07
December 2011

Doing business in Russia under Putin

CNN

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05
December 2011

One (Rich) American vs. Moscow: The Quest of William Browder

TIME

In October, Harvard Business School began teaching a new case study about Russia, which, in the words of one of its authors, “reads like a potboiler.” In 20 pages, it lays out one of the most tragic experiences a foreign investor in Russia has ever had — the case of the American fund manager William Browder, who was banned from entering the country in 2005, and his lawyer, Sergei Magnitsky, who died in a Russian prison four years later. It is meant to impress a number of lessons on Harvard’s latest crop of geniuses. For example, Exhibit 9, as the text goes, offers a “price list” of “bribes,” including the cost of getting a competitor’s license revoked (allegedly as little as $1 million). But the broader message lines up nicely with what seems to be Browder’s creed: Kids, if you know what’s good for you, stay the hell away from Russia.

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02
December 2011

Members of Presidential Council take part in questioning re: Magnitsky case

ITAR-TASS

The Council under the President of the Russian Federation for the Promotion of Civil Society and Human Rights took part in the questioning of defendants in the so-called Magnitsky case, Mikhail Fedotov, the Council’s head, who takes part in the second Russia-EU Civil Society Forum, told reporters here on Thursday.

“We have received an investigator’s invitation to dispatch members of the Council to take part in the questioning of defendants in the case on Magnitsky’s death,” he said. He noted that this joint work had already been done and members of the Council had taken part in the questioning. “This was an unprecedented level of openness to public scrutiny that set a very good example. We have reached agreement with chairman of the Investigation Committee Bastrykin that such practice should become norm,” Fedotov added.

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01
December 2011

ECFR Black Coffee Morning – ‘Dealing with a post-BRIC Russia’

European Council on Foreign Relations

With Nicu Popescu, Senior Policy Fellow, ECFR, William Browder, CEO, Hermitage Capital Management and chaired by Edward Lucas, International Editor, The Economist

Wednesday 7th December, 8.30-9.30 am (registration from 8.15 am)
Venue: ECFR office, 3rd Floor Conference Room, 35 Old Queen Street, London SW1H 9JA

Dear Colleague,

The European Council on Foreign Relations is delighted to invite you to an invitation-only discussion entitled ‘Dealing with a Post-BRIC Russia’ with Nicu Popescu, senior policy fellow at ECFR, William Browder, CEO, Hermitage Capital Management and chaired by Edward Lucas, international editor, The Economist. The meeting will take place on Wednesday 7th December between 8:30 and 9:30 am at ECFR’s office in Westminster.

Vladimir Putin will return to the Presidency but to a different Russia. The global economic crisis has shattered Russia’s dream of being a BRIC that is on a par with China, India and Brazil. Russia no longer has the optimism of a rising power. Instead it has the pessimism of the West and few in Moscow have illusions about resurgence and many fear stagnation and “Brezhnevization”. In short, Russia is now post-BRIC. This has caused a foreign policy re-think in Moscow. Russia has streamlined its approach in the post-Soviet space, is increasingly nervous of China and has “reset” relations with the US. Yet paradoxically, the European Union now treats Russia more like a BRIC than it did before 2008 – having abandoned hopes to see Russia as a “big Poland” that can be slowly democratised through conditionality, it is reconciled to treating its biggest neighbour like “a small China” with which you do business and little else. How can a weakened EU react to Putin’s return to a post-BRIC Russia?

Nicu Popescu is a senior policy fellow and head of ECFR’s programme on Russia and Wider Europe. In 2010-2011 Nicu served as advisor on foreign policy and European integration to the Prime-Minister of Moldova where he dealt with a wide range of issues related to EU-Moldova relations. He has recently published a book entitled EU foreign policy and the post-Soviet conflicts: Stealth Intervention.

William Browder is the Founder and CEO of Hermitage Capital Management, the largest foreign investor in Russia until November 2005, when he was suddenly denied entry to the country and declared “a threat to national security”. Since the death of Sergei Magnitsky, Mr Browder’s lawyer, he has been leading a worldwide campaign to expose the corruption, rule of law and human rights abuses committed by Russian government officials. Through his advocacy campaign, a law was introduced in the United States Congress entitled the “Sergei Magnitsky Rule of Law Accountability Act of 2011” that would impose visa entry bans and asset freezes on Russian officials who commit human rights abuses as well as on those who cover up corruption.

