Posts Tagged ‘syria’

09
September 2013

What’s at stake for Russia in Syria

CNBC

The gridlock at the UN Security Council between the U.S.and Russia is dragging on, due to a gamut of competing interests in Syria.

The Russia-Syria axis is rooted in a strong political and economic relationship that has been cultivated since the late 1950s. The bond has a deep cultural element: many Syrians go to Russia to study, while Russians go to Syria as holidaymakers, advisors or investors. Over the years, Russia has also played an essential role in restructuring the Syrian economy, and wrote off roughly 70 percent of Syria’s $13.4 billion debt in 2005.

While reliable numbers are hard to come by, The Moscow Times estimated Russian investments in Syria at $19.4 billion in 2009, covering infrastructure, energy and tourism. But with outstanding projects ranging from a nuclear power plant to oil and gas exploration, the number today may be considerably higher.

Either way, Russia’s trade with Syria is fairly insubstantial. According to Daniel Treisman, professor of political science at the University of California, Los Angeles, Russian exports to Syria amounted to$1.93 billion in 2011, or only 0.4 percent of Russia’s total exports. That’s less than its trade with Tunisia and Estonia.

Still, what stands out is that Russia-Syria trade is concentrated in the defense and energy industries. “The vast majority of Russian exports to Syria are armaments, which makes Syria relatively more important as an export destination for the Russian defense industry,” Connolly said.

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13
July 2012

A chance to stand up to Putin

The Independent

In November 2009, the lawyer Sergei Magnitsky was beaten to death by guards after 358 days in “preventive custody” in Moscow. His offence had been to uncover a massive tax fraud scheme stretching high into the Russian government. The case became a cause célèbre, Exhibit A of the lawlessness and corruption that plagues the country’s business life.

Now, almost three years later, in a rare display of bipartisanship, the US Congress is moving to pass the Sergei Magnitsky Rule of Law Accountability Act, denying visas to Russians implicated in human rights abuses and freezing their financial assets. Congress is absolutely right to pursue such legislation. But it is essential it does so in the right way. What would be wrong would be – as some on Capitol Hill demand – to link the passage of the Magnitsky Bill directly to the repeal of the Jackson-Vanik amendment.

The latter is an obsolete vestige of the Cold War, dating from 1974 and imposing trade restrictions designed to force Moscow to accelerate the emigration of Soviet Jews. That problem no longer exists, and since 1990 Jackson-Vanik has been waived annually. It is time for it to go for good. Russia is about to join the World Trade Organisation. Not only will membership bind it further into a global system of rules and laws. If the US persists with Jackson-Vanik, it will itself be in violation of WTO rules. But to insist that Jackson-Vanik be replaced by the Magnitsky bill is the wrong course, playing into President Putin’s argument that Washington and the West are viscerally and irredeemably anti-Russian.

The Magnitsky Bill stands on its own merits. Yes, objections can be made. It is, by any standard, interference in the internal affairs of another country. Understandably, the Obama administration, anxious not to jeopardise Russian co-operation over international problems from Iran to Syria, is extremely wary of it. And who will decide which individuals are targeted – the State Department, or Congress? The measure could even prove counter-productive, further poisoning business practices in Russia as feuding factions and oligarchs seek to have each other placed on Washington’s blacklist.

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20
June 2012

USTR’s Kirk, Rep. Camp Call For Russia Trade Bill Without Human Rights

Wall Street Journal

Obama administration officials and a key House Republican Wednesday issued a similar message to Congress on the urgency of lifting trade restrictions on Russia, saying the bill should be passed quickly and without including human rights or other provisions.

However, the top Democrat on the House Ways and Means committee said the so-called “Magnitsky” bill punishing Russian human-rights violators should be included in any trade legislation, while arguing that the House should hold up on approving the bill until Russia takes steps to help contain the conflict in Syria.

U.S. Trade Representative Ron Kirk told the House panel that lawmakers should act by Aug. 22 or risk putting U.S. companies at a competitive disadvantage when Russia formally joins the World Trade Organization by that date.

“Our priority is for Congress to terminate the Cold-War era Jackson-Vanik amendment as it applies to Russia in a clean bill that enables us to maintain our competitive edge,” Mr. Kirk said in prepared remarks at the hearing. Repealing Jackson-Vanik, a 1974 measure that prevents the U.S. from granting most-favored-nation status to countries that restrict emigration, won’t be a “gift” to Russia, he insisted.

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