Posts Tagged ‘navalny’

18
November 2012

Russians Look Askance at Anticorruption Drive Even as New Scandals Arise

The New York Times

In the past, President Vladimir V. Putin has always been reluctant to expel or prosecute high-level officials, despite widespread complaints about corruption. So the mushrooming scandals are unusual, raising questions about what has changed.

There is little doubt that the Kremlin has been battered by opposition campaigns highlighting official corruption. Political strategists, searching for ideas powerful enough to consolidate the country around Mr. Putin, may seize on fighting corruption as a Kremlin effort, and recent steps hint at a populist push to expose and punish guilty officials.

“A tough, uncompromising battle with corruption has begun,” announced Arkady Mamontov, a pro-government television host, in a much-hyped documentary titled “Corruption” that, though it was broadcast close to midnight on Tuesday, attracted nearly 20 percent of the television audience. “In the course of the next months, we will see many interesting things. The main thing is that we should not stand aside and watch what is happening, but take an active part in it.”

Political observers have watched the anticorruption drive curiously, debating where it might be headed, and especially whether, for the first time since Mr. Putin came to power, high-ranking officials would face prosecution. On Monday, the newspaper Vedomosti declared that Moscow was witnessing the beginning of a “cleansing of the elite” — a flushing out of a political system that lacks other mechanisms of renewal, like competitive elections. Others were skeptical that the effort would reach beyond midlevel officials.

“It cannot become an overall ideology, because Putin’s system is dependent on corruption — on corruption as a form of management and a guarantee of loyalty from officials,” said Aleksei Navalny, a blogger and anticorruption activist. “They will not kick out from under themselves the stool that they are standing on.”

Last week, it seemed the Kremlin had not decided how far to take its anticorruption drive. On Wednesday, Russian news agencies reported that the highest-level official to be implicated — the former defense minister Anatoly E. Serdyukov — had been offered a comfortable new job as an adviser to the director of Rostekhnologii, a company that produces and exports high-tech equipment.

The news prompted waves of angry commentary from those who had hoped Mr. Serdyukov would be prosecuted, including Adm. Vladimir Komoyedov, who heads the Defense Committee in the lower house of Parliament.

“There is a signal in the navy that means ‘man overboard,’ ” he said. “We all thought the former minister had fallen overboard, and his fate would be sorrowful. But it turned out he was still inside the submarine.”

Others said it was more evidence that Mr. Putin does not give up his own. By way of commentary, the newspaper Kommersant posted a still from “The Godfather” in which the Mafia don embraced one of his lieutenants, along with a quotation: “Friendship is everything.”

Officials the next day denied that Mr. Serdyukov had been offered the job. Asked about the case at a news conference, Mr. Putin confirmed that, but said it would not be a problem if Mr. Serdyukov was given a new position, since he has not been formally accused of wrongdoing.

“There is a generally accepted practice that a person is innocent as long as a court has not proven his guilt,” he said. “If he wants to gain work anywhere, I don’t think that we should prevent that. He has the right to work.”

The Kremlin faces a dilemma in resolving Mr. Serdyukov’s case. Russians largely supported Mr. Serdyukov’s dismissal, and some speculated that the anticorruption effort was bolstering Mr. Putin’s approval ratings. The firing was particularly popular among prosperous urban males — a population that has turned away from Mr. Putin in recent years, and which he is no doubt eager to win back. But a prosecution would shine light on a deep and pervasive flaw of Mr. Putin’s system, with unpredictable consequences.

Mr. Navalny said he was “cautiously optimistic” that information about corruption had begun to emerge into public view, even if high-level officials were not punished.

As they broadened the investigation into the Defense Ministry, federal investigators have reopened an embezzlement investigation singling out a Moscow tax official close to Mr. Serdyukov, Vedomosti reported Wednesday, citing unnamed law enforcement officials.

The tax official, Olga Stepanova, was also at the center of a notorious case: the lawyer Sergei L. Magnitsky accused her of embezzling $230 million from the Russian Treasury by filing false corporate tax returns. Shortly thereafter, Mr. Magnitsky was detained on tax evasion charges. He died in pretrial detention in 2009, at the age of 37, and the authorities have consistently denied that Mr. Magnitsky’s allegations had any merit.

“Factually, this looks like an acknowledgment of relatively obvious things,” Mr. Navalny said. “I am happy that these facts are coming out, and that it will now be harder to escape from accusations, including ours.”

There will almost certainly be more corruption cases in the coming months. One especially eager official is the deputy prime minister, Dmitri O. Rogozin, who wrote on Twitter: “I will insist that corruption in defense procurement will be equivalent to treason! Have they lost their fear? We will find them!”

