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hearing
Russia's Alpine Assets: Money Laundering and Sanctions Evasion in Switzerland
Tuesday, July 18, 2023Switzerland has for years been a primary destination for Russian money laundering and, since the Russian invasion of Ukraine, a weak link in Western sanctions enforcement. This Helsinki Commission hearing examined Switzerland’s poor track record of rooting out dirty Russian money and examined potential paths forward for U.S. policymakers in persuading Switzerland to uphold its commitments to its democratic partners. Bill Browder, head of the Magnitsky Global Justice Campaign, outlined his own experiences with Swiss officials undermining investigations into the money laundering cases linked to Sergei Magnitsky’s discovery of over $230 million in tax fraud by Russian officials. Browder traced Swiss officials’ attempts to direct corruption by Russian money, stating that Switzerland “wants to be seen as doing something while in reality doing nothing” to continue profiting off of Russian assets. Since the Swiss legal and regulatory systems have both failed to show a commitment to effective oversight of Russian money, Browder asked commissioners and other government officials to consider targeted sanctions under the Magnitsky Act against Swiss officials involved in quashing the investigations in question, including the sitting Prosecutor General. Drew Sullivan, co-founder and publisher of the Organized Crime and Corruption Reporting Project (OCCRP), testified that Swiss financial regulators prioritize the interests of the Swiss banking sector over true oversight and legal compliance, emphasizing that a fair audit of Swiss banks would show what his organization estimates is over $400 billion in illegal money, much of which is linked to Russia. Mr. Sullivan urged U.S. and EU policymakers to exercise their regulatory jurisdiction over dollar- and euro-denominated accounts to force Swiss banks into compliance with stronger transparency regulations. He views severe pressure from other democratic governments as the only way to ensure more responsible Swiss financial regulation. Olena Tregub, secretary general of the Ukrainian civil society organization the Independent Defense Anti-Corruption Committee (NAKO), underlined Switzerland’s hypocritical narrative of neutrality given that Switzerland is the leading European country in terms of dual-use weapons components found in Russian arms. Additionally, Switzerland’s lax sanctions enforcement has allowed the country to become a safe haven for Russian money despite Switzerland nominally joining EU sanctions regimes against Russia. Tregub advocated for a U.S.-led multilateral working group, including Switzerland, to prevent the export of dual-use technologies to Russia as well as additional pressure on Switzerland to enforce European sanctions it has already agreed to. Commissioners thanked witnesses for bringing visibility to Switzerland’s need for improvement in these areas and questioned them on what the most effective U.S. responses would be, as well as how likely they think their proposed solutions are to be implemented.
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hearing
The Alarming Rise in Antisemitism and Its Threat to Democracy
Tuesday, December 13, 2022In response to a rise in antisemitism in the United States and abroad, the Helsinki Commission held a hearing on December 13, 2022, featuring experts on preventing and combatting it. Witnesses testified about current development and how best to respond, as well as reinforced the important role of multilateral cooperation. In an increasingly global world where antisemitism can spread rapidly online, witnesses stressed that every country has a responsibility to combat anti-Semitism, as it has serious implications for democracy. Opening the hearing, Helsinki Commission Chairman Sen. Ben Cardin (MD) expressed his alarm at the shocking rise of antisemitic speech and attacks in recent years in both the United States and Europe. Popular entertainers and public figures such as rapper and producer “Ye,” formerly Kanye West, have spread antisemitic tropes to their followers on social media or through public statements. Antisemitic disinformation and conspiracy theories proliferated in connection with the COVID-19 pandemic. He said that statements by public figures and online disinformation not only serve to normalize prejudice and discrimination, but they also can incite extremism and violent attacks. President Putin has even tried to justify Russia’s brutal invasion of Ukraine through perversely antisemitic statements claiming the invasion was an effort to “de-Nazify” the country, notwithstanding its Jewish president. He highlighted the destructive role of disinformation and the importance of educational programs, calling for a unified strategy to combat antisemitism across government and society: “We must speak out loudly and clearly against antisemitism when it occurs. As leaders, we must lead and fight against hate. We cannot allow antisemitism or any type of prejudice or intolerance to be normalized,” he said. Helsinki Commission Co-Chairman Rep. Steve Cohen (TN-09) raised questions about the cause of the recent increase in