The Hunted

"Turns out we did him a big favor. Konevitch dove full-time into construction work, expanded his workforce, and spread his projects all over Moscow. People are willing to pay under the table for quality, and Konevitch established a reputation for reliability and value. Word spread, and customers lined up at his door. When perestroika and free-market reforms were put in place, he cleaned up."

"From construction work?"

"That was only the start. Do you know what arbitrage is?"

"No, tell me."

"Well… it's a tool capitalists employ. When there are price differences for similar goods, an arbitrager can buy low, sell it all off at a higher price, and pocket the difference. Like gambling, he more or less bets on the margins in between. Konevitch's work gave him intimate familiarity with the market for construction materials, so this was the sector he first concentrated in."

"And this is… successful?"

"Like you wouldn't believe. A price vacuum was created when Gorbachev encouraged free-market economics. The perfect condition for an arbitrager, and Konevitch swooped in. There's a lot of construction and no pricing mechanism for anything."

"Okay."

That okay aside, Yutskoi suspected this was going over his boss's head. "Say, for example, a factory manager in Moscow prices a ton of steel nails at a thousand rubles. A different factory manager in Irkutsk might charge ten thousand rubles. They were all pulling numbers out of thin air. Nobody had a clue what a nail was worth."

"And our friend would buy the cheaper nails?" Golitsin suggested, maybe getting it after all.

"Yes, like that. By the truckload. He would pay one thousand rubles for a ton in Moscow, find a buyer in Irkutsk willing to pay five thousand, then pocket the difference."

Golitsin scrunched his face with disgust. "So this is about nails?" He snorted.

"Nails, precut timber, steel beams, wall board, concrete, roofing tiles, heavy construction equipment… he gets a piece of everything. A big piece. His business swelled from piddling to gigantic in nothing flat."

Sergei Golitsin had spent thirty years in the KGB, but not one of those outside the Soviet empire and the impoverishing embrace of communism. Domestic security was his bread and butter, an entire career spent crushing and torturing his fellow citizens. He had barely a clue what arbitrage was, didn't really care to know, but he nodded anyway and concluded, "So the arbitrager is a cheat."

"That's a way of looking at it."

"He produces nothing."

"You're right, absolutely nothing."

"He sucks the cream from other people's sweat and labor. A big fat leech."

"Essentially, he exploits an opening in a free-market system. It's a common practice in the West. Highly regarded, even. Nobody on Wall Street ever produced a thing. Most of the richest people in America couldn't build a wheel, much less run a factory if their lives depended on it."

Golitsin still wasn't sure how it worked, but he was damned sure he didn't like it. He asked, "And how much has he… this Konevitch character… how much has he given Yeltsin?"

"Who knows? A lot. In American currency, maybe ten million, maybe twenty million dollars."

"He had that much?"

"And then some. Perhaps fifty million dollars altogether. But this is merely a rough estimate on our part. Could be more."

Golitsin stared at Yutskoi in disbelief. "You're saying at twenty-two, he's the richest man in the Soviet Union."

"No, probably not. A lot of people are making a ton of money right now." Yutskoi looked down and toyed with his fingers a moment. "It would be fair to say, though, he's in the top ten."

The two men stared down at their shoes and shared the same depressing thought neither felt the slightest desire to verbalize. If communism went up in flames, their beloved KGB would be the first thing tossed onto the bonfire. In a vast nation with more than forty languages and dialects, and nearly as many different ethnic groups, there was only one unifying factor, one common thread-nearly every citizen in the Soviet Union had been scorched by their bureau in one way or another. Not directly, perhaps. But somebody dear, or at least close: grandfathers purged by Stalin; fathers who had disappeared and rotted in the camps under Brezhnev; aunts and uncles brought in for a little rough questioning under Andropov. Something. Nearly every family tree had at least one branch crippled or lopped off by the boys from the Lubyanka. The list of grudges was endless and bitter.

Yutskoi was tempted to smile at his boss and say: I hope it all does fall apart. Five years being your bootlicker, I've hated every minute of it. You'll be totally screwed, you nasty old relic.

Golitsin knew exactly what the younger man was thinking, and was ready to reply: You're a replaceable, third-rate lackey today, and you'll be a starving lackey tomorrow. Only in this system could a suck-up loser like you survive. The only thing you're good at is plucking fingernails from helpless victims. And you're not even that good at that.