Sergei V. Stepashin, the chairman of the federal accounting chamber, Russia’s main auditing body, told the news service Interfax on Wednesday that a trillion rubles a year, or around $31.5 billion, is being siphoned from Russia’s budget in the course of state procurement — about one-fourteenth of the entire budget, he estimated.

Mr. Mamontov’s documentary sketched out one scheme that made this possible: go-betweens at the Defense Ministry, he said, would buy low-quality coal at rock-bottom prices, then resell it through shell companies back to the ministry at a tenfold markup.

He then swung his focus to one person suspected of being a culprit: Yevgeniya Vasilieva, a 33-year-old lawyer at the ministry who was shown in photographs carousing in a silver sequined dress. The camera lingered over Ms. Vasilieva’s 13-room, $10 million Moscow apartment and five boxes that held $3 million worth of jewelry.

After the show was broadcast, Igor Bunin, the director of the Center for Political Technologies in Moscow, said he believed fighting corruption would “become one of the elements of the regime’s ideology,” and that more films — and more prosecutions — were on the way.

“You need to understand that when you start such a battle with corruption, it touches the whole political class and, of course, leads to direct political consequences, a new political system,” Mr. Bunin said in an interview with the radio station Kommersant FM. микрозайм онлайн займы на карту без отказа https://zp-pdl.com/get-quick-online-payday-loan-now.php https://zp-pdl.com/get-a-next-business-day-payday-loan.php займ на карту

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29
October 2012

New Coordination Council Weighs Rally and Magnitsky

The Moscow Times

Members of the opposition’s newly elected Coordination Council agreed at their first meeting over the weekend to stage their next rally in December and press the U.S. to expand its Magnitsky list of banned Russian officials.

The opposition group, which met at a restaurant in central Moscow on Saturday, is tasked with trying to mount a structured challenge to President Vladimir Putin.

“They gave us the mandate of trust and made us responsible for coordinating efforts of dozens, hundreds, thousands and millions of people who want positive changes in our country,” said Alexei Navalny, the anti-corruption blogger who collected the most votes in the Oct. 20-22 online elections for the Coordination Council.

After some bickering, the new group of 45 leaders agreed to hold the next rally in December to mark the anniversary of the first anti-Putin protests after disputed State Duma elections.

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22
August 2012

Of Putin and Punks

Wall Street Journal

Vladimir Putin’s Kremlin has become expert at using the power of the courts to break opponents and crush political dissent. In the latest episode, the three young women of the “Pussy Riot” punk band were sentenced Friday to two years in prison for “hooliganism motivated by religious hatred.”

The women were arrested in March for performing an anti-Putin stunt inside the Christ the Savior Cathedral in Moscow, where they beseeched “Virgin Mary, drive away drive away Putin!” The clips went viral on YouTube, which is what really must have irked the Kremlin.

Following the method of Putin justice, the court barred much defense testimony, though it allowed prosecution witnesses who had not been at the cathedral. The judge on Friday took more than three hours to read the verdict, which included detailed descriptions of the shape of the defendants’ heads. According to the live-tweets of reporter Simon Shuster, the judge also noted their “mixed psychological disorders” that include “individualism, stubborn expression of opinions, unwillingness to cede positions.”

The proceedings were no less farcical than those that have kept oil tycoon and Putin opponent Mikhail Khodorkovsky behind bars since 2003. And the trial follows the recent indictment of Alexei Navalny, an anti-corruption blogger and lawyer, on charges of embezzling money from a state company. Mr. Navalny faces between five and 10 years in prison, though the charges against him were investigated and dropped twice by regional prosecutors. He has become a Putin target because his writings are a focal point for the growing protests against the authoritarian regime.

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01
August 2012

Arrest of Russian Opposition Leader Raises Tough Questions for Country’s Legal System

The AM Law Daily

Russian prosecutors charged anticorruption lawyer and blogger Alexei Navalny, one of President Vladimir Putin’s harshest critics, with embezzlement Tuesday in connection with a 2009 timber deal in which he participated as an unpaid adviser.

The criminal charges, which carry a five-to-10 year prison term, are the latest to be lodged against a vocal Kremlin critic and have some U.S. lawyers with Russian expertise skeptical about the country’s commitment to the rule of law.

“Russia is falling into a dictatorship and [Navalny’s] arrest is entirely political,” says Jamison Firestone, the cofounder and managing partner of Moscow-based law and accounting firm Firestone Duncan, who fled Moscow for London in 2010 after he discovered that someone was trying to obtain a $21.5 million fraudulent tax refund by forging his signature on client documents and the authorities refused to act. “At its best, the indictment says to Navalny that if you continue to open your mouth, you’re going to prison. At its worst, he’s already going to prison.”