antisemitism. Ranking Member Rep. Joe Wilson (SC-02) condemned the rise of antisemitism around the world, highlighted the important work the U.S. Helsinki Commission and the OSCE have done to combat it, and called on countries to take more action: “... it is clear what I stated last week, that antisemitism cannot be tolerated in any situation or under any circumstances. I’m very concerned by the rise of antisemitic incidents over the past several years, both in the United States and Europe.” Rep. Ruben Gallego (AZ-03) expressed his disgust at the alarming rise of antisemitism in the United States and Europe, raising concerns about Holocaust denial and securing places of worship: “It seems that every day and every week there’s another bomb threat at a Jewish day school, another discovery of antisemitic graffiti spraypainted on a college campus, or, at its worst, a shooting at a synagogue.” Rep. Marc Veasey (TX -33) inquired about what Congress should do in response to the rapid acceleration of antisemitism and extremism online: “We know that century-old antisemitic tropes are being increasingly mainstreamed and normalized due, in part, to social media and the amplification of problematic individuals.” Senator Richard Blumenthal (CT), discussed how to improve hate-crime legislation as well as how to come to terms with the history of antisemitism in the United States: “One of the innovations that we included in hate-crimes legislation was to give judges the option in sentencing to require that the convicted defendant, the perpetrator, perform acts of community service that put him or her in direct – in direct contact with the community who was the victim of the hate crime." Senator Rosen (NV) described how she co-led a bipartisan and bicameral letter signed by 126 members of Congress calling on President Biden to develop a unified national strategy to monitor and combat antisemitism: “I’m proud to say, just last night [Dec. 12, 2022] the White House heeded our call, announcing the formation of an interagency task force to combat anti-Semitism and Islamophobia. And its first order of business is to develop a national strategy to combat anti-Semitism." She also outlined specific actions that the United States must pursue including addressing online antisemitism, allocating increased resources to provide physical security for Jewish institutions, educating students about the Holocaust and anti-Semitism, improving hate crimes data collection and reporting, and advancing a whole-of-government approach to combat this issue. Ambassador Deborah Lipstadt, U.S. Special Envoy to Monitor and Combat Antisemitism at the U.S. State Department reiterated the importance of international coalition building and multilateral institutions in coordinating responses to antisemitism. She highlighted that antisemitism is often inextricably linked to prejudice and violence against other groups and religions: “Antisemitism is not a niche issue. It’s not just about helping or protecting Jews. As you entitled this hearing, it’s also a danger to democracy. Jews are the canary in the coal mine. If something is – if anti-Semitism is manifesting itself, other hatreds cannot be far behind." She also mentioned positive international developments, specifically in the Middle East such as Abraham Accords, and described how countries are starting to rethink their attitudes about antisemitism. Rabbi Andrew Baker, Personal Representative of the OSCE Chairman-in-Office on Combating Antisemitism as well as Director of International Jewish Affairs at the American Jewish Committee (AJC), described the steps OSCE governments should take to better tackle this issue. He emphasized the importance of accurate data collection, securing Jewish community buildings, and expanding Holocaust education in Europe. He also described that preventing the spread of antisemitism online is perhaps the most difficult part of the problem to solve: “We are outnumbered and out-funded by the social media giants. Content monitors are no match for algorithms designed to push grievance as the basic business model.” Members brought several concerns and questions to witnesses about the source of the recent rise of antisemitism, the importance of Holocaust education, how best to allocate resources to secure religious and community spaces, the value of differentiatng among different types of hate crime, and how to halt the rapid spread of antisemitism online. For more information, please contact Janice Helwig, Senior Policy Advisor, at Janice.Helwig@mail.house.gov
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press release
Helsinki Commission Announces Briefing on US-Europe Coalition for Russia Sanctions
