speech, answered questions, and then some Duma deputy [the deputy chairman of the Committee on Industry, Vladimir Gutenev] decided to lecture me on how one ought to love his country. I expressed my bewilderment and a number of objections to his comments.

During your debate, you said that you also conduct work abroad. When making this point, you criticized the economic conditions in Russia and praised the situation in the West. What kind of business do you do abroad?

It's basically the same thing I do [in Russia]. I work in manufacturing: I own a small carpeting factory, a small food chain, and I'm involved in some retail. It all brings in about 25 million euros [$27.3 million] annually, and not a cent more.

And it is really more profitable for you to conduct business abroad?

In any business, there are always three criteria by which you determine the success of your investment: volume, risks, and rewards. As soon as you measure your business according to this triadic system, your evaluations of a project's profitability become very different. In the West, your profits are lower and they come slower, but there's zero risk. In Russia, you make more money and you do it faster, but it comes with risk. So from a long-term life perspective, there are more advantages to doing business abroad.

In Russia, you own several successful grocery store chains. Have you yourself experienced the problems you described in your speech at the forum?

Of course! The import-substitution movement has also affected the retail industry. Finding goods at reasonable prices is impossible. It's the same thing with the striking truck drivers. Everything is reflected in the prices consumers face.

Are you able to say that your business has been hit hard by all these problems? Are your revenues falling?

In dollar terms, we're slowing down badly. But in terms of raw profits, we've managed to grow. We've grown in sales proceeds, we've grown in profits—we've grown everywhere.

Have you ever encountered problems because of your openness? People were ready to count you among the opposition, immediately following your speech at the economic forum.

I've always said the biggest oppositionists aren't in the parliament or on the street, and they're certainly not on the Internet. The country's biggest oppositionists are behind the walls of the Kremlin. That's where they fight each other. That is where the country's most important events take place. So go ahead and include me in the opposition. Put me anywhere you like—I don't care. 

Regarding my comments, ten years ago I said publicly that you can expect a visit from men in uniform, the moment your business takes off. But I'm still alive and kicking today. The authorities have more information than we ever will. Meanwhile, we only know something like 10 percent of all the theft that actually goes on. In every government office I visit, I hang a big banner reading, "Yeah we don't give a damn, but who cares?"

Has the behavior of state officials changed recently?

There's just less money, and the budget has to be plugged with something. They already muscled in on all the property a long time ago. Now all that's left are the businesses in the service industry, but they're far less appealing to capture. You can make money with these enterprises, but it's complicated, and not possible for most thugs. A mayor's son isn't going to get involved in something like this.

Many of your colleagues are gradually withdrawing capital from Russia and investing it in businesses in other countries. 

I do business evenly here and abroad. You should understand that my life doesn't start and finish with making money. I have a very low consumer threshold. Basically, I just look to have enough to see me through to tomorrow.

Many people now reposting and sharing your speech are asking "What will happen to him now?" "How will they respond?" and so on. Are you not afraid that you're going to start encountering problems, after this speech?

The most they could do is kill me. But I'm a restless guy. Even on the other side, I'd find the people who'd sent me there.