Becoming a Russian Oligarch After Rebirth
Chapter 701: He Made a Fortune_1

Chapter 701: Chapter 701: He Made a Fortune_1

Regarding the additional tax collection, Wang Ye did not sneak this move under the radar. He had notified the family through Rossiyanan well beforehand.

As expected, when Wang Ye mentioned this, Constantin merely nodded calmly.

Turning around, he said, "Everyone out. Chairman Mikhail and I need to talk privately."

Everyone, including Rossiyanan and her parents, left the room, leaving only Wang Ye and Constantin in the large living room.

Constantin did not immediately start the discussion. Instead, he reached for a small cigar box, opened it, took out two thick cigars and offered one to Wang Ye, lighting one for himself.

He knew Wang Ye well enough to be aware that he smoked, occasionally cigars.

Wang Ye cut the tip off of his cigar without hesitation, and they both lit up and started smoking.

After a few puffs, Constantin finally exhaled and began, "In principle, I agree with this tax plan. After all, the increased taxes are used for improving the birth rate, which greatly benefits our country."

Wang Ye knew there was more to come, so he did not rush to respond.

After a pause, Constantin continued, "But I can’t agree to this as easily as that.

If I acquiesce without a fuss now, what would stop the country from raising taxes again when it needs money?

Once that door is opened, increasing taxes is easy, but lowering them again - that’s a whole different story.

Misha, as a businessman, you know how difficult it is to manage a large conglomerate.

Maybe your company has made quite a bit of money these last few years, but what about a few years from now? Will you still be earning as much as you do now?

We in the communication industry are in stark contrast to you in the energy industry.

The energy sector, as everyone knows, starts with a hefty investment, but afterwards, it reaps profits with the ease of minting money.

The earnings, more or less, depend solely on national oil price trends.

But the communication sector isn’t so fortunate. It seems lucrative on the surface, but it requires a massive investment!

We are talking about consistent, ongoing capital infusion here.

In recent years, communication, networking, everything is evolving rapidly, with speedy tech iterations.

Because of that, we who are in this business have to constantly upgrade our hardware infrastructure. Every upgrade means a significant investment.

And these investments are needed every few years. Especially when there’s a major upgrade, almost all foundational hardware has to be replaced.

All the earnings are just going towards this..."

Constantin had a lot to say which Wang Ye was seriously listening to.

Admittedly, what Constantin said was true - compared to the energy industry, making money in the communication sector is challenging.

But Wang Ye also knew that in reality, Constantin was overstating things. If the communication industry wasn’t extremely profitable, how could every country have giant telecommunications firms?

At the end of the day, Constantin just wants to negotiate some terms.

He isn’t willing to give up his money for nothing. Like he said before, this precedent mustn’t be set lightly.

Otherwise, future problems will increase exponentially.

This time, Wang Ye’s team proposed a childbirth encouragement scheme which requires funding, targeting a few big corporations for a tax hike.

What if, tomorrow, some other department or congressman proposes another good, patriotic idea but without funds; could they also tax these corporations again?

If taxes start increasing indiscriminately, it won’t matter how much money they’re making, the corporations will buckle under the pressure...

Therefore, Constantin must put up a front.

He must give, but not wholeheartedly!

...

Finally, Constantin locked eyes with Wang Ye and said emphatically, "The only reason I agreed to this tariff increase is out of respect for you. If Grezlov was the one making the proposal, I wouldn’t consider it at all!

However, since I offered my support to your work, I expect a reciprocation in return."

Unmoved by his fervor, Wang Ye asked, "I appreciate your support, Mr. Constantin. What kind of reciprocation are you seeking? Feel free to tell me."

Suddenly, a smile broke across Constantin’s face, "As far as I know, the Russian Gas Industry Group plans on stock expansion financing this year. How about we jointly invest and become stakeholders in the Russian Gas Industry Group?"

Wang Ye was taken aback. He wasn’t aware of this!

However, considering the close ties between the Constantin family and the Kremlin, it’s not surprising they were privy to this development beforehand.

But there was something amiss. The Russian Gas Industry Group was a superpower in the natural gas market with abundant funds.

What could possibly motivate them to expand stock financing? They hardly lack funds.

Perhaps noticing Wang Ye’s surprise, Constantin explained, "This is still in the early stages. There are grumbles about the large share of state-owned stock in the Russian Gas Industry Group. Therefore, some have made the case for diluting state-owned holdings so that we can demonstrate our economic liberalization, better aligning ourselves with international standards."

The tone of his voice was tinged with mockery, implying his disdain for this contention.

Regardless, he too, supports the cause.

Otherwise, how could he possibly get a chance of being a stakeholder in the Russian Gas Industry Group!

Everyone knows that with energy giants like these, if you manage to buy into the company, you don’t have to worry about the rate of return!

It’s impossible not to make money!

Let’s not even mention the possibility of a loss, that’s unheard of.

Constantin bringing Wang Ye into the picture pointed towards a rigorous struggle over stock rights.

Relying solely on the Constantin family and their connections to the Kremlin wouldn’t be sufficient.

But if he could get Wang Ye, the rising star of the political world, on his side, his chances of winning would increase significantly.

What he was after was not Wang Ye’s Vice Speaker position, but his role as the Chairman of the Economic Committee!

If the Russian Gas Industry Group plans on stock expansion financing or a stock restructuring, they need approval from the Duma, especially the Economic Committee which will play a major part.

It can be said that if the new stakeholder doesn’t align with Wang Ye’s interests, he has the means to veto the Group’s stock expansion financing plans.

...

After seeing through Constantin’s scheming, Wang Ye couldn’t help but admire the cunning fox for his shrewd ploy.

He curried favor with Wang Ye by showing flexibility around the taxation proposal, resulting in a favor being owed.

Then he immediately roped Wang Ye into participating in the Russian Gas Industry Group’s stock expansion project, effectively securing success by using Wang Ye’s influence.

After becoming a stakeholder of the Russian Gas Industry Group, every year’s dividend would amount to quite a large sum.

It’s estimated that not only would this cover the increase in tax, but also leave a surplus....

This two-pronged strategy showed Wang Ye how he had created a win-win situation for himself.

Although, what Constantin proposed wasn’t bad for Wang Ye either. He was only too pleased with the outcome.

Honestly speaking, if it weren’t for Constantin initiating it, Wang Ye wouldn’t have partaken in the Russian Gas Industry Group’s stock expansion scheme.

He was wary of the potential complications!