Monday, December 12, 2022WASHINGTON—At a virtual kickoff event on December 13, Co-Chairman Cohen and Ranking Member Wilson launched the US-Europe Coalition on Russia Sanctions. NO SAFE HAVEN Launching the US-Europe Coalition on Russia Sanctions Tuesday, December 13, 2022 8:30 a.m. EST Since February 24, 2022, Western countries have imposed sanctions against Russian officials, businessmen, and public figures who support Russian aggression against Ukraine by financial or political means. Personal sanctions have been effective in creating tension between Putin’s proponents and continuing to help Ukraine fight for its independence. The biggest issue of personal sanctions policy is desynchronization among the countries imposing them. For example, when the United States enacts sanctions against politicians, public officials, and businessmen who support Russia’s war, the European Union and the United Kingdom do not. A similar dysfunction occurs when the European Union and Great Britain enforce sanctions on individuals without equal participation from the United States. The unity of the West in imposing sanctions on those driving Russia’s brutal invasion of Ukraine is essential for Ukrainian victory. This public briefing will unite seven legislators from the United States, Ukraine, United Kingdom, Lithuania, Estonia, and Poland. The panelists will announce the creation of the US-Europe Coalition on Russia Sanctions, which will synchronize the sanctions policy between the European Union, Ukraine, and the USA. The following panelists are scheduled to participate: Representative Steve Cohen — Member of Congress, Co-Chairman of the Commission on Security and Cooperation in Europe, United States Ranking Member Rep. Joe Wilson — Member of Congress, Commissioner of the Commission on Security and Cooperation in Europe, United States Member of Parliament Oleksii Goncharenko — Chairman of the Ukrainian parliament caucuses "For free Caucasus" and "For democratic Belarus", Ukraine Member of Parliament Dr. Robert Seely, MBE — British Conservative Party politician who has served as the Member of Parliament (MP) for the Isle of Wight since June 2017. Member of Parliament Eerik Kross — head of the Estonian delegation in PACE, Estonia Member of the EU Parliament Petras Austrevicius — serves on the Committee on Foreign Affairs, Lithuania Member of the Sejm Arkadius Mularczyk — Secretary of State for European Affairs, Leader of the Polish delegation to the Council of Europe, Poland
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article
NATO Refocused, Europe Reinforced
Wednesday, August 10, 2022By Jessika Nebrat, Max Kampelman Fellow Following the escalation of Russia’s war against Ukraine, the North Atlantic Treaty Organization (NATO) is playing a role it has not filled in years. Forced to reconcentrate its attention to Europe’s defense, NATO allies are demonstrating persistent resolve in countering Moscow’s expansionist tendencies. In doing so, NATO returns to a core facet of its founding mission: the defense against Moscow’s militarism. While NATO represents just one facet of the Euro-Atlantic security infrastructure, it is perhaps the most robust organization bound by formal agreements, dedicated to peacekeeping, and capable of enforcement. Its mission to “guarantee the freedom and security of its members through political and military means” echoes the first dimension principles outlined by the Helsinki Final Act, and aligns NATO with the Organization for Security and Cooperation in Europe and the U.S. Helsinki Commission. In supporting each other’s work, these institutions mutually reinforce their shared values and bolster European security. History of NATO In the aftermath of the second World War, the United States, Canada, and several Western European nations sought to boost European economic reconstruction and protect themselves from Soviet domination. The 1947 Treaty of Dunkirk predated NATO in promoting Atlantic alliance and mutual assistance between France and the United Kingdom. The agreement was expanded in March 1948 as the Treaty of Brussels to engage Belgium, Luxembourg, and the Netherlands in military, economic, social, and cultural cooperation. In the same month, the United States hosted talks intended to unite both North American and Western European allies; as a result, NATO was officially signed into existence on April 4, 1949. The 12 founding member nations derived their legitimacy from United Nations (UN) Charter Article 51, which affirmed the right to collective defense. The foundational NATO Treaty mentioned collective defense only after declaring the parties’ commitments to finding peaceful resolutions of disputes, upholding UN principles, strengthening free institutions, and promoting economic collaboration. The Alliance formally defined its principal objectives to deter Soviet expansionism, oppose nationalist militarism on the continent, and bolster European political integration. Though it sought to deter military aggression, NATO’s original treaty did not provide any means of enforcing the agreed-upon principles. It was not until after the USSR’s 1949 detonation of an atomic bomb and the 1950 start of the Korean War that NATO approved a military command structure. In response, the Soviet Union established the Warsaw Pact in 1955. Though neither of the two ideologically opposed organizations used force during the Cold War, they engaged in an arms race that persisted until the Soviet Union dissolved in 1991. NATO after the Cold War Once NATO no longer had to defend against Soviet expansionism, the Alliance broadened the scope of its peacekeeping and security enforcement missions. In the 1990s, NATO forces were deployed: to Turkey during the Gulf Crisis; upon request to Russia and other Commonwealth of Independent States