Posts Tagged ‘kremlin’
Russian undressing
Investor Bill Browder pulls back the curtain on Putin’s culture of corruption.
The jacket note for Bill Browder’s Red Notice calls it “a real-life thriller about an American-born financier in the Wild East of Russia, the murder of his principled young attorney, and his dangerous mission to expose the people responsible in the Kremlin.”
The description is accurate as far as it goes. Browder’s lawyer, Sergei Magnitsky, uncovered a $230 million fraud perpetrated by Russian government officials against one of Browder’s companies in 2008. He was jailed after disclosing the fraud and subsequently killed while in prison. Browder, who as founder and CEO of Hermitage Capital Management had made and lost billions of dollars in Russia, has devoted himself since Magnitsky’s death to exposing corruption and human rights abuses in Russia. For his efforts, Browder now finds himself subject to extradition to Russia, where the government has convicted him in absentia of tax evasion and sentenced him to nine years in prison.
But that’s only part of the story. The first half of Red Notice traces Browder’s improbable journey from prep-school washout through college, business school, and a series of consulting and Wall Street jobs before becoming Russia’s largest foreign investor.
The son of left-leaning academics and grandson of Earl Browder—the labor organizer and head of the American Communist Party—Bill Browder rebelled by becoming a capitalist. He recounts his early training through a series of pitch-perfect descriptions of J.P. Morgan recruiters, Boston Consulting Group managers, Salomon traders, and dealmakers such as Robert Maxwell, Ron Burkle, and Edmond Safra.
Whether consulting for a Polish bus company, advising a Murmansk fishing fleet, or finding undervalued, newly privatized companies in Russia, Browder encounters real-life opportunities and absurdities that read better than fiction.
Read More →
Facebook
Twitter
Google Buzz
LinkedIn
del.icio.us
Google Bookmarks
Yahoo! Buzz
Tumblr
StumbleUpon
FriendFeed
NewsVine
Digg
Putin’s torturers: Blowing the whistle on government cronies who stole Russia’s riches
The riches of the former Soviet Union seemed an incredible opportunity for financiers such as Bill Browder, and so it proved when he moved to the ‘Wild East’ and found he needed bodyguards and armoured cars.
But it was when he crossed the henchmen of Russian president Vladimir Putin that the trouble really started, and Browder was thrown into a terrifying world of state-sanctioned criminality. He survived, but his loyal colleague, Sergei Magnitsky, was to suffer an horrific fate at the hands of the Kremlin’s goons, as Browder recalls in this gripping first extract of his extraordinary new book…
The terrifying message arrived on my voicemail shortly after midnight on November 14, 2009. It had been a trying day. My lawyer, Sergei Magnitsky, was being held in a hellish Russian prison on trumped-up tax-evasion charges, and he had endured another tortuous day in court.
Sergei was seriously ill with pancreatitis and gallstones, but the police were unsympathetic and had chained him to a radiator in a corridor at the court building. When he finally entered the courtroom itself, the judge treated him with equal contempt, dismissing every one of his complaints about the mistreatment he’d endured for months.
I was a world away in London, but I was desperately worried. Another Russian lawyer of mine, who was safe with me in the UK, had recently received a series of menacing texts. ‘What’s worse, prison or death?’ one said. Another was a quote from The Godfather: ‘History has taught us that you can kill anyone.’
I’d shared these with officers from Scotland Yard’s anti-terrorism unit, who traced the texts to an unregistered number in Russia. This was very disturbing. The only people with access to unregistered Russian numbers were the secret police, the FSB (Federal Security Service of the Russian Federation), who’d been after me for years. The FSB doesn’t just issue arrest warrants and extradition requests – it dispatches assassins.
But the message I received late that November night was worse than any that had come before. When I listened to that voicemail, I heard a man in the midst of a savage beating. He was screaming and pleading. The recording lasted two minutes and cut off mid-wail. I called everyone I knew. They were all OK. The only person I couldn’t call was Sergei…
Before all these problems in Russia, I was the founder and chief executive of Hermitage Capital Management, the largest investment advisory firm in the Russian stock market. I had left a safe job in the City of London and relocated to Moscow in 1996, when Russia was nicknamed the Wild East.
Read More →
- Facebook
- Twitter
- Google Buzz
- LinkedIn
- del.icio.us
- Google Bookmarks
- Yahoo! Buzz
- Tumblr
- StumbleUpon
- FriendFeed
- NewsVine
- Digg
Bill Browder: the Kremlin threatened to kill me
I’m due to meet Bill Browder at Mari Vanna, a favourite hangout for rich Russians in Knightsbridge. But when we get there the restaurant, with its rustic dacha-style Russian decor, leaves us both feeling slightly spooked. So we wander across the road to an anonymous sushi bar. Browder’s reluctance to avoid bumping into anyone with Kremlin connections is understandable. As he explains, matter-of-factly: “They [the Kremlin] threatened to kill me. It’s pretty straightforward.”
