Cellar

Cellar (pronounced sel-er)

(1) A room or set of rooms, for the storage of food, fuel etc, wholly or partly underground and usually beneath a building.

(2) As “wine cellar”, an underground room in wine is stored (now often built above ground but still referred to as “wine cellar”); as “cellar”, a stock of bottled wines.

(3) As “cellar dweller(s)”, in the slang of competitive sport, a reference to teams in the lowliest reaches of the points ladder.

(4) As a verb, to store something (usually wine) in a cellar.

(5) As “salt cellar”, (1) a historical term for a small dish used for holding salt to be dispensed by a spoon & (2) an alternative (if historically misleading) term for what tends in modern use (initially especially in North America but later more generally) to be called a “salt shaker”.

1175–1225: From the Middle English celer and the Old French celier (“salt box” which survives in Modern French as cellier) from the Anglo-French & Latin cellārium (pantry; storeroom (literally group of cells”)), the construct being cell(a) + -ārium, the later re-spelling adopted to reflect the Latin form.  The fifteenth century English saler is from the Old French salier (salière in Modern French), from the Latin salarius (relating to salt) from the Latin sal (salt).  The Latin salarium was a noun use of the adjective meaning "pertaining to salt," again derived from the Latin sal (salt) from the primitive Indo-European sal- (salt).  The sense "room under a house or other building, mostly underground and used for storage" gradually emerged in late Middle and early Modern English, cellar-door attested by 1640s.  The somewhat clumsy noun cellarer (the person, usually in a monastery, responsible for providing food and drink) appears to have gone extinct by the late eighteenth century.

Of cellars, jugs, pots, mills & all that

Lindsay Lohan with milk jug, preparing a Pilk.  A Pilk is a mix of Pepsi Cola and milk, one of a class of beverages created by the Pepsi Corporation called Dirty Sodas which includes the Naughty & Ice, the Chocolate Extreme, the Cherry on Top, the Snow Fl(oat) and the Nutty Cracker.  All are intended to be served with cookies (biscuits).

In English, to describe the containers in which small quantities of stuff (as opposed to bulk-storage such as a bin) was stored, a variety of terms evolved.  Ground pepper is stored in a pepper pot which is shaken; whole or cracked peppercorns being stored in a pepper mill (often now called a pepper grinder) which is ground.  Ground salt is stored in a salt cellar and should be dispensed with a spoon whereas if shaken from a container it's best called a salt shaker; salt crystals are stored in a salt mill (often now called a salt grinder) which is ground.  Sometimes, the pepper pot and salt cellar are kept in a receptacle called a condiment caddy.  Ink, if used by directly dipping in a nib or quill end, is kept in an inkwell; if bought from a shop, it is sold in an ink pot, the latter more recent and, with the decline of writing with ink, now more prevalent.  Gravy is served in a gravy boat.  A ramekin is a small bowl used for preparing and serving individual portions of a variety of dishes, including crème brûlée, soup, molten cakes, moin moin, cheese or egg dishes, poi, macaroni and cheese, lasagna, potted shrimps, ice cream, soufflé, baked cocottes, crumbles, chakra póngal, or scallops, or used to serve side garnishes and condiments alongside an entrée.  Biscuits are kept in a biscuit barrel.  Tea is kept in a tea caddy, milk is served from a milk jug and sugar is taken from a sugar bowl with tongs if in lumps and if in crystals, is taken with a spoon or sprinkled from a caster or, more rarely, a sifter. Liquid condiments such as olive oil and balsamic vinegar are served from a cruet.  Soups and stews are served in a tureen and dispensed with a ladle.

The word ladle is the subject of one of the more curious definitional disputes in English.  A ladle is thought by most reasonable folk to be a specialized spoon but there are pedants of gastronomy who insist that while ladles have a spoon-shaped bowl, the angle of the handle (which can be so acute as to be perpendicular to the bowl) means they are so different to every other spoon that they can be used only for ladling, not spooning.  The etymological evidence offered is that the Middle English ladel is from the Old English hlædel, derived from the Proto-Germanic hlaþaną (to load), derived from several primitive Indo-European sources which meant “to put”, “lay out”, to spread” and, the Old English hlædel (a glossing of the Latin antlia (pump for drawing water)) is from hladan (to load; to draw up water).  It’s less a technical point than a social class signifier known probably only to etymologist and the more snobby maîtres d'hôtel.

Saliera (salt cellar) circa 1542 by Benvenuto Cellini, Kunsthistorisches Museum, Wien.

