Chapter 5: Emergency Gathering

Ivan, his two younger brothers, Yegor and Anton, and their sister, Olga gathered in the room, excluding the paternal grandfather's siblings. The adult's direct descendants were all present, with Nikolai sitting behind his parents along with his siblings. The cousins cautiously sat behind their parents. 'Considering the significance of this gathering, it seems like an important discussion is about to take place.'

Everyone seemed tense as if it was their first time coming together like this, and they anxiously watched their grandfather, Yuri Yusupov, for cues. However, Nikolai calmly surveyed his surroundings. The room was adorned with wooden interiors, but what stood out the most were the shelves filled with books on two walls. It was apparent that his grandfather reads a lot, unlike the ostentatious display of thick, standardized hardcovers found in most wealthy households.

'Being in this position isn't solely because we are part of the family, which means there must be a deeper meaning behind this sudden gathering...'

Just as Nikolai was contemplating alone, Yuri Yusupov began to speak. "Until now, the adults have held meetings among themselves, but the situation has changed. In times when the country is undergoing rapid changes, as members of the Yusupov family, it is important for all of you to understand how you should act."

Nikolai's cousins cautiously nodded their heads. Most of the Yusupov family members attended or graduated from Moscow University. Everyone present in the room was also a graduate of Moscow University, except for two individuals: Nikolai and his elder brother, Denis. Nikolai, despite having exceptional intellectual abilities, pursued fine arts, while Denis studied abroad in the United Kingdom. Yuri Yusupov took great pride in the academic achievements of the family members. Thus, he gathered everyone to hear their opinions, considering the possibility that he might have missed something important.

"Although I am seeking the opinions of others to gain more certainty, I have a somewhat complete picture already formed in my mind. So, don't feel burdened by this situation. Now, let's begin."

With that, Father Ivan cleared his throat and started the discussion. "Those who are aware knew that power would shift from Gorbatchev to Yeltsin after the coup in August of last year. However, we didn't expect it to happen so quickly."

"Because they swiftly seized control of the administration and military. It seemed as if they were prepared."

"So, the decision to privatize state-owned enterprises to the private sector must be President Yeltsin's personal desire?"

In response to Ivan's question, Yuri Yusupov nodded. "It's no different from relying on the power of the Western world to secure their regime. They couldn't help but consider their reactions."

"Although reform and openness have been ongoing since the time of Gorbatchev's secretary-general, they were not as radical as this."

Boris Yeltsin, the first president of the Russian Federation, was a figure who dramatically dismantled the transition from a 'centrally planned economy' to a 'capitalist market economy.' Under the guise of 'shock therapy,' there was indiscriminate privatization and the sale of national assets for the benefit of oligarchs, leading to immense confusion. These reforms plunged Russia into a path of decline, where the people's bank deposits and various social safety nets became worthless, and corruption ran rampant.

And by the end of the year, the Russian economy will experience a staggering 2,600% inflation, further shattering it. In a situation already on the brink of collapse, criminals take advantage of this chaos to engage in organized crime (local mafia) activities.

Due to this, public safety deteriorates to an extent comparable to African and South American countries. Nikolai, already aware of these facts, listened intently, curious about what would be said next.

"As mentioned, the government has announced its policy to privatize state-owned enterprises. We have two options to choose from."

Upon hearing the mention of acquiring companies, some individuals' lips curled slightly, as if they had gained possession of something. "Ivan, Yegor, Anton, Olga. What are your thoughts?"

The second son, Yegor, was the first to speak up. 'Wouldn't the automobile industry be a good choice? Although it requires a substantial initial investment, the growth potential is greatest in the automotive sector.'

Next, the third son Anton and Olga shared their opinions. "Are there any sectors that are not heavily involved in the industry? I think the steel industry would be a better option."

"Father, wouldn't stable businesses be preferable in times like these? In that regard, food industry companies are the best."