nations as part of a humanitarian mission after the fall of the USSR; to enforce a UN arms embargo and no-fly zone over former Yugoslavia; and in the Central Mediterranean during a period of tension with Libya. In the 21st century, NATO forces were also deployed during: the Second Gulf War; to the US and Afghanistan in the aftermath of the September 11, 2001 terrorist attacks, the only Article 5 invocation in NATO history; to mitigate rising ethnic tensions in North Macedonia; to counter terrorist activity in the Mediterranean; as counter-piracy escorts to UN World Food Programme ships transiting the Gulf of Aden; to train Iraqi security forces; to enforce a no-fly zone after the popular uprising in Libya; for peacekeeping in Sudan; and to provide disaster relief throughout Europe, the Middle East, and in the United States. NATO currently maintains active operations in Kosovo, the Mediterranean, Iraq, and throughout the African Union; it recently ramped up air policing as part of a peace-keeping response to the Russian Federation’s illegal annexation of Crimea in 2014, and the escalation against Ukraine this past February. Kremlin Narrative against NATO Over the years, Moscow has repeatedly resisted NATO enlargement – especially for countries it claims within its sphere of influence. Putin asserts that during a 1990 summit between President George H. W. Bush and President Gorbachev, the United States promised no further expansion of NATO; civil servants present at that meeting have refuted this claim, as has Mr. Gorbachev himself. In his conversation with Bush, Gorbachev repeatedly affirmed that nations have the right to make their own alliances. Though internal U.S. analyses of the 1990s suggested that expansion eastward may not be politically expedient, such positions never became official policy. The United States has remained resolute in its recognition of sovereign choice, and expansion has been driven by requests from former Soviet and Warsaw Pact states wary of Russian revanchism. The Kremlin has deployed an opposing narrative to justify Russian military engagements in Georgia in the early 2000s, and more recently in Ukraine. Putin sees the inclusion of either nation in NATO, and the political and economic liberalization that go with it, as threats to his regime’s stability. NATO membership would limit Russian interference in the internal affairs of either state. Additionally, if Russia’s neighbors and fellow post-Soviet states can become true democracies, provide higher quality of living, and ensure the rule of law, then why can’t Putin’s Russia? Any argument that NATO expansion threatens Russia misrepresents the organization, which is a diverse coalition dedicated to mutual defense and development. Moreover, such an assertion overlooks the efforts NATO has made to include and collaborate with Russia in the pursuit of cooperative security. NATO Back to its Roots By illegally and brutally invading Ukraine in February 2022 – a dramatic escalation of the grinding conflict started in 2014 – Putin has galvanized European and Western unity. Hearkening to its origins and returning attention to Eastern Europe, NATO is recommitting itself to “counter Russia’s attempts to destroy the foundations of international security and stability.” The international community is largely on board. In its collective attention beyond security, NATO – alongside other organizations – highlights not only the potential for, but the responsibility of the international community to condemn human rights violations, uphold the rule of law, and pursue economic health, all efforts that further challenge the Kremlin’s narrative that it can lead (or that there even needs to exist) an opposing bloc. Alarmed by Moscow’s renewed expansionism, Sweden and Finland have abandoned decades of neutrality in favor of NATO membership. They are on track towards the fastest accession process in history, and anticipate a smooth integration. Both already engage in the wider European community through membership in such organizations as the European Union and the Organization for Security and Cooperation in Europe. Their force structures are robust, and well-versed in NATO procedures following decades of partnership; their accession will secure northeast Europe, expand NATO’s border with Russia, and reinforce NATO presence in the Arctic and Baltic Sea. Although the Kremlin initially vowed “military and political repercussions” were Finland and Sweden to join NATO, such threats have dulled to warnings about the installation of NATO military infrastructure nearer Russia’s borders; as Finland and Sweden’s NATO membership neared finalization, Putin even expressed “no problem” with these states joining the Alliance. It remains to be seen how this change will play out. After decades of orientation towards international stabilization, humanitarian, and counterinsurgency mission sets, NATO has been refocused on European deterrence and defense following the Kremlin’s violent assault on Ukraine. In addition to condemning Russia’s invasion and supporting Ukraine via such measures as the Comprehensive Assistance Package, NATO plays a critical role in championing European collective defense and discouraging any expansion of conflict.