In addition to the works he completed, Italian sculptor and goldsmith Benvenuto Cellini (1500-1571) is remembered for his vividly written autobiography, a few of the more extravagant tales suggesting some unreliability of memory but the four murders to which he confesses are undisputed and well-documented.  Convinced of his own greatness, which he did not seek to conceal from his readers, his virtues and vices he seems to suggest were the essential qualities of his genius and for an abundance of one he should be forgiven the excesses of the other.  Friends in high places seemed to agree.  Thanks repeatedly to the interventions of well-placed men of influence, including many cardinals and more than one pope, he was able either to escape punishment or secure pardons and early release from the imprisonment imposed for many of his crimes which, as well as the murders, included sodomy of both young men and women, one of whom in Paris filed a complaint accusing him of using her "after the Italian fashion".

A mannerist masterpiece, the memorable Saliera (salt cellar) is some 10" (250 mm) high and 13" (330 mm) wide, sculpted by hand from rolled gold, resting on a base of ebony into which are installed ivory bearings to permit it to be rolled between guests, around the table.  It represents the gods of the earth and sea, their legs intertwined and thought to suggest “those lengthier branches of the sea which run up into the continents”.  A small boat in which to store the salt floats next to the sea god while a temple for peppercorns sits next to the earth goddess, the figures on the base noting the winds and times of day.  When Cellini presented the piece he made no mention of the names of the figures and only later would they be identified as Neptune and Tellus.

Cognac

Cognac (pronounced kohn-yak, or kaw-nyak (French))

(1) The brandy distilled in and shipped from the legally delimited area surrounding the town of Cognac, in western-central France (often with initial capital letters).

(2) Any French brandy (now technically incorrect since passage of various laws and WTO rules).

(3) Any expensive brandy (also incorrect).

(4) A town in south-west France famed for the brandy distilled from grapes grown in the region.

(5) A descriptor used for a range of brown shades from earthy to reddish-brown.

1585-1595: Borrowed from French Coniacke, (wine produced in Cognac region of western France), cognac’s origin was as a distilling of an otherwise unsaleable white wine.  The term Cognac brandy was in use as early as the 1680s and the sense of it being “a superior brandy” dates from 1755.  The city's name is from Medieval Latin Comniacum, from the personal name Cominius + the Gallo-Roman suffix -acum (from -aceus (indicating a resemblance). Cominius is an old Italic family name.

James Suckling 100 points crystal cognac glass from Lalique.

Although the traditional balloon glass was long associated with brandy and cognac, the distillers now advise the best choice is actually a “tulip” glass because it permits the aromas better to waft to the nose.  That's the most important part in enjoying Cognac; it's not so much drunk as breathed in, consumed mostly by a mere moistening of the lips while slowly but deeply inhaling; a nip of cognac can last a long time.  Enjoyed thus, it really should be taken neat.  

Named after the town of Cognac, France and known within the trade also as eau de vie, cognac is a brandy produced in any of the designated growing regions approved by the Bureau National Interprofessionnel du Cognac (BNIC).  In a pleasing irony, it’s distilled from an extremely dry, thin and acidic white wine thought undrinkable and unsuitable even for cooking yet which is ideal for distilling.  Grand Marnier, the cognac-based liqueur, from the French grand (great) + Marnier-Lapostolle (name of the manufacturer) was first sold in 1901.

Although the BNIC is the body which writes the rules and controls production, the industry is regulated under the French Appellation d'origine contrôlée which codifies all regulations including the naming requirements.  One linguistic curiosities of the quintessentially French business of cognac business is the official grades (XO, VSOP etc) are in English because they were standardised in the eighteenth century when the trade was dominated by the British, even before Pax Britannia’s control of the sea lanes.  The BNIC’s categories are:

VS (Very Special), denoted usually by the three stars (☆☆☆) on the label, VS designates a blend in which the youngest brandy has been cask-aged for a minimum of two years.

VSOP (Very Superior Old Pale), still often (though now less frequently) called Reserve, designates a blend in which the youngest has been cask-aged for a minimum of two years.  VSOP is sometimes incorrectly cited as Very Special Old Port or Very Special Over Proof.

Napoléon designates a blend in which the youngest brandy has been cask-aged for a minimum of six years.  Although long used as a marketing term (often as a synonym for XO), Napoléon was never part of the official naming system of Cognacs, appearing only in recent years, when, as a transitional arrangement due to stocks not being sufficient to permit implementation of a change in the rule governing use of the XO label, it was used specifically to denote those blends which, while aged the requisite six years, did not in other ways conform with the revised XO specifications.  Slated originally for introduction in 2016, the revised rules were instead gazetted in 2018.