Edward Lucas is the international editor of The Economist and has been a specialist in the countries of central and eastern Europe for more than 25 years with postings including Berlin, Moscow, Prague and Vienna. In the early 1990s he was the major shareholder of The Baltic Independent, an English-language weekly in the Baltic states. He is the author of The New Cold War: Putin’s Russia and the Threat to the West (2008) and of a forthcoming book on east-west espionage.

We very much hope to welcome you to this event. Places are limited, and will be allocated on a first come first served basis. Coffee and tea will be served from 8.15 am. Please confirm your participation as soon as possible by email to london@ecfr.eu.  For more information about the work of the European Council on Foreign Relations please visit www.ecfr.eu.

Mark Leonard
Director
European Council on Foreign Relations
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01
December 2011

Russians tire of corruption spectacle

BBC News

The most successful political slogan in Russia this year has been one coined by the opposition.

Say the phrase “the party of crooks and thieves”, and almost everyone knows who you are talking about – the ruling party, Vladimir Putin’s United Russia.

Although United Russia looks likely to win again in parliamentary elections on Sunday, there is growing dissatisfaction in the country.

Over the past few years, people have seen bureaucrats and politicians buying mansions and luxury cars, way beyond anything their official salaries could pay for.

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30
November 2011

Human rights activist shows government what she really thinks

Sunday World

Lyudmila Alexeyeva, a human rights activist and one of the founders of the Moscow Helsinki Watch Group, made this gesture during a news conference dealing with the investigation of Hermitage Capital lawyer Sergei Magnitsky’s death, in Moscow.

Sergei Magnitsky was arrested after accusing Interior Ministry officials of corruption and died in custody in 2009.

Magnitsky, 37, had accused the Interior Ministry officials of using false tax documents to steal $230 million from the state.

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30
November 2011

State Department Takes Action Against Chechen Leader

Commentary Magazine

After the U.S. instituted a travel ban against the Russian officials involved in the death of Sergei Magnitsky, Russia responded with its own visa “blacklist” of American officials unwelcome in the Russian Federation. But the State Department seems to have one-upped the Russians again.

Chechen President Ramzan Kadyrov, the Kremlin’s brutal surrogate in the North Caucasus, has now been given the diplomatic cold shoulder:

Thoroughbred racing has always attracted a mix of royalty and rogues. Blue bloods like the Whitneys and the Vanderbilts have long been owners. So, too, have mischief-makers like the mobster Arnold Rothstein, who won the 1921 Travers at Saratoga with a racehorse named Sporting Blood.

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30
November 2011

Russia Declares Litvinenko Murder Suspect a Victim

Wall Street Journal

In a new twist of Cold War-style tit-for-tat accusations, Russia asserted Wednesday that Britain’s chief suspect in the poisoning of Kremlin critic Alexander Litvinenko in 2006 was himself the target of a murder attempt with the same radioactive substance.

The declaration by Russia’s top investigative body, the Investigative Committee, is likely to deepen the diplomatic chill between Moscow and London, and widen the gulf between Russian and western law enforcement agencies.

Russian investigators have appeared recalcitrant in the Livtinenko case, and the government has refused to extradite the polonium suspect, Andrei Lugovoi, calling it a matter of national sovereignty.

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30
November 2011

ECFR Report: Dealing with a post-BRIC Russia

European Council on Foreign Relations

The European Council on Foreign Relations has released its latest report, ‘Dealing with a post-BRIC Russia’ by ECFR Policy Fellows Ben Judah, Jana Kobzova and Nicu Popescu.

The overall outcome of parliamentary elections on December 4th – with only tame parties standing in opposition to Putin – is not in doubt, but the specific results may signal that the Putin system is losing its legitimacy, just as he readies himself to retake the presidency (possibly until 2024). But Putin would not be returning to the same Russia as when he last held the presidency: buffeted by economic turbulence and fearful of stagnation, Russia is now post-BRIC. It no longer believes it shares the same power-trajectory as Brazil, India and China; instead, it thinks it is in relative decline with the West.

‘Dealing with a post-BRIC Russia’ looks at the domestic and foreign policy constraints on a post-BRIC Russia that will shape Putin’s next presidency. It analyses how Europe should rethink its relationship with Moscow. The authors argue that:

The economic crisis has exposed a governance crisis inside Russia: even Putin now admits that as much as 80% of Kremlin orders have been ignored in the regions. Instead of modernising, Russia in 2010 was as corrupt as Papua New Guinea, had the property rights of Kenya and was as competitive as Sri Lanka.

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