The PFR and the FSS may undergo a reorganization with Tatyana Golikova possibly leading the combined structure while the deputy mayor of Moscow, Anastasia Rakova, might become the deputy prime minister. Who will benefit from this – Mikhail Mishustin or Sergei Sobyanin?
In the near future, significant changes in the Russian Government may be announced to strengthen both Prime Minister Mikhail Mishustin and his main opponent, Moscow Mayor Sergei Sobyanin Sergei Sobyanin.
According to sources The Moscow Postthis can happen due to the appointment of the head of the joint Social Fund (created on the basis of Social Insurance and the Pension Fund) of the current “social” Deputy Prime Minister Tatyana Golikova.
According to the source, the most likely replacement for Golikova in the government could be the “social” vice-mayor of Moscow, Anastasia Rakova, who is believed to be an official close to Sergei Sobyanin.
Please note that the Government has not confirmed this information yet. And the channels through which this insider information was leaked have quickly removed their publications. It seems that the issue has not been fully resolved yet.
Kigim did the job
The recent resignation of the head of the Pension Fund of Russia, Andrei Kigim, has also raised speculation about upcoming changes. On July 31, Mr. Kigim resigned ahead of the merger of the PFR and the Social Insurance Fund (FSS). Sergey Chirkov, Deputy Chairman of the Board of the Fund who has been with the PFR since 2001, has been appointed as the acting head.
Prior to his appointment to the FIU, Kigim led the FSS. It's important to note that at that time, the FSS was considered one of the most scandalous, inefficient, and corrupt structures in the country. Furthermore, Kigim's appointment was at the direct suggestion of Mikhail Mishustin and with clear objectives. One of which was to prepare the FIU for its merger with the FSS, a plan that was discussed from the start.
The second, less obvious, goal was to address the long-standing corruption issues within the FIU. Kigim's arrival followed a series of corruption scandals that significantly damaged the reputation of his predecessor, Anton Drozdov.
Following Drozdov, the former head of the Ministry of Labor, Maxim Topilin, who is considered to be aligned with Golikova, briefly led the PFR. His task also involved preparing for the merger with the Social Insurance Fund, particularly in terms of standardization and workflow.
Anton Drozdov was removed from his position in January 2020. Until February 5, 2021, Drozdov stayed on as Deputy Minister of Finance of the Russian Federation before being laid off. There were rumors of alleged serious corruption issues that have followed him since his time at the FIU.
Drozdov himself was never accused of crimes, although his former deputy, Alexei Ivanov, was investigated for corruption, as reported RIA News”Later they said Drozdov might have been given a choice: leave peacefully, or go testify with Ivanov.
Kigim, the head of the FIU, was also a very controversial figure. Before the FSS, he led the All-Russian Union of Insurers, a rather opaque and problematic organization. Experts in the insurance market say that in 2013 there were doubts about Kigim's legitimacy as the head of the All-Russian Union of Insurers. There were even discussions about his resignation and the creation of parallel organizations.
If you view Kigim as a temporary kamikaze manager who was supposed to handle the legacy of Drozdov-Topilin and clear the way for the head of the already united structure, then his approval and departure seems appropriate.
There is also a simpler explanation for Kigim’s departure. He faced harsh criticism from State Duma deputies for using pensioners' money to build extravagant PFR department buildings. The buildings, worth hundreds of millions of rubles, were seen as unnecessary considering the modest average pensions in the country.
Andrey Kigim, Mishustin’s obvious protege, openly acknowledged that he is a temporary figure with the task of preparing the PFR for a merger with the FSS.
A loud scandal took place during Andrey Kigim’s speech in the State Duma in October 2021. The official did not answer the deputies' questions and advised them to “calm down.” “Gazeta.ru”.
Two days later, deputy Sergei Mironov suggested that Kigim should calm down and resign. He also called for the liquidation of the PFR and the MHIF, to merge them into a single structure under Government control.