XO (Extra Old), designates a blend in which the youngest brandy has been cask-aged for a minimum of ten years.

XXO (Extra Extra Old), designates a blend in which the youngest brandy has been cask-aged for a minimum of fourteen years.

Hors d'âge (Beyond Age), designates a blend, at least functionally equivalent to XO, but is applied by distillers to a cognac with some special characteristics which distinguish it in some way.

The naming conventions aren’t as old as the spirit.  When first produced from un-aged distilled grape wine from the Charente in the early 1600s, there was no system of ageing designations and it was sold simply as brandy, or, from the 1680s, Cognac brandy.  By century’s end however, the wine houses began storing the brandy in barrels of oak and to distinguish the aged product, this was called “old”, the un-aged, “young”.  The now familiar, hierarchical naming regime for the oak-aged spirit didn't begin until a batch called VSOP (Very Special Old Pale) was bottled for the Prince of Wales (George Augustus Frederick, 1762–1830; King George IV of Great Britain 1820-1830).

Lindsay Lohan color-co-ordinated in cognac (hair, eyes, outfit & nails), Christian Siriano Spring 2023 Collection Show, New York Fashion Week, February 2023.

The French wine industry was little-regulated until the phylloxera (a type of aphid) crisis of the mid-nineteenth century induced the government in 1888 to create the Viticulture Committee with a remit which grew gradually from disease control to encompass other regulatory aspects of the industry.  One concern was the widespread counterfeiting of cognac and in 1909 a decree was issued which defined the “Cognac” appellation area as the eight Cognac vintages named in a map based upon the work of geologist and paleontologist Henri Coquand (1813-1881).  It’s that map which remains the basis of the rule that cognac can only be produced within a delimited geographical area, defined by the 1909 decree which meant the “Cognac”, “Eau-de-vie de Cognac”, and “Eau-de-vie des Charentes” appellations are restricted exclusively to wine spirits grown and distilled within the defined regions of Charente-Maritime and Charente, as well as several villages in the Dordogne and Deux-Sèvres departments.

Later, the regulatory body was the National Bureau of Distribution of Cognac Wines and Eaux (NBDCWE) which in 1936 defined the conditions for the production of eaux-de-vie giving rise to the “cognac” appellation and two years later re-defined the appellation area, commune by commune, vintage by vintage.  The 1936 ruling outlined the requirements for distilled wine or brandy to be considered Cognac, mandating (1) the product must originate in the Cognac Appellation d’origine contrôlée (AOC) mapped that year, (2) that the grapes used to make cognac must come from one of the six designated growing areas (crus) located in the Cognac region (the six crus including  Borderies, Fins Bois, Bons Bois and Bois Ordinaires, Bois à terroirs, Grande Champagne and Petite Champagne), (3) that the grapes must come from one of the six approved appellations and (4), the cognac must be made from grapes blended from 90% eau de vie from Ugni Blanc, Folle Blanche and Colombard grapes with up to 10% Folignan, Jurancon blanc, Blanc Rame, Montils or Semillon grapes.

The NBDCWE was in 1946 replaced by the NIBC and in 1983 it formalized the long-established designations used to classify cognacs by age.  The designations are determined by the youngest eau-de-vie blended in the Cognac, thus nothing may be represented as cognac unless it has been aged at least two years (the VS (Very Special standard)).  The distillers may sell younger eau-de-vie as brandy (for example Rémy Martin’s Rémy V) but not labelled as cognac.  The point of the designations being based on the youngest part of the blend is significant in that a VS cognac may contain a proportion of much older eau-de-vie.  It’s for that reason some cognacs are sold without an official designation attached, if it’s thought by the house the label might confuse or inaccurately portray nature of the blend.  Rémy Martin’s 1738 Royal Accord by contains eau-de-vie aged between four & twenty years and thus, technically, is a VSOP but the house chose to forego a designation because it would tend to undersell the value of blend which included eaux-de-vie aged up to twenty years.

Most expensive: Henri IV Dudognon Heritage Cognac Grande Champagne.  Listed at almost US$2 million, it’s bottled in crystal which is dipped in 24-karat gold and Sterling platinum with 6,500 certified cut diamonds as decoration.  Said now to be aimed at the Middle-East market since the Standing Committee of the Chinese Communist Party's (CCP) Politburo cracked down on such extravagances, it’s assumed not many mix this with Coca-Cola.