The Investigative Committee of the Russian Federation—a body akin to the Federal Bureau of Investigation—filed the charges against Navalny under Article 160 of Russia’s criminal code, according to a press release outlining the allegations. Prosecutors claim Navalny embezzled roughly $500,000 from the regional government of Kirov, a province just west of the Ural Mountains, by participating in a scheme to steal timber from a state-owned company.

Navalny, who has publicly described the charges as “strange and absurd,” has been released by Russian authorities and agreed not to leave Moscow while his case is pending. Regional prosecutors in Russia previously investigated similar charges against Navalny before dropping the matter, according to news reports. But as a leading Putin and anticorruption crusader—Time once called Navalny “Russia’s Erin Brockovich” for taking on corporate greed—Navalny continued to draw the interest of those loyal to the government.

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26
July 2012

Russian Activist Accuses Chief Investigator of Secret European Holdings

New York Times

A Russian blogger and anticorruption activist who helped inspire street protests in Moscow last winter accused Russia’s chief federal investigator on Thursday of secretly owning real estate and other investments in Europe.

The allegation touched on the personal dealings of Aleksandr I. Bastrykin, a close aide to President Vladimir V. Putin and the director of the Investigative Committee, a high-level agency in the Russian government that coordinates criminal inquiries. It was apparently the most forceful retort yet by the opposition to a number of new laws strengthening the security services.

These laws, passed partly in response to the activism of the blogger, Aleksei A. Navalny, will be enforced by Mr. Bastrykin.

On his blog, Mr. Navalny provided documents indicating that Mr. Bastrykin has a residence permit and owns real estate in the Czech Republic.

Mr. Navalny wrote that the documents seemed to contradict Mr. Bastrykin’s denial of business interests abroad, which came in response to a parliamentary investigation in 2008.

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09
July 2012

From beyond the grave

The Economist

SINCE Sergei Magnitsky died in prison in Moscow on November 16th, 2009, his case has come to exemplify the abuse of power in Russia (or in the eyes of the Russian authorities, the hypocrisy and grandstanding of the West). Mr Magnitsky worked for a law firm called Firestone Duncan, which represented Bill Browder, a big foreign investor who had fallen foul of the Kremlin. Mr Magnitsky uncovered a scandal involving a $230m tax refund, obtained following the takeover and bankrupting of Mr Browder’s companies. A new video, part of Mr Browder’s unflagging campaign on the issue, contains the latest startling allegations about the background to the alleged fraud (those named have either made no public comment or strenously denied wrongdoing). He showed it on July 5th to the Parliamentary Assembly of the Organisation for Security and Cooperation in Europe, which is meeting in Monaco.

The opposition activist Alexei Navalny is also championing the Magnitsky cause. He wrote in the Times (full article behind paywall) that Britain should copy America, where both houses of Congress are supporting a bill that would deny entry to the 60 officials that Mr Browder says were involved in the persecution of Mr Magnitsky, or the fraud he uncovered.

In Putin’s Russia, where the Government is run more like an organised crime syndicate than a functioning state, no inquiries are made about politically reliable billionaires and how they make their money and run their businesses. Sleaze is the norm. But Britain has the rule of law, not to mention a moral, political and financial obligation to its citizens to block the import of corruption. For instance, its 2010 Bribery Act stipulated that the bribing of foreign officials, even if outside the UK, may be punishable by ten years in jail. Will any Russians bearing billions be investigated under this law?
But the Kremlin is fighting back. Mr Navalny’s email and twitter account have been hacked, exposing what purport to be embarrassing exchanges between him and his backers. His foes are calling for his prosecution. The head of the Federation Council, the upper house of Russia’s parliament, Valentina Matviyenko, called the Magnitsky bill “barbaric”. Russia is also pressing ahead with a posthumous prosecution of Mr Magnitsky for fraud and is also trying to prosecute Mr Browder for tax evasion (which he denies). It has asked the British authorities for assistance, but been turned down. It also wants to ban American officials involved in human rights abuses from visiting Russia, though this sanction may not have quite the same sting.

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09
July 2012

It matters where Russian money comes from; Oligarchs find it easy to settle in Britain. But more questions should be asked about them

The Times

A huge stream of money has flowed into Britain from the old Soviet Union since the end of Communism. The British public seems used to the fact that, from time to time, another flamboyant or publicity-shy oligarch whom nobody had previously heard of pops up on the radar as if descending from another planet.