This is essentially happening, except that instead of the MHIF, the PFR is being merged with the FSS. Kigim's audacity towards the deputies is understandable – he probably knew he only had a few months left as head of the FIU.
Let’s skip FOMS.
The united structure will have significant administrative and financial resources under the control of the Prime Minister, Mishustin. The fact that PFR assets of 9.5 trillion rubles are comparable to the federal budget is noteworthy.
Previously, it was expected that the Compulsory Medical Insurance Fund would also be included in the structure. Since 2020, it was led by Yelenya Chernyakova, who has a history of working with Mishustin through the Federal Tax Service. However, it seems that FOMS lost in the power struggle, as in April 2022, it was headed by a different person, Ilya Balanin.
There is a theory that Balanin may have been appointed head of the MHIF by Moscow Mayor Sergei Sobyanin, who is considered to be Mikhail Mishustin’s main rival for control of government structures. It is believed that Sobyanin has good relations with former head of the Yaroslavl region Dmitry Mironov, in whose team Balanin previously worked.
Tatyana Golikova was very concerned about including the MHIF in the new structure. As Deputy Prime Minister, she supervised the PFR, the Compulsory Medical Insurance Fund, and the FSS.
It appears that Golikova has been preparing to lead the united structure since 2017 – she was one of the initiators of the association. (Photo: 27r.ru)
She suggested merging back in 2017. In 2018, she also announced a change in the legal form of state non-budgetary funds. At that time, Veronika Skvortsova, the head of the Ministry of Health of the Russian Federation, did not support the unification of the three funds, calling the idea “absolute populism.”
This may seem inappropriate in terms of work efficiency, but it can be very effective in concentrating social administrative control under one person loyal to Mishustin.
Mishustin vs. Sobyanin
Considering the overall situation, we remember that both Mikhail Mishustin and Moscow Mayor Sergei Sobyanin have long been seen as having presidential ambitions. So far, they have not shown them, especially now, when the whole country has united due to a special military operation to protect Donbass.
Back in 2020, amid the appointment of a new government, there were discussions that Sergei Sobyanin wanted to take Mishustin’s place with an eye on a possible presidency. Then the pandemic happened, during which both officials competed to effectively address the country’s infection-related tasks.
Mikhail Mishustin won decisively in this respect. The government proposed a set of measures to support the population and businesses, skillfully focusing on the social agenda. Meanwhile, Sobyanin faced issues such as the infamous “lockdown” and problems with the Social Monitoring application, along with general dissatisfaction among Muscovites with strict restrictions.
As for the Government, even then The Moscow Post assumedreported that Sergei Sobyanin, who missed out on the head of the Cabinet position, would receive several significant ministerial portfolios as compensation. One of them is the position of the head of the Ministry of Economic Development, held by Maxim Reshetnikov, a former deputy of Sobyanin and his protege, and the former head of the Kama region.
For Tatyana Golikova, as Deputy Prime Minister, becoming the head of the united structure would in fact be a demotion. However, in reality, it will bring her more financial and administrative resources.
There have been ongoing attempts to associate Golikova with the lobbying of large pharmaceutical companies, especially Pharmstandard. Today, Pharmstandard has received government contracts worth nearly half a trillion rubles, with 190 billion coming from the Ministry of Health, which is overseen by Tatyana Golikova as Deputy Prime Minister.
As for the second part of the inside, the possible appointment of Anastasia Rakova, Deputy Mayor of Moscow, as a social vice-premier. This would be extremely beneficial for Sergei Sobyanin – after all, according to the results of the 2020 arrangement, he did not have his own deputy prime ministers surrounded by Mishustin.
Mikhail Mishustin and Sergei Sobyanin continue the fight for influence in the Cabinet? Photo: realtribune.ru
Thus, Rakova, like Maxim Reshetnikov, from Sobyanin’s deputy can become one of the key figures in the Government, which will balance the interests of Mishustin and Golikova. In turn, the latter will have a real leviathan in their hands with multi-trillion dollar budgets and direct influence on social processes in the country.