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press release
Helsinki Commission Delegation Convenes Historic Black Sea Security Summit, Demonstrates Bipartisan Support for European Security
Thursday, July 14, 2022WASHINGTON—From June 29 – July 9, Helsinki Commission Ranking Member Sen. Roger Wicker (MS) led a bipartisan, bicameral congressional delegation to Romania, the United Kingdom, Finland, and Sweden to consult with senior officials across Europe about Russia’s war on Ukraine, security in the Black Sea region, and Finland and Sweden’s plans to join NATO. On the shores of the Black Sea in Constanta, Romania, Sen. Wicker and Romanian Foreign Minister Bogdan Aurescu co-chaired the first-ever congressionally-organized Black Sea Security Summit to underscore the critical importance of the Black Sea region to European peace and security, and to establish a sustainable, collective approach to ending Russian aggression and enhancing mutual cooperation. “Given Russia’s monstrous war on Ukraine and its wider aggression in the region, it is not an exaggeration to say that the Black Sea is currently the epicenter of Euro-Atlantic security and global peace,” said Sen. Wicker. “Ukraine must be successful in this war…Vladimir Putin’s unprovoked aggression against a neighbor cannot stand.” “Over the last 25 years, a key objective of our bilateral strategic partnership has been to act as partners in enhancing our joint security and promoting the democratic and economic development of the Black Sea region. The continuation of common decisive action in this regard at the bilateral and multilateral level is more relevant than ever,” said Minister Aurescu. “All along the Black Sea coast lies the first line of defense for the Euro-Atlantic community and the first line of support for our partners in Ukraine, the Republic of Moldova, and Georgia.” Prior to the summit, members of the Congressional delegation visited Romania’s Mihail Kogălniceanu Air Base, where they received briefings from U.S., Romanian, and other NATO personnel and met with American troops. Delegation members then traveled to Birmingham, UK, for the Annual Session of the OSCE Parliamentary Assembly (PA). Co-Chairman Rep. Steve Cohen (TN-09) was Head of the U.S. Delegation to the PA and spearheaded U.S. efforts to forge a strong, unified response from international legislators to Russia’s ongoing war of aggression against Ukraine and its people. “All OSCE parliamentarians must stand in solidarity with our Ukrainian colleagues as they battle the Kremlin’s vicious, intolerable war on Ukraine,” said Co-Chairman Cohen. “We must do all in our power—through this forum and all others—to ensure that Ukraine is victorious against Russian aggression.” During the Annual Session, parliamentarians overwhelmingly approved a resolution introduced jointly by Sen. Wicker and the heads of the Ukrainian and Lithuanian delegations, responding to Russia’s war on the Ukrainian people and the greater Russian threat to European security. The document “condemns resolutely and unequivocally the ongoing, intensified, clear, gross and still uncorrected violations of Helsinki Principles as well as of fundamental principles of international law by the Government of the Russian Federation in its war of aggression against Ukraine, as well as the complicity of Belarus in this war of aggression, and calls on the governments of OSCE participating States to do the same.” Several members of the U.S. Delegation successfully introduced more than two dozen amendments, designed to keep the focus on Russia’s current aggression, to an array of other resolutions. In Birmingham, the delegation also co-hosted an event highlighting the growing problem of political repression in Russia and Belarus, especially in the context of protesting the war on Ukraine; met with Mikhail Khodorkovsky to discuss his organization’s work to support political prisoners and democracy in Russia; and held bilateral meetings with the UK’s parliamentary leadership, OSCE officials, parliamentarians from other OSCE countries. Helsinki Commissioner Rep. Richard Hudson (NC-08) was re-elected to his post as chair of the OSCE PA’s Committee on Political Affairs and Security. Following the Annual Session, the congressional delegation stopped in Finland and Sweden to welcome the historic decision of both countries to join the NATO Alliance. In Finland, members met with President Sauli Niinistö, and Finnish parliamentarians including First Deputy Speaker Antti Rinne and OSCE PA Vice President Pia Kauma. In Sweden, they met with Foreign Minister Ann Linde, Deputy Defense Minister Jan Olof-Lin, and a group of members of the Swedish parliament, led by Speaker Andreas Norlén and OSCE PA President Margareta Cederfelt. In addition to Co-Chairman Cohen, Sen. Wicker, and Rep. Hudson, the Congressional delegation included Helsinki Commission Ranking Member Rep. Joe Wilson (SC-02), Commissioners Rep. Robert Aderholt (AL-04), Rep. Ruben Gallego (AZ-07), and Rep. Marc Veasey (TX-33), as well as Sen. John Cornyn (TX), Rep. Lloyd Doggett (TX-35), Rep. John Garamendi (CA-03), Rep. Sheila Jackson Lee (TX-18), Rep. August Pfluger (TX-11) and Rep. Chris Smith (NJ-04).