The opinions regarding company acquisitions seemed rather weak. Yuri furrowed his brows at the presented opinions, which felt as if they were laid out like items on a shopping list. Meanwhile, Ivan remained silent. As the cautious eldest son, Yuri was curious to know what he would say. "Ivan, why are you not saying anything?"

Yuri's question prompted Ivan to present his opinion slowly. "The government's intention to sell off state-owned enterprises implies that the state's financial deficit has reached an unsustainable level."

"I suppose so."

"Selling state-owned enterprises to the private sector to cover losses, is that feasible? It's just a temporary solution. It doesn't address the fundamental problem."

"Hmm."

"Father, perhaps today's gathering may become a critical moment for our family. We must make careful judgments."

After Ivan finished speaking, the third son Anton stepped forward as if he had been waiting. "The government's policy has already been announced. We have to choose two companies out of the five. What's the point of discussing it now?"

"Anton makes a valid point. While being cautious is good, we have to make a decision within a week." Yuri agrees.

Second son Yegor also emphasized the importance of deciding on a company as soon as possible rather than being overly cautious. After listening to their words, Olga realized the solution: they had to select two companies within a week. Automobile, energy, steel, construction, and food industry companies. The conversation continued for another 30 minutes without reaching a conclusion. Frustration deepened the wrinkles on Yuri Yussupov's forehead. He turned his gaze to his grandchildren, perhaps trying to cool down the heated atmosphere. 'Since you've heard the discussion, share your opinions.'

However, no one opened their mouths first. Yuri sighed and pointed at one of his grandchildren. "Then, you go ahead and speak.'

The person who was first pointed at was the eldest son of the second son. "I think Father's idea is correct. Automobiles are part of the comprehensive machinery industry, so it would be good to acquire a car company first and, if possible, a steel company."

'Do you mean that automobiles and steel are a priority over energy?'

"The government's top priority industry is energy. Even if we acquire it, I don't think we would have the freedom to operate it."

It sounded plausible at first glance. However, it was not much different from the opinions expressed by the adults earlier. Yuri Yussupov, with nothing much to say, shifted his gaze to the next person. "What about you?"

"Me?"

"Yes, you."

The person who was lost in thought at such an important moment turned out to be the eldest son of the third son, Anton. He was the cousin who had run away earlier but now cleared his throat and spoke. "Wouldn't it be better to stay quiet in such a chaotic time? After all, nobody knows how the situation will change with the country's transition. It might be better to strengthen the foundation of our existing business."

"Does that mean ignoring the government's demands?"

"It's not necessarily about that…"

Although it seemed like he had nothing in his mind, his response was slightly better than the first one. In fact, during tumultuous times like this, everyone tends to be hesitant to take action. If staying still was a method, like the saying "Staying below the radar," then it could be considered a method. Yuri's gaze now shifted towards Denis, Nikolai's elder brother. It was probably because he was the eldest grandson in the family and they wanted to hear his opinion last, but his expression clearly showed a lack of enthusiasm. He had shown no interest in the family's affairs even after returning from studying in the UK. "What are your thoughts?"

"Grandfather, do we absolutely have to acquire two companies?"

"Huh?"

"I am not so sure about this like Father said. "Secure cash during times of confusion" is a basic principle of economics. However, acquiring two companies would require a tremendous amount of funds. I'm not sure if it's the right decision.'

'So studying abroad paid off, huh?'

It was an acknowledgment of Denis's opinion to some extent, but contrary to his words, Yuri's expression was not much different from before. It was a clear demonstration of the limitations of his children's and grandchildren's opinions. While he showed some interest in the opinions of his eldest son Ivan and his eldest grandson Denis, they were not decisive enough to determine the future of the family.

The sons wanted to acquire the two companies so that they would be in charge, no matter what. However, the grandsons presented their opinions with a slightly different perspective, which had some resemblance to Yuri's thoughts. However, that was as far as it went. Yuri Yusupov inwardly clicked his tongue. "It was too much to conclude right away."

