Posts Tagged ‘FT’
The Sergei Magnitsky bill
When Congress takes the lead on foreign policy the result is not usually optimal. Some worry that America’s first branch of government is about to add to its dubious record with passage of the Magnitsky bill – named after the Russian lawyer who died in a Moscow jail in 2009 after having exposed massive corruption.
There are reasons to worry Congress may be overreaching. But the bill should not be discarded. Russia may be an indispensable, if frequently obstructive, international partner. But at home its government sometimes behaves like a criminal enterprise. The treatment of Sergei Magnitsky is one such instance.
There are two main objections to the bill in its latest form. Neither is insuperable. The first concerns the need to accommodate Russia’s recent entry into the World Trade Organisation, which is a White House priority in what remains of this Congress. In order to comply with WTO rules, the US has to scrap the 1974 Jackson-Vanik law, which linked the Soviet Union’s trade access to human rights benchmarks, notably its treatment of Jewish “refuseniks”. The law lost its purpose after the USSR’s collapse in 1991.
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‘Magnitsky law’ makes progress in Senate
By Catherine Belton in Moscow and Geoff Dyer in Washington
A US Senate committee has approved a bill named after Russian anti-corruption lawyer Sergei Magnitsky that would impose sanctions on human rights abusers as new evidence emerged concerning the events leading up to Mr Magnitsky’s death.
On Tuesday the Senate foreign relations committee approved the “Magnitsky Law”, which has also passed a committee in the House of Representatives and which imposes restrictions on the financial activities and travel of Russian officials allegedly involved in the case.
The vote was held as friends and former colleagues of Mr Magnitsky released evidence that showed those accused by the lawyer of taking part in a lucrative tax rebate fraud had flown on numerous trips abroad with the owner of the bank that received the funds.
Mr Magnitsky died in a pre-trial detention centre in November 2009, more than a year after he alleged that a circle of interior and tax ministry officials had conspired to defraud the Russian budget through a $230m tax fraud scam.
The federal prison service has assumed partial responsibility for his death, accepting he was denied medical attention, while a government human rights council concluded that he was probably beaten to death while in custody on separate tax fraud charges.
His case has become a big irritant for the Obama administration’s efforts to “reset” relations with Russia and Moscow has threatened retaliation if the Magnitsky bill becomes law.
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Obama set to press Putin on Syria at G20
After a week when it sometimes felt as if the cold war had never ended, Barack Obama will finally get some quiet time on Monday with Vladimir Putin to press the new Russian president on the crisis in Syria.
With senior diplomats from both countries trading unusually aggressive barbs in recent days, Mr Obama plans to use a meeting on the sidelines of the G20 summit in Mexico to privately test whether the US and Russia can find common ground on Syria, according to senior US officials.
The first encounter between the two presidents since Mr Putin’s return to presidential office will be a critical showdown in the diplomacy of the Syrian crisis. But it also will provide an indication of where US-Russia relations are headed under a leader who has a notoriously sceptical view of US power – and who declined to attend last month’s G8 summit at Camp David, a move many interpreted as a snub.
Mr Obama faces the delicate task of trying to forge a good working relationship with Mr Putin while Congress is moving close to passing the Magnitsky bill, which criticises Russia’s human rights record.
Complicating matters even more, Mr Obama is in the midst of an election campaign in which his Republican opponent is looking to pounce on any signs of concessions.
“The Magnitsky case … supports my point that we are in for much more difficult times in the relationship with the US,” says Alexei Pushkov, chairman of the Russian parliament’s foreign affairs committee.
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Moscow trade move on US agenda
Momentum is growing in Congress for legislation to normalise US trade relations with Russia in connection with its looming accession to the World Trade Organisation.
A bipartisan group of influential senators on Tuesday introduced a bill that would grant “permanent normal trade relations” status to Russia, calling for fellow lawmakers to approve the legislation over the next two months.
The bill – sponsored by Max Baucus, the chairman of the Senate finance committee – would also repeal the Jackson-Vanik amendment, a provision of US law designed in the 1970s to restrict trade with countries that restrict emigration.
“Jackson-Vanik served its purpose during the cold war, but it’s a relic of another era that now stands in the way of our farmers, ranchers and businesses pursuing opportunities to grow and create jobs,” said Mr Baucus. “We owe it to American workers and businesses to enable them to take advantage of the doors opening in Russia.”
The move comes amid persistent concerns harboured by many US lawmakers about Russia’s foreign policy – particularly with regard to Syria – as well as the pace of political and economic reforms, and human rights in the country.
In fact, Mr Baucus said he planned to introduce an amendment to the PNTR legislation called the “Magnitsky” bill – which is opposed by Russia – allowing the US to freeze assets and deny entry to Russian officials deemed responsible for human rights abuses.
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G8 absence threatens US-Russian rapport
When the G8 leaders gather at Camp David on Friday, one will be missing. Vladimir Putin, who was scheduled to have a post-summit meeting with Barack Obama, US president, sent his Dmitry Medvedev, prime minister, at the last minute instead.