Highly regarded: Remy Martin’s Louis XIII Grande Champagne Très Vieille Age Inconnu (pre-1950).  There was an official price list on which this appeared but, because of limited supply, it’s really only indicative and most sell at auction, the highest known paid for a decanter thought to be the US$44,630 achieved in a private Hong Kong sale in 2013.

Most fancy box: Camus Cuvee 5.150.  Camus use a sequential numbering system for their more interesting releases, the 5.150 the fifth release in their master collection which marked the company’s sesquicentenary (150 years).  With production limited to a run of 1,482, thoughtfully the crystal decanter was supplied with a brace of tasting glasses, presumably to dissuade those buyers tempted to drink straight from the bottle.  According to Camus, the 5.150 is a blend of five distinct and rare eaux-de-vie from five different regions and is unique in the history of cognac.  A bottle was listed at US$13,500.

Most interesting choice of packaging materials: Hennessy Beaute du Siecle Cognac.  Unusually in an industry which tends to favor creations made from precious metals and stones when packaging its more extravagant products, Hennessy’s most expensive cognac comes in a one litre bottle and a container styled in the manner of an art deco jewel-box, rendered in aluminum and bronze.  Limited to an edition of one-hundred and priced at US$194,927, the designer was French artist Jean-Michel Othoniel (b 1964).

Most expensive by the glass: Croizet Cognac Leonie 1858. General Eisenhower is said on the eve of the D-Day landings in 1944 to have shared a couple of nips of the 1858 with Winston Churchill, the bottle liberated from somewhere.  One sold at auction in 2011 for US$156,760 but for a more manageable US$8,764, it’s available by the glass (a 40 ml (1.3 oz) nip) at the InterContinental in Hong Kong.  Founded in 1805, Croizet is one of the older cognac houses and bottles only single vintages, a rarity in the industry but not even they can replicate the original.  It was distilled with grapes picked from vines with a lineage back to those planted by Julius Caesar’s armies in 55 BC and is the only cognac of its kind left because the vines were destroyed in the great phylloxera crisis of the 1870s.  At US$8,764 a nip, supply is dwindling slowly but, once gone, that’s it.  To encourage consumption, the InterContinental Hong Kong’s Lobby Lounge uses it in what’s claimed to be the world’s most expensive cocktail, the US$13,919 Winston which includes also Grand Marnier, Chartreuse VEP and Angostura bitters.  Better value for money is probably the hotel’s VVIP Presidential Suite Cognac Croizet Experience which, for US$166,117, includes a two-night stay in the Presidential Suite, a bottle of the 1858, a paired menu created by their Executive Chef and exclusive access to the Cognac Croizet vineyards for up to four people in Charentes, near Bordeaux.  During the one-night stay, there's a tour of the estate, gourmet dining and a cognac-blending tutorial from the cellar master.

Best value: Frapin Château Fontpinot XO. It tends to retail around US$175 (US$2000 a dozen)) and is one of the most rewarding XO blends.  Although many treat the language of wine tasting with some derision, just inhaling the vapors of the Fontpinot XO really does  summon thoughts of dark chocolate, still juicy dried fruit, warm caramel and herbs.  There are many more expensive cognacs with a similar taste but few match the endless aromatics of this one.  It’s a economical purchase too because one tends to neglect drinking, just to longer enjoy breathing it in.

Oldest vintage sold at auction: Gautier Cognac 1762.  In 2020, a bottle of Gautier Cognac 1762, the largest of the three known still to exist, was sold by Sotheby’s for US$144,525.  In 1762, Britain was entering the Seven Years’ War, Catherine II was empress of Russia, Mozart was six years old and George Washington had just turned thirty.  Cognac remains cheap by auction standards, the record price achieved by wine being the US$558,000 realized by a 1945 Romanee-Conti while ancient bottles of single-malt Scotch whisky have sold for almost US$2 million.  The new owner was described only as “an Asian private collector” and Sotheby’s added the buyer would get to “enjoy a bespoke experience at Maison Gautier, courtesy of the distillery” as part of his winning bid.

The future of the contents isn’t known but the auction house claimed, though some two-hundred and sixty years on, it should still be drinkable.  Their expert revealed the opinion is based on (1) the ullage (level of liquid inside) which was high, suggesting that the seal had not been compromised so evaporation was thus minimal and (2) a pleasing OBE (old bottle effect), the quality of which is determined by whether it imparts either a pleasant “tropical” note or the less appealing “porridge-y” sound.  He did add however that because glass isn’t entirely inert, it would have imparted some flavor of its own.  That notwithstanding, he suspected the depth of flavor from grapes grown on ancient root stock could give the spirit a complexity different from that known in the modern era.