He shifted his gaze and wanted to change the topic of conversation for a moment, perhaps to distract from the expectations and disappointments regarding the company acquisitions. Just then, his grandson, who had recently returned from a trip after breaking off an engagement with the Romanov family, appeared. "Did you enjoy sightseeing in St. Petersburg?"

It was a sudden question that deviated from the previous topic, but Nikolai, who had been fully focused, immediately answered, "Yes, I visited various places."

"Good. Travel is the best way to forget unwanted memories."

It was a moment where the fate of his sons could be determined. Ivan, the father, showed no change in expression, but Maria, the mother, had a trace of worry on her face. She knew Yuri's firm personality better than anyone else, and her body trembled, but she gathered strength in her legs and persevered. Strangely enough, the fate of Nikolai and the family was being decided in that very place today. Nikolai listened to his grandfather's words and waited for the right timing. "Let's hear your thoughts. Do you share the same opinion as your father?"

"Our perspective on the government is the same, but we need to look into it more closely."

"More closely?"

"Yes. The government is trying to sell state-owned enterprises because they lack funds, as Father mentioned. So they attempted to increase the money supply through monetary reforms."

"But?"

"This ultimately means a devaluation of the currency, and as a result, there will be rampant inflation."

"Hmm."

From now on, I have to take the lead and assert myself. Nikolai boldly asked his grandfather a question before sharing his own opinion. "Before I share my opinion, there's something I'd like to ask you, Grandfather."

"Go ahead and ask."

"What will happen if we disregard the government's demands and do not acquire the two companies?"

"Hmm... it might hurt me a little bit, but I have enough power to refuse the acquisitions. We can always find other places to buy them from."

Even a toothless tiger is still a predator, isn't it? "So, Grandfather, you used the power of our family to secure the first rights to the five companies?"

"That's right."

It also meant that they had their eyes on the prime assets, drawing attention from other families. "Do you plan to take something from the Romanov family as well?"

Yuri responded affirmatively without words. Seeing his reaction, Nikolai seemed to ponder for a moment before concluding. "Well then, just give it away as if it's a concession."

"What? Give it away?"Yuri Yusupov and even the relatives had expressions of disbelief.

"Yes. When the time comes, we can buy not only these five companies but also other companies at very low prices."

"On what grounds?"

This is where it becomes crucial. Nikolai slowly and methodically explained, citing the content he had studied in the past and the current reality. Although it was an example, his words referred to an event that had undoubtedly occurred in the country's history. "A few days ago, I visited a state-owned store, and I noticed that the prices of rye bread, flour, and sugar had increased by 15% compared to a month ago."

"Since they implemented price liberalization, it's natural for prices to rise."

'That inflation could rise.' My, does he not realize how dangerous the current situation is? Even though there might be some hope that the country will improve in the future, Russian citizens are about to experience hell due to the skyrocketing inflation and the plummeting value of their currency in just two months. Or perhaps he knew the danger was approaching but chose to deny it. Nikolai decided to be more proactive, fearing that their family might end up destitute before they even had a chance to flourish.

"We chose to abandon the 'central planned economy of socialism' that has been in place for decades and adopted the 'capitalist market economy', as your grandfather mentioned earlier. Furthermore, we went as far as implementing price liberalization."

"..."

"Not only that, we also abandoned the 'fixed exchange rate system' and adopted the 'floating exchange rate system.' The government swiftly carried out all these measures. Without a doubt, two side effects will manifest."

"Two side effects?"

"As I mentioned before, the first one is the hyperinflation of the currency, and the second one is the skyrocketing of prices. These two are interconnected, so when one happens, the other follows automatically. So, the current 15% is not just a simple 15%."

"As you said, considering the numerous measures taken and the transformation of the country, some level of side effects is expected."

Others might have anticipated some level of side effects, just like his grandfather. However, what if the actual impact exceeds the expected range by an enormous margin? "It could reach thousands of percent. Not just some level."

"..."

"It's not an exaggeration."