American-born Browder is one of Vladimir Putin’s most prominent critics. For over a decade he lived in Moscow and ran the most successful investment fund in Russia. Initially, he was a fan of Putin’s. But in 2005 he was deported from the country. A corrupt group of officials expropriated his fund, Hermitage Capital, and used it to make a fraudulent tax claim. They stole $230m (£153m).
Stuck in London, Browder hired a team to fight his case. The same Russian officials arrested his lawyer, Sergei Magnitsky, after Magnitsky uncovered the money trail and made a complaint. They put Magnitsky in jail and refused him medical treatment. (Magnitsky suffered from pancreatitis and gall stones.) After he had spent almost a year behind bars, guards beat him to death. He was 37 and married with two small boys.
The incident had a transforming effect on Browder. “If Magnitsky had not been my lawyer he would still be alive,” he says. He describes Magnitsky’s death as “absolutely heartbreaking”. “If he hadn’t taken on my case he’d still be enjoying his life, being a father, looking after his wife. A young man whom I was responsible for died in the most horrific way because he worked for me.”
Browder’s memoir, published next week, recounts how Magnitsky’s death changed him from entrepreneur to global human rights crusader. Its title is Red Notice: How I Became Putin’s No.1 Enemy; and it reads like a non-fiction version of a Mario Puzo thriller. There’s a ruthless crime syndicate, a mafia boss – for Michael Corleone read Putin – and a growing tally of bodies.
Ever since Magnitsky’s murder in 2009 Browder has waged an extraordinary campaign to bring the officials to justice. Not in a court of law – there’s no prospect of a trial inside Russia – but in the wider court of international public opinion.
After footslogging round Washington, Browder succeeded in persuading US Congress to pass a groundbreaking Sergei Magnitsky law. The 2012 legislation imposed visa bans on the bureaucrats implicated in Magnistky’s murder. It denied them access to US banks. Putin was furious. In 2013 a Russian judge sentenced Browder in absentia to nine years in jail, and, bizarrely, “convicted” the already-dead Magnitsky. The Kremlin sent a Red Notice warrant to Interpol demanding Browder’s extradition. Interpol refused, but Moscow is currently putting together a third extradition bid.
Read More →
- Facebook
- Twitter
- Google Buzz
- LinkedIn
- del.icio.us
- Google Bookmarks
- Yahoo! Buzz
- Tumblr
- StumbleUpon
- FriendFeed
- NewsVine
- Digg
One Man Against the Kremlin
William F. Browder has succeeded in making the Kremlin very angry, which is perhaps the best he could hope for after a remarkable three-year campaign to hold Russian government officials accountable for the wrongful death of Sergei L. Magnitsky, a 37-year-old lawyer, in a Moscow prison in 2009.
Luckily for Mr. Browder, when Russia’s leaders get really mad, they tend to spray the landscape with ammunition that often ends up hitting themselves in the feet, sometimes in the face.
From his London office, decorated with wall-to-wall framed newspaper articles about his case, Mr. Browder keeps turning each incoming attack into further proof that he is dealing with what he calls an evil, murderous, duplicitous and vengeful regime headed by President Vladimir V. Putin.
“What is the crux of the matter?” asked Mr. Browder, a U.S.-born British citizen, answering a question about the recent arrest warrant issued against him by a Moscow court.
“The crux is that in Russia, there is a kleptocracy run by Putin, and all the guys around him,” he said, warming to a familiar theme. “They’re not in their job for the execution of public service; their job is to steal money.”
On the face of it, the Browder vs. Russia match is uneven: One Man Against the Kremlin is almost a comic book title. In fact, it leveled out last December when the U.S. Congress, after heavy lobbying by Mr. Browder, adopted the so-called Magnitsky list, which imposes sanctions on 18 Russian officials alleged to have been complicit in the lawyer’s mistreatment. At that moment, Mr. Browder’s crusade turned into a major diplomatic onslaught, adding another issue to an already tense U.S.-Russia relationship.
Mr. Browder said that the Russian reaction, notably a ban on the adoption of Russian children by Americans, was aimed at Europe, where similar sanctions against Russian officials — visa bans and a freezing of assets — could hurt members of a governing elite who have chosen to shelter their assets, and in some cases their families, there.
Read More →
- Facebook
- Twitter
- Google Buzz
- LinkedIn
- del.icio.us
- Google Bookmarks
- Yahoo! Buzz
- Tumblr
- StumbleUpon
- FriendFeed
- NewsVine
- Digg
Lilia Shevtsova: A new way to contain Russia
Traditional methods of dealing with Putin’s Kremlin have stopped working, writes Lilia Shevtsova.
For a prime example of a state with a split personality, watch Russia. On one hand, President Vladimir Putin writes to US counterpart Barack Obama, expressing hopes that their “relationship will move ahead in various areas”. On the other, the Kremlin returns to the mantra of “unique Russian civilisation” and does its best to close the country to the west. Western observers may shrug, saying they’ve seen it all before. But actually, things have changed.
