Sergei Magnitsky: His death in a
Russian prison, after implicating
top officials in a complex
scheme to defraud the government, is
widely regarded
as a murder-cover-up in the West. His case is now
a rallying cry for those
wanting to combat Russian corruption.
U.S. Magnitsky Act Likely to Trigger 'Harsh Backlash' from Kremlin (Kommersant, Russia)
“Remember, when Sberbank wanted to buy Opel, the deal was blocked not on the basis of law, but the negative reaction it evoked in Germany’s ruling circles, and - I think - this is the case in the U.S. as well. ... This situation creates an unpleasant paradox for the U.S.. On the one hand, it wants to allow Russia to join the WTO and repeal the Jackson-Vanik trade restrictions, which bolster American business interests in Russia. On the other hand, passage of the Magnitsky Act will worsen the political climate for those businesses.”
-- Alexei Pushkov,
head of the Duma Foreign Affairs Committee
Duma Foreign Affairs Committee Chairman Alexei Pushkov warns of a reaction that will 'harm U.S. businesses' if the U.S. Congress passes a law to punish Russia for what U.S. lawmakers consider a murder-cover-up of lawyer Sergei Magnitsky.
According to the Russian Foreign Ministry, if the U.S.
Congress approves the legislation, Moscow’s reaction will be ‘complex and
extremely harsh.’ Kommersant’s source in the Kremlin
elaborates that this probably means retaliatory measures, such as expanding the
list of Americans who cannot enter Russia. The head of the Duma
Foreign Affairs Committee, Alexei Pushkov, mentioned
other possibilities. According to him, the Act’s passage may significantly
complicate the operations of American businesses in Russia.
It was announced yesterday that the U.S. Senate Foreign
Affairs Committee will vote on the bill, known as the Justice for Sergei Magnitsky Act on June 19. The bill provides for visa
and economic sanctions against 60 Russian citizens who, according to
Washington, are implicated in the death of lawyer Sergei Magnitsky
during his incarceration.
[Editor’s Note: Sergei Magnitsky
was jailed in 2008 on charges of tax evasion and fraud after implicating top
officials in a complex scheme to defraud the Russian government. His colleagues
say the charges were fabricated by police investigators whom he had accused of
stealing $230 million from the state through fraudulent tax returns. The
Kremlin's own human rights council said in 2011 that he was probably beaten to
death.]
John Kerry, chairman of the Senate Foreign
Affairs Committee, intends to support the bill, which was passed by the House Foreign
Affairs Committee last week. This means that the bill may soon be submitted for
consideration by both houses of Congress, and if passed, be
sent to the president to sign. In exchange for passing the Magnitsky
Act, lawmakers are ready to repeal the Jackson-Vanik amendment, and “establish normal trade relations
with Russia.”
Moscow still hopes the Magnitsky
Act fails to pass. “If something that outrageous does happen, our reaction will
be complex, multifaceted, and extremely harsh,” says Deputy Foreign Minister Sergei Ryabkov.
According to him, the Kremlin could lash out with a “series of retaliatory negative
measures,” although he didn’t delve into specifics. “I do hope we don’t have to
do that,” he added.
An anonymous Kommersant
source in the Kremlin elaborated that the most likely response to the Act’s
passage will be an expansion of the list of “inadmissible” Americans. “We will take
steps to mirror the American measures. If they deny someone entry, so will we.
If they expand their list, so will we.”
Recall that in May 2011, the U.S. State Department quietly
introduced sanctions against eleven figures who now appear
on the Magnitsky list, denying them entry to the United
States. The Obama Administration hoped Congress would be satisfied with this
step and hence not insist on adopting the Magnetsky Act,
potentially jeopardizing U.S.-Russia relations. The hopeful calculation proved unjustified:
lawmakers stood their ground, and in response, the Kremlin imposed entry-visa
sanctions on eleven American citizens.
Posted
by Worldmeets.US
The head of the Duma Foreign Affairs
Committee, Alexei Pushkov, made clear that this time
Moscow may not limit its response to symmetrical measures. “The interests of
American business in Russia may be affected,” he said. “The government always
has the option of taking a more-or-less positive stance on any number of
investment projects.” According to Mr. Pushkov, this
need not involve new legislation. “It is simply a matter of attitude. Remember,
when Sberbank wanted to buy Opel, the deal was
blocked not on the basis of law, but the negative reaction it evoked in Germany’s
ruling circles, and - I think – this is the case in the U.S. as well,” Pushkov said.
Mr. Pushkov continued, “This
situation creates an unpleasant paradox for the United States. On the one hand,
it wants to allow Russia to join the World Trade Organization and repeal the
Jackson-Vanik trade restrictions, which bolster
American business interests in Russia. On the other hand, passage of the Magnitsky Act will worsen the political climate for those
businesses.”
[Editor’s Note: Repeal of the Jackson-Vanik amendment has been bundled together with the Justice for Sergei Magnitsky Act as a way to sweeten the Act for lawmakers
who worry that the Act will damage U.S. business interests].
Fyodor Lukyanov, editor in chief of the magazine Russian
in Global Affairs, does not believe key U.S. investment projects in Russia
are under threat. “Big deals, blessed by the highest-ranking officials, are on
a completely different scale. They are not likely to be affected,” he says.
American business representatives are not so sure. Members
of the largest business associations in the U.S. are actively lobbying Congress
to soften the language of the Act and reschedule the vote.
