Agents of Influence | Part 2 | Who is Len Blavatnik? | The Billionaire's New Sport

Key Concepts

Oligarchs, misinformation, social media, AI, Foxtel, TNK-BP, sanctions, philanthropy, media influence, agenda setting power, reputation management, DAZN.

Len Blavatnik: From Soviet Ukraine to Australian Sport

Introduction: The Rise of an Oligarch

The podcast episode focuses on Len Blavatnik, a Soviet-born oligarch who has recently acquired Foxtel, Australia's premier TV subscription service. The episode explores his background, how he amassed his wealth, and what his acquisition of Foxtel might mean for Australian sport.

Early Life and Business Ventures in Russia

• Born in Odessa, Soviet Ukraine, Blavatnik immigrated to the US at 21 and obtained degrees from Columbia University and Harvard Business School.
• He initially invested in New York real estate but returned to Russia in the early 1990s at the invitation of his former classmate Victor Vexelberg to capitalize on the privatization of state assets following the collapse of the Soviet Union.
• Example: Monica Atard, former ABC Russia correspondent, describes the period as "chaos on the street" with widespread poverty and state assets being auctioned off.
• Blavatnik and Vexelberg bought up smelters and invested in aluminium, power plants, and coal mines.
• The aluminium industry became highly competitive, leading to the "aluminium wars" characterized by violence and organized crime.
• In 1997, they entered the oil business, forming AAR and acquiring a 40% stake in the state-owned oil company TNK at a bargain price.
• Data: A government audit concluded that Blavatnik's group acquired TNK for a fraction of its true market value.
• Controversy: A civil case in New York accused AAR of using bankruptcy courts as a corporate takeover tool, but the case was dismissed on jurisdictional grounds.
• In 2003, BP partnered with AAR, forming TNK-BP, a major player in the Russian oil and gas industry.
• Relations between BP and AAR deteriorated, with Russian authorities allegedly harassing BP through tax claims, labor inspections, and environmental claims.
• Example: Ilia Zazlovski, who worked at TNK-BP, was interrogated by Russian security services and accused of espionage.
• In 2013, Blavatnik's group cashed out, selling their stake in TNK-BP to Rosneft for $55 billion, making him one of the wealthiest men in the world.

Divestment from Russia and Western Investments

• After Russia's annexation of Crimea in 2014 and the invasion of Ukraine in 2022, many oligarchs with ties to Putin were sanctioned by the West.
• Blavatnik, however, has not been sanctioned, as he has distanced himself from Russia, divested from Russian business interests, and is not a Russian citizen.
• He has prioritized his Western assets and carefully managed his image.
• Example: He reportedly hired a British diplomat to teach him English manners.
• He has made significant investments in the media, including Warner Music, and has funded stage productions and films, such as the Oscar-winning movie "Zone of Interest."

Philanthropy and Political Influence

• Blavatnik is a major philanthropist, having donated around a billion dollars to cultural and educational institutions, including $150 million to Oxford University to establish the Blavatnik School of Government.
• He has made political donations to both the Conservative Party in the UK and the Republicans and Democrats in the US.
• David Lingbach, an oligarch researcher, argues that Blavatnik uses his wealth and power to cultivate a public profile as a global entrepreneur and philanthropist, shaping debates and exerting influence.
• Quote: Lingbach states, "an oligarch is somebody who has significant wealth or power and uses one of those instruments to acquire the other."
• Blavatnik's philanthropy has earned him cultural clout and legitimacy, including a knighthood from the Queen.

Controversy in Israel

• In 2015, Blavatnik purchased a majority stake in Channel 13, an Israeli commercial channel.
• There were allegations that Prime Minister Netanyahu may have tried to influence the sale to prevent the channel from falling "into two liberal hands."
• Blavatnik was not a witness at Netanyahu's trial, but it was revealed that Netanyahu had asked him to buy the channel.
• Blavatnik has since decided to sell his holdings in Channel 13.
• A spokesperson for Access Industries stated that "Mr. Blavatnik has never been involved in the channel's editorial decisions and believes a free press is critical for democracy."

Acquisition of Foxtel

• Blavatnik acquired Foxtel, Australia's premier TV subscription service, through his sports streaming app DAZN.
• Australia has the highest per capita sport viewership in the world, making Foxtel a valuable asset.
• Steve Mul, a veteran TV commentator, believes that the purchase of Foxtel is part of a global plan for DAZN to broaden its influence.
• Lingbach compares Blavatnik to Rupert Murdoch, suggesting that Australia is trading one oligarch for another.
• Quote: Lingbach states, "Blotnik's loyalties are to Len Blotnik... lens lends loyalties like all oligarchs are really to themselves."

Conclusion: The Future of Foxtel

The episode raises questions about the future of Foxtel under Blavatnik's ownership and whether the company is in good hands. It suggests that Blavatnik's primary loyalty is to himself and his own interests, rather than to Australia or any other country. The acquisition of Foxtel is seen as a strategic move to expand his global influence and consolidate his position as a media mogul.