Russian ex-KGB chief warns secret elite over feud - Reuters.

MOSCOW (Reuters) - The former head of the Soviet KGB warned on Wednesday that a conflict between rival Russian security services could lead to "big trouble" and urged feuding clans to unite around President Vladimir Putin.

Details have emerged of a feud between rival groups of secret service officers who form the bedrock of Putin's team. Observers warn it could split the ruling elite at a critical time when Putin is preparing to leave office.

The battle came to light this month after agents from the Federal Security Service (FSB), controlled by Nikolai Patrushev, arrested senior officers from the anti-drugs service, controlled by Viktor Cherkesov, for corruption and abuse of office ...
Mark Ames at the Exile has a longer, more detailed take with extensive background. He sees the feud as perhaps leading to a collapse of the current dominance of the siloviki over the Russian system, just as the Yeltsin-era oligarchal system gave way to the rule of Putin and his security-service brethren.

Something big is happening in the world of Russian power. And it ain't pretty.

Two weeks ago, Viktor Cherkesov, the don of one of the main siloviki clans, published an open letter in Kommersant. Reports in the English-language press focused on how unusual it was for a silovik to take his problems public in the Putin Era--particularly a silovik of Cherkesov's stature. As head of the Federal Anti-Narcotics Agency, Cherkesov essentially runs a kind of FSB-2. And given the recent slew of high-profile arrests, along with Cherkesov's open letter, it looks as though FSB-2 is at war with FSB-1.

It's fitting that this war comes exactly 10 years after the outbreak of the Banker's War under Yeltsin, when the oligarchs divided into two mortal enemy camps in the fight over the last of Russia's unprivatized spoils. On one side of the Banker's War were Boris Berezovsky and Vladimir Gusinsky; and on the other side, the "baby billionaire" (to use the Washington Post's Fred Hiatt's own words) Vladimir Potanin and his men-in-power, the so-called "young reformers" headed by Anatoly Chubais, Boris Nemtsov, and Alexander Kokh. When the Berezovsky-Gusinsky clan felt cheated out of the privatization of Russia's telecommunications giant Svyazinvest, they took their war to the media, which they largely controlled through television stations ORT and NTV, as well as to the Russian security services, which they used to drudge up damaging kompromat. The end result of the Banker's War was the end of the oligarchy itself. Within a year of their feud, they and the system that made them collapsed.

Cherkesov warned in his letter that this very same suicidal scenario is playing out all over again today: as we near the end of the halcyon Putin Era, the once seemingly monolithic siloviki have divided into two warring camps struggling over power and assets. In one camp is the Cherkesov Clan, FSB-2; in the other, the clan headed by the FSB chief Nikolai Patrushev and his Kremlin allies led by the Presidential Administration deputy and Rosneft chief Igor Sechin. "We must not allow scandals and infighting," Cherkesov wrote in Kommersant. "There can be no winners in this war... There is too much at stake." He argued that not only would both clans lose, but the system built up in Putin's reign, the "corporatism" which Cherkesov argued has saved Russia from chaos, would go down with it.

If the "corporatist" system collapses, then it's back to chaos, just as the Banker's War ended in 1998 with the financial collapse and end of "liberal reforms ..."