Restaurant

Restaurant (pronounced res-ter-uhnt (non-U), res-tuh-rahnt (non-U) or res-trahnt (U))

A commercial establishment where meals are prepared and served to customers.

1821: An invention of American English from the French restaurant, originally "food that restores", noun use of present participle of the verb restaurer (to restore or refresh) from the Old French restorer.  The French verb restaurer corresponded to the Latin restaurans & restaurantis, present participle of restauro (I restore), (the more familiar form in Latin being restaurāre (to restore)) from the name of the “restorative soup” served in the first establishments.  The term restaurant to describe the “restorative soup” was defined in 1507 as a "restorative beverage" and in correspondence in 1521 to mean "that which restores the strength, a fortifying food or remedy".  One who runs a restaurant is called a restaurateur; the Italian spelling ristorante was attested in English by 1925.

Modern capitalism has a proliferation of terms to describe variations of the restaurant, some ancient, some recent creations; they include bar, diner, joint, inn, outlet, saloon, cafeteria, grill, hideaway, dive, canteen, lunchroom, chophouse, eatery, pizzeria, drive-in and luncheonette.  The restaurant, in the sense now understood as a place where the public come to sit at tables and chairs and order food from a menu and are served their choices by a waiter is relatively new in culinary history, not emerging until the late eighteenth century.

One interesting (and specific) use of restaurant is to refer to hospitals.  Those who essentially starve themselves for professional reasons (models, ballerinas and others), not infrequently faint, officially "from exhaustion" but actually from their malnourished state.  Sometimes this means they get to go to "the restaurant" (hospital) where as well as relaxing, they can enjoy iv fluids and thus gain the necessary nutrition without having to eat a thing.

Origins

Lindsay Lohan in leather, arriving at Bobby Flay’s New York restaurant Gato, 2014.

Although all or some of the “official” history may be apocryphal, the story is that in 1765, a Monsieur Boulanger, (also known as Champ d'Oiseaux or Chantoiseau) opened his shop in Paris near the Louvre on either the rue des Poulies or the rue Bailleul (the history is unclear).  There he sold restaurants (or bouillons restaurants), meat-based consommés which gained their name from their intended purpose to "restore" a person's strength.  The word restaurants, rich, thick broths or soups, had since medieval times been used to describe any of a variety of rich bouillons made with chicken, beef, roots, onions, herbs, and depending on the region and season, spices, sugar, toasted bread, barley, butter, and even exotic ingredients such as dried rose petals, Damascus grapes, and amber.  Monsieur Boulanger’s bouillons proved popular but he also had a flair for advertising, placing in his window a sign saying: Venite ad me omnes qui stomacho laboratis et ego vos restaurabo (Come to me all who suffer from pain of the stomach and I will restore you.), the play on words an allusion to both the restorative quality of his broths and, from scripture, Jesus' invitation found in Matthew 11:28: "Come to me, all who labor and are heavy laden, and I will give you rest."

Seeking to expand his customer base and increase revenue, he began serving roasted leg of lamb with white sauce, thereby infringing the monopoly of the caterers' guild.  While there had long been places where customers could be served a variety of food, Monsieur Boulanger’s establishment was the first where there was a formal, printed menu, a concept previously a preserve of the guild.  The guild filed suit, and to the surprise of the Parisian legal and culinary establishments, the courts ruled in favor of Boulanger and the restaurant (établissement de restaurateur), in its modern form, emerged from this decision.  Historians usually suggest the first “real restaurant" (in the modern understanding of the word) was La Grande Taverne de Londres in Paris, founded by Antoine Beauvilliers (1754-1817) in either 1782 or 1786, combing as it did the “four essentials” of fine dining: (1) an elegant room, (2) gourmet cooking, (3) a fine cellar and (4) professional waiters.

Epicure, Le Bristol Paris, 112 Rue du Faubourg Saint-Honoré, 75008 Paris, France.

Oligarch

Oligarch (pronounced ol-i-gahrk)

(1) In political science, one of the rulers in an oligarchy (a system of government characterized by the institutional or constructive rule of a few and the literal or effective exclusion of the many); a member of an oligarchy.

(2) A very rich person involved in business in a manner which interacts intimately with the organs of government, the nature of the relationship varying between systems but usually with the implication of mutually beneficial corrupt or improper (if sometimes technically lawful) conduct.

(3) In cosmogony, a proto-planet formed during oligarchic accretion.