Being a prominent figure in the country's major business conglomerates doesn't necessarily mean he understands economics inside out.

Like ordinary people, the Yusupov family is experiencing this sudden change for the first time. The Yusupov family, with its massive scale, was struggling to adapt quickly to the changes. "The collapse of a huge dam happens because of a small hole being missed, and before a massive earthquake occurs, there are numerous precursors. Now is that moment."

Listening to Nikolai's words, the second son, Yegor, smirked and spoke up, "Sounds plausible. Our Nikolai must have studied economics through books while drawing his paintings. But the reality is different from books. Do you think others won't know what you know?"

"He's still young. He doesn't know how the world works. What can a boy who only draws pictures understand? Just go easy on him."

The third son, Anatoly, who is known for being straightforward, found Yegor, who twists and turns everything, more irritating. "So, do you mean we should buy steel and automobile companies, as you said earlier? And if we suffer enough losses to shake the family due to the factors you mentioned, will you two take responsibility?"

Here, the responsibility completely retreats from the scene. In response to Nikolai's words, the youngest aunt clenched her lips, barely containing a laugh that was about to burst out. But the faces of the two men were noticeably tense. Just as Yegor was about to say something, their grandfather asked first, "What do you plan to do?"

"Now, we need to convert all our cash holdings into dollars or things like gold. We should borrow as much money as possible besides what we have. In time, the borrowed principal and interest will become nothing. Also, the abandoned companies will come back to the market at a low price, so we can buy them back then."

As they finished speaking, the room fell so silent that one could hear a pin drop. After a moment of contemplation, Yuri Yusupov slowly spoke, "The rest of you, leave now."

His words were directed at his grandchildren. If they made a different decision despite his clear opinion, it would mean that the luck of the Yusupov family had reached its limit. Nikolai had said everything he wanted to, so he left with a sense of relief. The decision now rested solely with his grandfather.

Only Yuri Yusupov and his children remained in the room. Yuri had anticipated that various situations would change rapidly, as Nikolai had mentioned, resulting in some expected side effects. However, his grandson's words went far beyond what he had envisioned. With a stern expression, Yuri looked at his children and made up his mind. "Do as Nikolai suggested."

"Father! How can you make such an important decision based on your grandson's words?"

"We can't give up on everything. If we miss this opportunity, our family will fall considerably behind the upper class."

Despite the strong objections from his second and third children, Yuri didn't change his mind. "As Nikolai suggested, use all available funds to buy dollars and gold. Now is not the time to expand our scale."

"Father!"

"Father!"

In contrast to their disapproving shouts, Nikolai's parents only wore expressions that seemed to express disbelief in Yuri's decision. "Pathetic. Blinded by greed. Tsk. You have less insight than Nikolai, who only paints. Start immediately!"

In the Yusupov family, Yuri's words were akin to law. Since the order had been given, those below had no choice but to carry out the law.

The two brothers were conversing in the garden as they saw off the last guest. "Isn't it a bit much to pour all of our funds into this?"

"What are you trying to say?"

"We should set aside some of the operating funds for the company. It seems too risky to invest the majority of our funds. Father seems to have taken Nikolai's words too seriously..."

"Father didn't even consider such things; he just gave his orders?"

With a hint of sarcasm in his voice, Yegor, the second brother, asked Anton, the third brother. "Will you do as Father says?"

"And if I don't?"

"Ugh, what to do... We can't oppose Father's orders. But I also don't feel like following Nikolai's advice. Argh, now father's getting old, and yet he was convinced by our grandson's words..."

"Do as you wish. If you can handle the consequences."

Despite Yegor's warning, Anton did not let go of his displeased expression. He then gazed across the garden, watching the Ivan family, their larger relatives, walking towards the gate. Following Nikolai's advice was a personal decision, and whether to heed it or not was up to each individual. Someone might choose to disobey Yuri Yusupov's order, just as Zhenya's 'Romanov family' had decided to do.

Author's Note

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