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briefing
Shoulder to Shoulder
Thursday, July 14, 2022Helsinki Commission Co-Chairman Rep. Steve Cohen and Ranking Member Rep. Joe Wilson joined former U.S. Army Staff Sergeant James Vasquez and Lt. Colonel Ripley “Rip” Rawlings (USMC, Ret.) to discuss U.S. volunteers fighting for Ukraine. Mr. Vasquez is a volunteer soldier fighting in Ukraine who partnered with Lt. Col. Rawlings to provide on-the-ground support through an organization called Ripley’s Heroes. At the beginning of Russia’s unprovoked and brutal invasion of Ukraine, Mr. Vasquez decided to travel to Ukraine and fight alongside Ukrainians. For three months, Vasquez armed and trained Ukrainian soldiers to “fight like gentlemen.” Vasquez noted that Ukrainians are “warriors in spirit and in heart,” but require training and supplies to be most effective. After fighting alongside Ukrainians, Vasquez developed a comradery with his unit, and is returning to Ukraine this month to deliver more supplies and continue fighting. Lt. Col. Rawlings met Vasquez in Ukraine in the early weeks of war and the two decided to launch Ripley’s Heroes, an organization providing essential military support to Ukrainian soldiers. Ripley’s Heroes has Ukrainian partners on the ground, including the Kiev-based NGO Come Back Alive, who help ensure that soldiers receive necessary supplies as quickly as possible. When asked by Rep. Cohen what the United States should do moving forward to support a Ukrainian victory, Lt. Col. Rawlings noted that a key obstacle to providing Ukrainians with warfighting supplies are U.S. commercial regulations on the export of military equipment, such as International Traffic in Arms Regulations (ITAR). According to Lt. Col. Rawlings, rather than simply keeping U.S. military technology out of the hands of nefarious actors, ITAR prevents private U.S. citizens from supporting the war effort by providing simple, effective, non-lethal equipment, like night-vision goggles. Mr. Vasquez agreed that changing U.S. laws to remove the regulations that prevent private citizens from helping Ukraine could help them win the war.
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press release
Helsinki Commission Briefing to Highlight U.S. Volunteers Fighting for Ukraine
Tuesday, July 12, 2022WASHINGTON—The Commission on Security and Cooperation in Europe, also known as the Helsinki Commission, today announced the following online briefing: SHOULDER TO SHOULDER On the Front Lines with the Ukrainian Military’s Foreign Soldiers Thursday, July 14, 2022 2:00 p.m. Register: https://ushr.webex.com/ushr/j.php?RGID=r6604c3bdc74d6eb2ff6c8bfa86784358 In Russia’s war on Ukraine, an unprovoked attack, unspeakable atrocities, and genocidal intent is juxtaposed against a valiant defense of hearth and home, a spirit of national unity, and grassroots mobilization. Not since the 1930s has a foreign war between a larger aggressor and a smaller but tenacious underdog so captivated the imagination of freedom-loving people. Answering the call of conscience, many American combat veterans are now fighting alongside Ukrainian servicemembers, applying their experience in combined arms maneuver and decentralized command to help Ukraine win the war. This briefing will examine the war in Ukraine through the eyes of two American volunteers: former U.S. Army staff sergeant James Vasquez and Lt. Colonel Rip Rawlings (USMC, Ret.). Vasquez fought in Ukraine in the early days of Russia’s full-scale invasion and soon plans to return to the battlefield. Rawlings is providing logistical support to the Ukrainian military through Ripley’s Heroes, a foundation he co-founded with Vasquez.