1600-1610: From the French oligarque & olygarche, from the Late Latin oligarcha, from the Ancient Greek ὀλιγάρχης (oligárkhēs) and related to oligarkhia (government by the few), the construct being olig- (few) (from stem of oligos (few, small, little) (a word of uncertain origin)) +‎ -arch (ruler, leader) (from arkhein (to rule)).  The noun plural was oligarchs.  In English, an earlier form of oligarchy was the circa 1500 oligracie, a borrowing from the Old French.  Oligarch & oligarchy are nouns, oligarchal, oligarchical & oligarchic are adjectives, and oligarchically is an adverb; the noun plural is oligarchs.  The playful minigarch (the offspring of an oligarch) and oligarchette (a female oligarch or an aspiring oligarch not yet rich enough to be so described are both non-standard while oligarchie & oligarchisch are sometimes used to convey a deliberate sense of the foreign.  Oligarch is now almost never used in its classical sense to refer to rulers of a political entity but instead to describe the small numbers of those who have become exceedingly rich, usually in some improper (even if technically lawful) way with the corrupt and surreptitious cooperation of those in government, the implication being they too have benefited.  Words like plutocrat, potentate and tycoonocrat are sometimes used as synonyms but don’t covey the sense of gains improperly and corruptly achieved.

Oligarchs are sometimes described in the press as "colorful characters", something a bit misleading because many seek a low profile, something often advisable in Mr Putin's Russia.  In a movie about oligarchs Netflix presumably would focus on some of the more colorful.

In modern use, an oligarch is one of the select few people who have become very rich by virtue of their close connections to rule or influence leaders in an oligarchy (a government in which power is held by a select few individuals or a small class of powerful people).  Unlike the relationship between “monarch” & “monarchy”, “oligarch” & “oligarchy” are not used in the literature of political science in quite the same way.  A monarch’s relationship to their monarchy is a thing defined by the constitutional system under which they reign and that may be absolute, despotic or theocratic but is inherently directly linked.  However, even in a political system which is blatantly and obviously an oligarchy, the members of the ruling clique are not referred to as oligarchs by virtue of their place in the administration, the more common descriptors being autocrat, despot, fascist, tyrant, dictator, totalitarian, authoritarian, kleptocrat or other terms that to varying degrees hint at unsavoriness.  Instead, the word oligarch has come to be used as a kind of encapsulated critique of corruption and economic distortion and the individual oligarch a personification of that.  The modern oligarch is one who has massively profited, usually by gaining in some corrupt way either the resources which once belonged to the state or trading rights within the state which tend towards monopolistic or oligopolistic arrangements.  Inherent in the critique is the assumption that the corrupt relationship is a symbiotic one between oligarch and those in government, the details of which can vary: oligarchs may be involved in the political process or entirely excluded but a common feature to all such arrangements is that there is a mutual enrichment at the expense of the sate (ie the citizens).  The word oligarch has thus become divorced from oligarchy and attached only to oligopoly.

The word oligopoly dates from 1887, from the Medieval Latin oligopolium, the construct being the Ancient Greek ὀλίγος (olígos) (few) + πωλεῖν (poleîn) (to sell) from the primitive Indo-European root pel (to sell) and describes a market in which an industry is dominated by a small number of large-scale sellers called oligopolists (the adjectival form oligopolistic from a surprisingly recent 1939).  Oligopolies, which inherently reduce competition and impose higher prices on consumers do not of necessity form as a result of improper or corrupt collusion and may be entirely organic, the classic example of which is two competitors in a once broad market becoming increasingly efficient, both achieving such critical mass that others are unable to compete.  At that point, there is often a tendency for the two to collude to divide the market between them, agreeing not to compete in certain fields or geographical regions, effectively creating sectoral or regional monopolies.  If competitors do emerge, the oligopolists have sufficient economic advantage to be able temporarily to reduce their selling prices to below the cost of production & distribution, forcing the completion from the market, after which the profitable price levels are re-imposed.

A classic game theory model of oligopolistic behavior.

Although not thought desirable by economists, they’ve long attracted interest interest because they create interesting market structures, especially when they interact with instruments of government designed to prevent their emergence or at least ameliorate the consequences of their operation.  The most obvious restriction governments attempt to impose is to prevent collusion between oligopolists in an attempt to deny them the opportunity to set prices of particular goods.  Even if successful, this can only ever partially be done because most prices quickly become public knowledge and with so few sellers in a market, most of which tend to operate with similar input, production & distribution costs, each oligopolist can in most cases predict the actions of the others. This has been of interest in game theory because the decisions of one player are not only in reaction to that of the others but also influences their behavior.