The reason for his absence is still hotly debated in Moscow – almost no one believes the officially proffered reason that Mr Putin wants to stay in Moscow to interview prospective cabinet officials.
The cancellation casts a sudden pall over US-Russian relations, especially in the wake of Mr Putin’s aggressively anti-western campaign for the presidency, which he won on March 4. He barely let a public appearance go by without accusing the US of secretly plotting to overthrow him.
His absence seems to realise the worst predictions that the re-election of Mr Putin would mean the end of the tentative thaw in relations known as the “reset”, described in March by outgoing president Mr Medvedev as “the best three years in Russia-US relations in a decade”. Those may indeed now be over.
“The beginning of the Obama-Putin relationship doesn’t look optimistic,” said Sergei Rogov, director of the Institute for US and Canadian Studies in Moscow, who declined to guess at the reasons for Putin’s absence, underlining the extent to which even senior experts are puzzled by the Kremlin’s Byzantine ways.
Dmitri Trenin, director of the Carnegie Moscow Center, the think-tank, said: “The [US-Russia] relationship is certainly wrong-footed at this point.
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EU urges action over Russian lawyer’s death
By Catherine Belton in Moscow
Herman Van Rompuy, European Council president, has called on Dmitry Medvedev to bring to a “credible” close an investigation into the death in jail of Sergei Magnitsky, the anti-corruption lawyer, before his term as Russian president expires.
Calling the case “emblematic” for “the state of the rule of law and judiciary” in Russia, Mr Van Rompuy said in a letter, dated April 18, to the Russian president and seen by the Financial Times, that bringing the investigation to “credible and thorough conclusion before the end of your term would be of symbolic relevance and send a very important signal for the future of Russia”.
Mr Medvedev came to power pledging to crack down on corruption and to boost the independence of the courts. But critics say the lack of progress in investigating Magnitsky’s death is symbolic of the president’s inability to take his pledges beyond the level of rhetoric over his four-year term. Mr Medvedev is due on May 7 to hand over the presidency to Vladimir Putin, his mentor who as prime minister had continued to be seen as Russia’s paramount leader.
The official investigation into Magnitsky’s death is due to be completed on April 24, more than two years after he died in jail in November 2009, sparking an international outcry. His death came more than a year after he alleged that a circle of interior ministry and tax ministry officials had conspired to defraud the Russian budget through a $230m tax fraud scam.
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Tax scam points to complicity of top Russian officials
Two Moscow tax departments at the centre of a tax rebate scam worth hundreds of millions of dollars continued to disburse huge sums long after similar schemes were uncovered by Sergei Magnitsky, the whistle-blowing lawyer who died in jail after making his allegations.
Revelations that the tax rebate scams continued well after Magnitsky’s death raise questions about the level of official protection the fraudulent rebate operations enjoyed. In total, the fraud looks to have cost the Russian treasury more than $800m from 2006 to 2010.
Magnitsky was jailed on separate tax fraud charges in 2008 soon after he alleged a circle of interior and tax ministry officials had conspired to defraud the Russian government via a $230m rebate involving company seals and charters belonging to his former employer, Hermitage Capital, that were seized in a police raid. His death a year later – he would have turned 40 last Sunday – spurred international outrage, causing the US government to draw up a visa blacklist for officials involved in his detention.
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West needs to engage with ordinary Russians
Vladimir Putin, after a campaign dripping with anti-western vitriol, has won a presidential election that monitors and Russia’s newly-emboldened opposition say was deeply flawed. How should the west respond?
US and European Union leaders are already being criticised – including by Russian pro-democracy groups – for tepid criticism of the alleged voting fraud. One European parliamentarian has said there should be “no business as usual” with Mr Putin’s regime.
But many in Russian civil society and the intelligentsia say it is crucial for the west not to isolate Russia at the very moment that its middle-class political consciousness is flowering.
Doing so could provide cover for a Kremlin clampdown on the nascent opposition. It would make it harder, too, to counter official propaganda that the financial crisis and eurozone problems prove western-style market democracy is not a shining model for Russia.
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Russia’s Silicon Valley woos British investors
A delegation from Russia’s proposed ‘Silicon Valley’ development, Skolkovo, came to the UK this week in an effort to persuade UK businesses to invest in the high-tech hub being built on the outskirts of Moscow.
They faced awkward questions, however, about the political landscape that companies might face if they transferred operations to Russia. Denis MacShane, Labour MP for Rotherham, wrote to Lord Green, the trade minister, criticising the UK’s Department of Trade and Industry for hosting the conference, and pointing to the difficulties that many UK companies had faced in Russia.
“I believe the Government should add…an official health and safety warning so British businesses seeking to be involved in Russia do so with their eyes open to the risks they run,” Mr MacShane wrote.
He cited the case of Hermitage Capital, a hedge fund which was forced to leave Russia, and whose lawyer, Sergei Magnitsky, died in jail after uncovering an alleged $230m corruption scheme by high-level officials.
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