As the separatist conflict in Eastern Ukraine turns increasingly violent, Russia is consolidating it's hold on its newly annexed territory of Crimea. The Russian government is planning to spend billions to make Crimea a showplace of development. The coup there put some obscure politicians in charge of what may soon be a region awash in money. NPR's Corey Flintoff reports.

COREY FLINTOFF, BYLINE: As Russian troops seized control of the Crimean Parliament in February, one of the first leaders to emerge was a 41-year-old businessman and politician named Sergei Aksyonov. Although Aksyonov and his Russian Unity party held only three seats in Crimea's 100-member assembly, he was named acting prime minister. Just a few weeks later, he was celebrating Russia's annexation of Crimea.


PRIME MINISTER SERGEI AKSYONOV: (Through translator) We're going home. Crimea is in Russia thanks to the support of Russia, it's people and it's president.

FLINTOFF: For Aksyonov and his colleagues, the annexation seems to be opening a world of possibilities. Russia has promised to invest billions of dollars in Crimea to renew its infrastructure and turn its rundown resorts into a tourist showplace. Mark Galeotti a professor at New York University and an expert on organized crime in the former Soviet Union says there are questions about the men who will be controlling this money.

MARK GALEOTTI: For years the Ukrainian police have been saying that the elite in Crimea, even by the standards of Ukrainian politics, was thoroughly interpenetrated by figures who were in organized crime or connected to organized crime.

FLINTOFF: He says that Asksyonov, in particular, was reported by various sources to have been a member of a cigarette-smuggling gang who went by the nickname Goblin. Tatyana Kurmanova is a journalist who investigated Asksyonov for the International Press Center in Simferopol. She says a prominent newspaper editor brought the allegations about Aksyonov's criminal past to the public.

TATYANA KURMANOVA: (Through translator) The editor offered information from police reports. Aksyonov filed a defamation suit. But the court ruled against him because he couldn't prove the reports were false.

FLINTOFF: There are also allegations of criminal activity against Vladimir Konstantinov, the speaker of the Crimean Parliament. This is Sergei Mokrushin, another correspondent for the Independent center.

SERGEI MOKRUSHIN: (Through translator) Mostly, I was investigating shady deals by the construction company Konsul, which was founded by Konstantinov.

FLINTOFF: Mokrushin says Konsul would build a few floors of an apartment building then pre-sell the unbuilt apartments to investors. But the apartments were never built and the investors never got their money back. The reporters say that key evidence against both men went missing. Even before Aksyonov and Konstantinov came to power. Now, they say it's unlikely that anyone will pursue cases against them. The economic stimulus that Russia is preparing for Crimea is expected to include a permit for casino style gambling - something that's only allowed in a few zones in Russia. Mark Galeotti says organized crime networks in Russia are trying to link up with Crimean gangs that could give them a piece of the action.

GALEOTTI: My concern is precisely that Russia will not move in to try and clean things up because, after all, the moment Russia depends on the local elites to actually run this area - and therefore, wants to keep them sweet by not trying to crack down on them.

FLINTOFF: In fact, President Putin issued a decree last month that postponed implentation of a Russian law in Crimea that prevents public officials from doing commercial business. The Crimean politicians now have until the end of the year to comply with that and other laws that require them to declare assets and report potential conflicts of interest. Corey Flintoff, NPR News.

Copyright © 2014 NPR. All rights reserved. Visit our website terms of use and permissions pages at for further information.

NPR transcripts are created on a rush deadline by a contractor for NPR, and accuracy and availability may vary. This text may not be in its final form and may be updated or revised in the future. Please be aware that the authoritative record of NPR’s programming is the audio.



Please keep your community civil. All comments must follow the Community rules and terms of use, and will be moderated prior to posting. NPR reserves the right to use the comments we receive, in whole or in part, and to use the commenter's name and location, in any medium. See also the Terms of Use, Privacy Policy and Community FAQ.