Becoming a Russian Oligarch After Rebirth
Chapter 186 The Cost of Coaxing Is Too High_1

Chapter 186: Chapter 186 The Cost of Coaxing Is Too High_1

Wang Ye’s second request was obviously more difficult to fulfill than his first!

Firstly, one needs to understand "Gray Customs Clearance."

Following the breakdown of the former Soviet Union, due to a lack of its own light industry system, Russia urgently needed to import a large number of light industrial products. Many Chinese businessmen saw this opportunity and began to do business there. These businessmen were also known as "Resellers".

However, Russian customs procedures were very complicated, and tariffs chaotic. To encourage imports and simplify procedures, the Russian Customs Committee allowed "Clearance Companies" to handle import operations for cargo owners.

These companies colluded with customs officials to clear entire planes and trains of cargo with parcel express shipping. This can also be referred to as "all-inclusive plane" or "all-inclusive car".

During this process, corruption, deceiving superviors and subordinates prevailed. The Clearance Companies would only pay full tariffs for a small portion of the imported goods; a majority was cleared by bribing customs officers.

Chinese businessmen who took this route could easily and quickly transport their goods to Moscow for sale. However, they also undertook a significant risk - none of these goods had customs declarations or tax bills.

Consequently, if the tax department decided to give you a hard time, they could confiscate your goods at any time, as you were unable to provide any proof of their legality. To others, your goods would simply be regarded as "smuggled.

Opting for the "Gray Customs Clearance" has two major benefits:

One is its high efficiency and speed.

Two, it’s cheaper - usually half the cost of regular clearance fees.

For the majority of Chinese businessmen, they weren’t too concerned about cost as doing wholesale business in Russia back then was very lucrative, with wide profit margins.

Moreover, if the taxes and shipping costs became too expensive, these costs could be added to the wholesale price of the goods. This way, the price of the goods would still be very competitive and they wouldn’t have any trouble selling them.

The crux of the matter was efficiency!

Time was not something that could be wasted...

Some Chinese businessmen had tried formal customs clearance. For example, shoes from the Hu family were cleared through formal channels. However, the entire customs clearance process could take anywhere from two to three months to half a year!

Products like sports shoes didn’t really matter. They could simply send the shipment six months in advance as there was no issue of them becoming outdated.

However, this wasn’t the case for clothing and bags. Each year had different trending styles and trending colors.

If you went through the normal clearance procedure and managed to get your goods shipped over, you’d find that the styles and colors were already outdated. Who are you going to sell these goods to then...

Wang Ye’s goal was to solve this problem for the Chinese businessmen!

While maintaining the efficiency of the "Gray Customs Clearance," he also wanted to legalise everything. He wanted Chinese businessmen to be able to hold their heads up high and no longer live in fear - fear of having their goods seized by the confusing tax department.

.........

Gavriil stared directly at Wang Ye and said, "Do you know how many people you’re going to offend by doing this? This is much harder than the casino affair. You probably don’t realize how many people’s interests this will involve."

Wang Ye laughed, nonchalantly responding, "But these things have to be done sooner or later. It’s better to do them sooner rather than later! This is for the good of the country, the people, and foreign businessmen. The only ones who will suffer are corrupt customs officials and clearance companies, that’s all!"

Having been labeled as such, what could Gavriil say? He couldn’t say that he’s protecting the interests of those "corrupt officials", could he?

Gavriil sighed and shook his head. Since he had agreed to meet Wang Ye, he was indeed planning to give Wang Ye some "benefits", hoping to draw him over to the Emperor’s side.

That was part of his strategy against Khodorkovsky!

Imagine, if Khodorkovsky were to challenge the Emperor in the political arena, or decide to run in an election, just to find his most trusted "successor," Wang Ye, had been "turned" by the Emperor...

That would be an interesting sight!

The problem was that Wang Ye’s appetite was too big...

Which put Gavriil in a difficult position.

If he agreed to Wang Ye’s conditions, that would mean offending numerous people and going through a lot of trouble for this young man’s sake.

If he didn’t agree, then he had assured the Emperor that he could "secure" Wang Ye, which would allow him to deal with Khodorkovsky in a relatively mild manner. If his first one-on-one negotiation with Wang Ye failed, wouldn’t he lose face in front of the Emperor?

What Gavriil was considering now wasn’t Wang Ye’s two conditions; even though they were difficult, he had the means to accomplish them.

He was wondering whether Wang Ye was worth the massive effort it would take to win him over!

That actually depended on whether Wang Ye could truly earn Khodorkovsky’s absolute trust, penetrate into the core decision-making circle of the Yukos Group, or even take over the Group in the future!

If he couldn’t accomplish this step, then there would be little point in wooing him.

......

Wang Ye didn’t rush him, he just slowly enjoyed his food while waiting for Gavriil’s decision.

After several minutes, Gavriil appeared to have made up his mind, and said laughingly, "In theory, this is feasible. But as you know, it would be troublesome and complex to execute and hence may take some time."

Wang Ye responded with a smile, "I understand. I appreciate your help, uncle. But the casino should be simpler to set up, right? That shouldn’t need too much time, should it?"

Gavriil responded quickly, "That’s easy, it should take at most a week. Just wait for my news."

His plan was to verbally agree to Wang Ye’s customs clearance request but not act upon it right away. He intended to observe for a while and see if Wang Ye was really worth the massive effort it would take to win him over.

So, in order to put Wang Ye’s mind at ease, the casino matter must be handled as soon as possible.

Wang Ye had made two requests. If neither were met, how would they continue to maintain their relationship in the future?

Wang Ye might even start doubting his capabilities.

"That’s great. I can quickly start planning for the tourism and hotel renovation now. I will wait for your good news, uncle."

Wang Ye raised his red wine glass and clinked it with Gavriil’s, both smiling broadly.

After dinner, as he saw Gavriil off, Wang Ye casually mentioned, "I am planning to bring in one or two new shareholders for my Xiao Ying Hotel. I was wondering if you could recommend any suitable candidates."

Gavriil paused for a moment, then laughed and replied, "Ah, I can’t help with that. Everyone I know are commercial tycoons like A Bu and your uncle Khodorkovsky. I doubt they would be interested in your hotel."

His response took Wang Ye by surprise.