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hearing
Black Sea Security Summit
Friday, July 01, 2022On the heels of the 2022 NATO Summit in Madrid, on July 1 the Commission on Security and Cooperation in Europe, also known as the Helsinki Commission, convened its first-ever multilateral dialogue among key regional allies and partners on Black Sea security. At this historic event on the shores of the Black Sea, members of the U.S. Congress, senior-level government officials from the region, and key international partners came together in a roundtable format to underscore the critical importance of the Black Sea region to European peace and security, and to establish a sustainable, collective approach to ending Russian aggression and enhancing mutual cooperation. Co-chaired by Helsinki Commission Ranking Member Sen. Roger Wicker (MS) and Minister Bogdan Aurescu, Minister of Foreign Affairs of Romania, the summit featured a timely and collaborative exchange exploring major themes pertaining to regional security challenges: confronting Russian aggression and the relevance of the Black Sea to Euro-Atlantic security. The co-chairs were joined by senior-level regional government officials and a bipartisan delegation of members of both the U.S. Senate and the U.S. House of Representatives, including Sen. John Cornyn, Rep. Joe Wilson, Rep. Richard Hudson, Rep. Ruben Gallego, Rep. John Garamendi, Rep. Robert Aderholt, and Rep. August Pfluger. Other participants included: Romania Minister Bogdan Aurescu, Minister of Foreign Affairs of Romania State Secretary Simona Cojocaru, State Secretary and Chief of the Department for Defense Policy, Planning and International Relations, Ministry of Defense of Romania MP Pavel Popsescu, Member of the Romanian Parliament; Chair, Defense Committee MP Ana Cătăuță, Member of the Romanian Parliament Ukraine Deputy Minister Oleksandr Polishchuk, Deputy Minister of Defense of Ukraine MP Alexander Goncharenko, Member of the Ukrainian Parliament Bulgaria Deputy Minister Yordan Bozhilov, Deputy Minister of Defense of Bulgaria Ambassador Radko Vlaykov, Ambassador of Bulgaria to Romania MP Kaloyan Ikonomov, Member of the Bulgarian Parliament; Chair, Bulgaria – USA Friendship Group Georgia First Deputy Minister Lasha Darsalia, First Deputy Minister of Foreign Affairs of Georgia Ambassador Nikoloz Nikolozishvili, Ambassador of Georgia to Romania Turkey Ambassador Füsun Aramaz, Ambassador of Turkey to Romania NATO Deputy Secretary General Mircea Geoană, Deputy Secretary General of NATO U.S. European Command Major General Jessica Meyeraan (USAF), Director of Exercises and Assessments, U.S. European Command Relevance of the Black Sea to Euro-Atlantic Security During the summit, participants underscored the importance of security in the Black Sea littoral in the face of Russian aggression. Deputy Secretary General of NATO, General Mircea Geoanӑ, emphasized the importance of the Black Sea to Euro-Atlantic security, stating that the region reflects “broader competition between revisionist and brutal and aggressive Russia and our democratic world.” According to General Geoanӑ, NATO is committed to supporting Ukraine through military, financial, and humanitarian means and providing security in the Black Sea littoral that reestablishes freedom of movement, shipping, and navigation. Bulgarian Deputy Minister of Defense, Yordan Bozhilov noted that the Russian invasion of Ukraine “has far-reaching destabilization implications at the regional level and beyond,” including the resulting energy and food crises. Georgian First Deputy Minister of Foreign Affairs, Lasha Darsalia, emphasized the political, economic, and security importance of the Black Sea region to Georgia and highlighted increased security in the region as an opportunity to increase “international cooperation and connectivity.” He recalled Georgia’s support for Ukraine in the face of Russian aggression, characterizing the invasion of Ukraine as another step in Russia’s malign attempt to control the Black Sea region. U.S. Representative August Pfluger stressed the importance of the Black Sea region to energy security in the pursuit of decreasing dependence on Russian energy. Confronting Russian Aggression Throughout the summit, participants called for increased unity to confront Russian aggression. Ukrainian Member of Parliament, Alexander Goncharenko, requested a stronger NATO and US presence in Ukraine, after powerfully highlighting Ukrainian bravery in the face of Russian hostility. In reference to Russia’s weaponization of Ukrainian grain supply and the expansion of NATO, Gonchareko stated, “It