All he has to do is buy a stake in a high-profile business or make a record-breaking bid on a house or country estate and a Russian billionaire or millionaire can easily break into elite British society.
Very little is required to establish oneself as a plutocrat in this country. Local banks apply meagre “know your client” procedures to vet applicants: a passport copy and a utility bill are all that is needed to open an account at any London-based private bank. Then, as if by magic, funds pour into the UK as clean capital, free from any taxation or further scrutiny. Getting the right to stay permanently in the UK with an investor visa is just as easy; all that is needed is a minimum of £2 million in personal assets.

Most rich Russians living in the UK have made their wealth honestly, but there is money sloshing around Britain tainted by corruption. Yet few new arrivals can expect to be challenged on where the money came from, or what they had to do back in Russia to acquire it.

Many in the British Establishment aren’t bothered by this laxness. After all, few Russian billionaires have so far parlayed their fortune into politics — particularly after the fuss caused when George Osborne and Peter Mandelson enjoyed the hospitality of Oleg Deripaska on his yacht off Corfu.
But you should be bothered. Evidence in the court case brought by Boris Berezovsky against Roman Abramovich gave us an insight into how those who amass (and lose) fortunes in Russia, however upright or law-abiding, have to do so against a backdrop of corruption and political interference. This case introduced British lawyers to krysha (the Russian for roof) — the protection money many businessmen pay to do business.

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20
June 2012

Opposition Figure Irks Russian Oil Czar

Wall Street Journal

President Vladimir Putin’s close ally who runs Russia’s state oil company Rosneft Wednesday accused a popular leader of opposition protests of acting to the company’s detriment by criticizing Russian officials and demanding access to the company’s secrets.

Igor Sechin, Rosneft’s chief executive, said blogger Alexei Navalny works on behalf of the company’s competitors and an investment fund, who are trying to have a peek into Rosneft’s confidential documents.

Mr. Navalny holds a infinitesimal stake in the firm and, as a shareholder, demands that internal documents, including minutes to board meetings, be published. He has also accused the company of misconduct, corruption and infringement on shareholders’ interests. Rosneft has defended the confidentiality of its documents in courts.

Mr. Navalny, a darling of the anti-Kremlin rallies that have been erupting in Moscow over the past few months, has been repeatedly detained by authorities. His apartment and his office were recently searched by the police, and state-controlled media refer to him as a Western stooge.

“According to some information, Navalny is a lawyer employed by Hermitage Capital,” said Mr. Sechin, the Rosneft chief, when asked at the company’s annual shareholders meeting who he thought was right in the dispute between the company and the blogger.

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14
June 2012

Optimism in diversity? Moscow’s March of Millions

Open Democracy

Despite a heavy riot police presence, a spirit of optimism and unity was tangible at Moscow’s ‘March of Millions’ yesterday, says Susanne Sternthal. The self-proclaimed ‘leaders’ of the opposition, on the other hand, were reduced to playing a secondary role.

I had not made it to the previous four large-scale Moscow demonstrations for one reason or another. But despite the tightening of the screws on opposition leaders and protestors by President Vladimir Putin’s government in advance of the planned ‘March of Millions,’ I was set on going.

Just days before the protest, Putin rushed to pass a bill sponsored by ruling party United Russia. This new law hikes the maximum fines for organizers of protests deemed illegal or unruly up to $32,000, and up to $9,000 or 200 hours of mandatory labor for participants. On the night before the protest, opposition leaders Aleksei Navalny, Sergei Udaltsov, Ksenia Sobchak and Ili Yashin had their apartments searched and had all their electronic devices confiscated. On the day of the demonstration, all four were called in for questioning regarding the May 6 demonstration, in which protestors allegedly started a brawl with security forces. Udaltsov nonetheless led his Left Front party at the demonstration, explaining that this was his primary responsibility. The others did not make it. These primitive intimidation tactics by the government, aimed at dissuading supporters from gathering, did not have the desired effect.

Riding up the escalator from the Pushkinskaya Metro station to the designated meeting place near Pushkin Square, I saw in front of me a young couple with a bohemian look and various piercings and knew I needed to follow them. But I soon learned that I could just as well have followed the four fashionably-dressed middle-aged women who stood behind me: ‘….Well, I just explained that I was going to the demonstration and could not make it to the dacha,’ I overheard one explaining. June 12 is a national holiday marking Russia’s independence from the Soviet Union and is attached to a long weekend.

‘The absence of a compelling, realistic and specific plan for change is something all the opposition groups have in common. This lack of common purpose and plan plays into the hands of the Russian government.’

Coming out onto the square before noon, I saw that a large crowd had already formed and were beginning to pass one by one through metal detectors, with purses and bags being inspected by police. Special police units, known by their acronym as OMON, towered nearby in riot gear, resembling extras from Star Wars. I was propelled toward the front, where everyone had stopped, and we were told to wait for everyone else to gather before the march could begin as officially sanctioned at 1:00PM.

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