introducing the 13% flat income tax in Russia, in earlier repayment the Russian foreign debt, in creation the petroleum revenues-based Stabilization Fund of the Russian Federation and in bringing Russia's full-fledged membership into the political G8. While he was a Kremlin economic adviser, he served on the supervisory board of the Central Bank of Russia and accessed the accounts of the Russian foreign state banks. He found that in 1992 Russia's money from the $1 billion IMF loan was used to prevent the collapse of the Soviet Union and later Russia associated KGB's Eurobank in Paris by transferring the $1 billion to the Jersey-based FIMACO which bought Eurobank's bad debts, that Yegor Gaidar was behind the scam, and that Boris Fyodorov, who was the finance minister of Russia and a close associate of Illarionov, was not told of the scam. Eurobank is one of the most important finance centers of the Soviet Union and Russia for foreign intelligence operations of the KGB and GRU. Allegedly, in 1990, the Soviet Union had a $1.75 billion loan from Saudi Arabia, United Arab Emirates, and Kuwait as payment for the Soviet Union's veto of Desert Storm which removed Saddam Hussein. Allegedly, after the failure of Vnesheconombank (VEB) resulting in its accounts frozen on 1 January 1992, this was the first debt that the Russian government had to pay through "Eurobank" in Paris ("Banque Commerciale pour l, Europe du Nord") and the Russian network of Roszagranbanks to the Soviet and Russian foreign intelligence associated finance centers including Evrofinance (Moscow), RTD France (Paris), Eurogrefi (Paris), and others. On 3 January 2005 Illarionov resigned from his position as presidential representative to the G8 because of the government troops' storm of the Beslan school on 3 September 2004 leading to death of 333 children, their parents and teachers. On 21 December 2005, Illarionov declared "This year Russia has become a different country. It is no longer a democratic country. It is no longer a free country". The Washington Post reported that he had cited a recent report by the human rights observer Freedom House. On 27 December 2005, Illarionov offered his resignation as economic adviser in protest against the stealing of billions of dollars by Putin's inner circle from the Russian state via the IPO of state-owned company Rosneft. He claimed that Russia was no longer politically free and was run by an authoritarian and corrupt elite.