Dartz Prombron: The Prombron is now typical of the preferred transport for an oligarch, the traditional limousine not able to be configured to offer the same level of protection against attacks with military-grade weapons.  Prombrons were originally trimmed with leather from the foreskins of whale penises but the feature was dropped after protests from the environmental lobby.

Oligarchs in the modern sense operate differently and the Russian model under Mr Putin has become the exemplar although some on a smaller scale (notably Lebanon since 1990) are probably even more extreme.  The Russian oligarchs emerged in the 1990s in the chaos which prevailed after the dissolution of the old Soviet Union.  They were men, sometime outside government but often apparatchiks within, well-skilled in the corruption and the operations of the black market which constituted an increasingly large chunk of the economy in the last decade of the USSR and these skills they parlayed into their suddenly capitalistic world.  Capitalism however depends on there being private property and because the USSR was constructed on the basis of Marxist theory which demanded it was the state which owned and controlled the means of production and distribution, there was little of that.  So there was privatization, some of it officially and much of it anything but, the classic examples being a back-channel deal between the oligarch and someone in government purporting to be vested with the authority to sell the assets of the state.  Few in government did this without a cut (often under the guise of a equity mechanism called “loans for shares”) and indeed, some apparatchiks sold the assets to themselves and those assets could be nice little earners like oil & gas concessions or producers, electricity generators, transport networks or financial institutions.  One of the reasons the assets were able to be sold at unbelievably bargain prices was a product of Soviet accounting: because the book value of assets had so little meaning in communist accounting, in many cases recorded asset values hadn’t be updated in decades and were in any case sometimes only nominal.  There were therefore sales which, prima facie, might have appeared to verge on the legitimate.

2021 Aurus Senat, now the official presidential car of the Russian state.

Few were and in any event, even if the aspiring oligarch didn’t have the cash, somewhere in government there would be found an official able to arrange the state to loan the necessary fund from the resources of the state, if need be creating (effectively printing) the money.  From that point, newly acquitted assets could be leveraged, sold to foreign investors at huge profit or even operated in the novelty of the free market, an attractive proposition for many given the asset obtained from the state might be a natural monopoly, competition therefore of no immediate concern.  Thus was modern Russian capitalism born of what were economic crimes on a scale unimaginable to the legions condemned to death or years in the Gulag under comrade Stalin.  Even before becoming prime-minister in 1999, Mr Putin was well aware of what had happened, being acquainted with some of the players in the process but shortly after assuming office, he had small a team of lawyers, accountants and economists undertake a forensic analysis to try more accurately to quantify who did what and who got how much.  Although the paperwork his investigative project produced has never been made public, it was reputed to have been reduced to a modestly-sized file but the contents were dynamic and put to good use.

In either 2003 or 2004, Mr Putin, assisted by officers of the FSB (successor to the alphabet-soup of similar agencies (Cheka, GPU, OGPU, NKGB, NKVD, SMERSH, MGB & (most famously) KGB)) experts in such things, “arranged” a series of interviews with the oligarchs whose conduct in the privatizations of 1990s had been most impressive (or egregious depending on one’s view).  Well aware of the relationship between wealth and political influence, Mr Putin’s explained that the oligarchs had to decide whether they wished to be involved in business or politics; they couldn’t do both.  Mr Putin then explained the extent of their theft from the state, how much was involved, who else facilitated and profited from the transactions and what would be the consequences for all concerned were the matters to come to trial.  Then to sweeten the deal, Mr Putin pointed out that although the oligarchs had stolen their wealth on the grandest scale, “they had stolen it fair and square” and could keep it if they agreed to refrain from involvement in politics.  The Russian oligarchy understood his language, the lucidity of his explanation perhaps enhanced by oligarch Mikhail Khodorkovsky (b 1963; then listed as the richest man in Russia and in the top-twenty worldwide) being arrested on charges of fraud and tax evasion, shortly before the meetings were convened (he was convicted in 2005 and sentenced to nine years in prison and while serving his sentence was charged with and found guilty of embezzlement and money laundering.  Mr Putin later pardoned Khodorkovsky and he was released to self-imposed exile in late 2013).  Few failed to note the significance of Mr Khodorkovsky having been "meddling in politics". 

Mr Putin being taken for a drive by George W Bush (b 1946; George XLIII, US president 2001-2009) in the Russian president's GAZ M21 Volga and admiring his 2009 Lada Niva.