First, Mr Putin’s team no longer cares what the west thinks. Second, the Kremlin has switched from imitating democracy to deterring European values. Anyone who thinks this shift will not affect Russian foreign policy is wrong. It is already having an impact. Look at Kremlin defence spending and Moscow’s attempts to create a Eurasian Union from former Soviet states.
But what, asks the optimist, about the partnerships of state-controlled energy group Rosneft with ExxonMobil and BP? Mr Putin needs western business to prolong his petrostate but the fate of Shell and BP in Russia proves they are at the mercy of the Kremlin’s moods.
The Kremlin is offering new rules that sound like an ultimatum. Accept the concept of total state sovereignty, allowing any regime (Syria included) to treat its people as it sees fit. Co-operate on trade, investment and other areas of mutual interest. Do not obstruct our elite’s activities in your countries, which means forgetting about the Magnitsky act barring Russian officials accused of human rights violations from the US. Accept that we have a “sphere of interests”. And no lectures about democracy.
Read More →
- Facebook
- Twitter
- Google Buzz
- LinkedIn
- del.icio.us
- Google Bookmarks
- Yahoo! Buzz
- Tumblr
- StumbleUpon
- FriendFeed
- NewsVine
- Digg
Opposition leader accused of treachery for supporting Magnistky bill
The ruling United Russia party has accused opposition figure Mikhail Kasyanov of betraying Russia’s interests for his support of the Magnitsky List bill, recently approved by the US Congress.
In doing so, Kasyanov has “openly admitted that timeserving interests of certain American politicians are more important to him than interests of his own people,” stated senior United Russia’s member Sergey Neverov.
Kasyanov, a former prime minister during President Putin’s first term, is currently not a member of parliament.
The reaction of Russian society to this move should be “definitely negative,” as it may “lead to tensions in relations between the two powers,” Neverov underlined, as cited by Interfax. That will be bad for everyone, “except, apparently, those who deliberately play into the hands of provocateurs who are trying to dictate how Russia should live.”
Earlier, Kasyanov – a co-chairman of the Republican Party of People’s Freedom, also known as Parnas – welcomed the adoption of the so-called Magnitsky List. The bill imposes visa bans and asset freezes on Russian officials allegedly involved in the death of Russian anti-corruption lawyer Sergey Magnitsky and in other human rights abuses in the country. The 37-year-old died in a Moscow pre-trial detention center in November 2009.
Read More →
- Facebook
- Twitter
- Google Buzz
- LinkedIn
- del.icio.us
- Google Bookmarks
- Yahoo! Buzz
- Tumblr
- StumbleUpon
- FriendFeed
- NewsVine
- Digg
Kremlin Human Rights Watchdog’s New Master
By John K. Yi – May 5, 2012
The Council’s Final Meeting
In two days, Vladimir Putin will be inaugurated for this third term as the President of the Russian Federation. And with his reentry into the nation’s chief position, the issue of human rights and the development of civil society, a touted reform in the past four years under current President Medvedev, face an uncertain future.
Earlier this week President Medvedev’s held his final meeting with the Kremlin’s Council on the Development of Civil Society and Human Rights. With their terms expiring on Monday, the departing council members did not hold back their disappointment of the Council’s accomplishments and criticism of the Kremlin’s unwillingness to make true reform.
The Council Chairman Mikhail Fedotov opened the meeting by raising his concerns to the exiting President that the council, though it has helped passed a number of laws, has still a long way to go on issues of police and anti-corruption reform. He described the current government apparatus as “sufficiently bulky, archaic, and clumsy.” After the meeting in an interview with the press, Fedotov warned that if under President Putin the members of the Council were to be replaced by “generals” and “those who attack human rights,” he would have no interest in being part of such a Council.
Other prominent members of the Council made their own departing shots, when they announced that they would not be returning to their posts under the new administration.
Read More →
- Facebook
- Twitter
- Google Buzz
- LinkedIn
- del.icio.us
- Google Bookmarks
- Yahoo! Buzz
- Tumblr
- StumbleUpon
- FriendFeed
- NewsVine
- Digg
The world has changed
Events in North Africa have led to an upheaval in region’s seemingly stable condition. Until recently the internal problems of these countries had hardly attracted attention while externally they have served as more or less dependable partners of the USA and the European Union. Over the past few months the situation has changed dramatically. Thanks to the Libyan crisis the EU has faced a drop in oil supplies. The catastrophic earthquake and tsunami in Japan, meanwhile, has put paid to the already weak conviction that nuclear power could be safe within the EU. On top of this has come a sharp increase in the number of refugees fleeing the North African disturbances which only highlights the lack of an effective strategy within Europe for integrating those who arrived before.
Read More →
- Facebook
- Twitter
- Google Buzz
- LinkedIn
- del.icio.us
- Google Bookmarks
- Yahoo! Buzz
- Tumblr
- StumbleUpon
- FriendFeed
- NewsVine
- Digg
