Russia attacked over state corruption, death of Sergei Magnitsky

The Daily Telegraph

Russia’s attempts to present itself as a modernising force and a good place for business came under sharp attack in Davos after Bill Browder, the investor waging a campaign against state corruption, took the Deputy Prime Minister to task in a private session.

Russia has taken a leading role at this year’s annual meeting of the World Economic Forum in Davos, with President Dmitry Medvedev delivering the opening speech and an entire forum given over to “Russia’s Next Steps to Modernisation”.

However, attempts to drum up business interest in the country were dealt a blow at the forum by Mr Browder, the founder of Hermitage Capital Management who was once the largest foreign investor in Russia.

He demanded Deputy Prime Minister Igor Shuvalov answer questions about an alleged $230m state-orchestrated fraud that led to the death of his investigative lawyer Sergei Magnitsky.

Mr Magnitsky, working in Moscow for Mr Browder, uncovered evidence allegedly showing that criminal elements in the police and the judiciary worked hand-in-hand with the Russian mafia to steal $230m of taxes paid by Hermitage in 2006 from the state.

Mr Magnitsky was charged with tax avoidance by one of the police officers he had testified was implicated, jailed and died in custody a year later of medical complications while awaiting trial.

The case has become a national scandal, provoked a backlash from politicians in Europe and the US, and shaken investor confidence in Russia.

“The President of the country called for an investigation into the people who killed my lawyer,” Mr Browder told a panel chaired by Mr Shuvalov and a hall packed with Western executives.

“One year after the investigation, people who killed the lawyer have been promoted higher by state orders… My question to you, Igor, is what will prevent other investors to have the same experience after my experience in Russia,” he said at the discussion.

Mr Shuvalov responded: “We know this case very well… Twenty people were fired immediately… It was not a case which was forgotten the next day. Unfortunately, I don’t know the results of the investigation and the end of the case… The past is always very important, although not always positive, but we need to concentrate on the future.

“You have to acknowledge the country is changing for the better. If every year we can say that the rule of law is becoming better, not perfect but better, then I think I’m doing my job… We need to work together.”

Mr Browder contends that those fired from the jail system were not involved in either the alleged fraud or death. The police officers Mr Magnitsky identified have been promoted.

The episode was in contrast to more moderate comments from other delegates. Indra Nooyi, chief executive of PepsiCo, said: “The government is doing everything possible to encourage foreign investors.”

President Medvedev, in his opening address, said the country was stamping out corruption and enforcing the rule of law. “Major changes are taking place in public life. We are moving ahead in fighting corruption and modernising the judiciary,” he said. “We are still willing to receive friendly advice, but we don’t need lecturing.”

He proceeded to inform delegates that he wished to turn Moscow into a financial centre, reminding them that Russia “will not introduce any special taxes on the financial sector”. Russia is already developing a technology region, becoming known as Russia’s Silicon Valley. займ срочно без отказов и проверок займы без отказа https://zp-pdl.com/get-a-next-business-day-payday-loan.php www.zp-pdl.com buy viagra online