In a sign the oligarchs were wise to comply, it was estimated by Bill Browder (b 1964; CEO and co-founder of the once Moscow-linked Hermitage Capital Management) during his testimony to the US Senate Judiciary Committee in 2017 that the biggest single increase in Mr Putin’s personal wealth happened immediately after Mr Khodorkovsky was jailed.  Given the history, Mr Browder is perhaps not an entirely impartial viewer but the pact between the autocrat and the oligarchy has been well-understood for years but what has always attracted speculation is the possibility that attached to it was a secret protocol whereby Mr Putin received transactional fees, imposing essentially a license to operate in Russia, alleged by some to be a cut of as much as 50%, based apparently on assessed profits rather than turnover.  Even if a half-share is too high and his cut is a more traditional 10%, the amount payable over the years would have been a very big number so there’s been much speculation about Mr Putin’s money, some estimates suggesting he may have a net wealth in the US$ billions.  That would seem truly impressive, given the Kremlin each year publishes a disclosure of their head of state’s income and assets and the last return disclosed Mr Putin enjoys an annual salary of US$140,000 and owns an 800-square-foot (74 m²) apartment, his other notable assets being three cars: a 1960 (first series) GAZ M21 Volga, a 1965 (second series) GAZ M21P Volga and a 2009 Lada Niva 4x4.  Keen on the outdoors, he also owns a camping trailer.

A country cottage on the Black Sea coast alleged to be owned by Mr Putin.  The large grounds surrounding the cottage are an indication why Mr Putin needs his 2009 Lada 4x4 & camping trailer.

On the basis of that, income and net wealth seem not at all out of alignment but intriguingly, he’s been photographed with some high-end watches on his wrist, including an A. Lange & Söhne 1815 Tourbograph which sells for around US$500,000.  He is rumored to be the owner of a 190,000 square-foot (17,650 m²) mansion which sits atop a cliff overlooking the Black Sea (reputedly Russia’s largest private residence and known, in a nod to the understated manner of the rich, as “Putin’s country cottage”) which has an ice hockey rink, a casino, a nightclub with stripper poles, an extravagantly stocked wine cellar and the finest furniture in Louis XIV style, the toilet-roll holders apparently at US$1,250 apiece (although, given the scale of the place, he may have received a bulk-purchase discount).  It demands a full-time staff of forty to maintain the estate, the annual running costs estimated at US$2-3 million.  Designed by Italian architect Lanfranco Cirillo (b 1959), and officially owned (though alleged to be held under a secret trust of which Mr Putin is the sole beneficiary) by oligarch Alexander Ponomarenko (b 1964), the construction cost was estimated to be somewhere around a US$ billion which seems expensive but a yacht currently moored in Italy and alleged also to belong to Mr Putin is said to have cost not much less to launch so either or both may actually represent good value and to assure privacy, the Russian military enforces a no-fly zone around the property.  Like many well-connected chaps around the world, a few of Mr Putin’s billions figured in the release of the Panama Papers in 2016.

1962 GAZ-M21 (rebuilt to KGB (V8) specifications).

Apart from the Black Sea palace, there are unverified reports Mr Putin is the owner of 19 other houses, 58 aircraft & helicopters and 700 cars (although it’s not clear if that number includes his two Volgas and the Lada).  No verified breakdown of the 700 cars has ever been published but given Mr Putin’s apparent fondness for Volgas, it may be his collection includes the special-variant of the GAZ-M21 Volga, 603 (as the GAZ-M23) of which were produced between 1962-1970 for the exclusive use of the KGB and other Soviet “special services”.  Equipped with the 5.53 litre (337 cubic inch) V8 engine from the big GAZ-13 Chaika (Gull) (1959-1981 and in the Soviet hierarchy, second only to the even bigger ZIL limousines (1936-2012)), the car was said to be a not entirely successful piece of engineering but it was certainly faster than the four-cylinder model on which it was based.  It’s never been clear just what was the top speed because the speedometer was calibrated only to 180 km/h (112 mph) but one intrepid KGB apparatchik claimed to have achieved that and reported the Volga was “still accelerating”.  Known to be nostalgic for the old ways of the KGB, it’s hoped Mr Putin has preserved at least one.

Mr Putin agitprop.

Mr Putin has admitted: "I am the wealthiest man, not just in Europe but in the whole world: I collect emotions. I am wealthy in that the people of Russia have twice entrusted me with the leadership of a great nation such as Russia. I believe that is my greatest wealth."  Quite how rich Mr Putin might be is such a swirl of estimates, rumors, supposition and doubtlessly invention (lies) that it's unlikely anyone except those disinclined to discuss the matter really know and after all, if he's rich as his detractors claim, he probably isn't exactly sure himself.  Given that, his statement seemed intended to clear up any misunderstandings.