is very good that the free world is finally uniting, but we must show strength. The first place we must show strength is in the Black Sea, as a humanitarian mission, to save millions of people. Thousands are killed in Ukraine, but millions will die from starvation.” Turkish Ambassador to Romania Füsun Aramaz underscored her country’s support of Ukrainian sovereignty. She acknowledged the common security goals of all participants at the summit and desires close alignment with NATO, but warned against over-militarization of the region, citing a potential to violate the Montreux Convention. “More vessels at sea or more fighter aircraft in the air alone do not mean more deterrence or stronger defense,” she stated. U.S. Major General Jessica Meyeraan of the United States European Command explained that the United States is supporting Ukraine by increasing understanding of Ukrainian security assistance requirements and “collaborating across over 40 nations to understand how we can quickly and effectively satisfy those security cooperation requirements.” Minister Aurescu explained that the projects that maintain regional security structures are the result of bilateral relationships between the United States and various littoral states and are essential in the face of Russian aggression and illiberalism that has resulted in regional and global crises. He also called to “increase the scale and visibility of the U.S. presence in the region,” beyond just a military presence through the creation of a multifaceted strategy based on strategic resilience. Rep. Hudson noted that “NATO stands ready” in the face of increasing threats in the region. In addition, Rep. Gallego emphasized the importance of deterrence by denial, clarifying that this sort of offensive is only possible through a completely integrated defensive approach.
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press release
Helsinki Commission to Convene Black Sea Security Summit in Constanta, Romania
Monday, June 27, 2022WASHINGTON—On the heels of the 2022 NATO Summit in Madrid, on July 1 the Commission on Security and Cooperation in Europe, also known as the Helsinki Commission, will convene its first-ever multilateral dialogue among key regional allies and partners on Black Sea security. At this historic event on the shores of the Black Sea, members of the U.S. Congress, senior-level government officials from the region, and key international partners will come together in a roundtable format to underscore the critical importance of the Black Sea region to European peace and security, and to establish a sustainable, collective approach to ending Russian aggression and enhancing mutual cooperation. BLACK SEA SECURITY SUMMIT A Roundtable Dialogue Hosted by the Commission on Security and Cooperation in Europe Friday, July 1, 2022 1:00 p.m. (UTC+3) Constanța Art Museum Constanța, Romania Watch Live: https://youtu.be/DZskl6-k6No The Black Sea Security Summit plenary will feature a timely and collaborative exchange across two sessions exploring major themes pertaining to regional security challenges: Session 1: Confronting Russian Aggression Session 2: Relevance of the Black Sea to Euro-Atlantic Security The Black Sea Security Summit will be chaired by Helsinki Commission Ranking Member Sen. Roger Wicker (MS), who will be joined by a bipartisan delegation of members of both the U.S. Senate and the U.S. House of Representatives. Regional participants include: Minister Bogdan Aurescu, Minister of Foreign Affairs of Romania State Secretary Simona Cojocaru, State Secretary and Chief of the Department for Defense Policy, Planning and International Relations, Ministry of Defense of Romania Minister Oleksii Reznikov, Minister of Defense of Ukraine First Deputy Minister Lasha Darsalia, First Deputy Minister of Foreign Affairs of Georgia Deputy Minister Yordan Bozhilov, Deputy Minister of Defense of Bulgaria Ambassador Füsun Aramaz, Ambassador of Turkey to Romania Ambassador Radko Vlaykov, Ambassador of Bulgaria to Romania MP Alexander Goncharenko, Member of the Ukrainian Parliament MP Kaloyan Ikonomov, Member of the Bulgarian Parliament; Chair, Bulgaria – USA Friendship Group Deputy Secretary General Mircea Geoană, Deputy Secretary General of NATO Major General Jessica Meyeraan (USAF), Director of Exercises and Assessments, U.S. European Command Members of the media must email stuparsa@state.gov in advance to attend this event. Preregistration closes Thursday, June 30, at 12:00 p.m. (UTC+3).
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publication
The Helsinki Process: An Overview
Friday, June 24, 2022In August 1975, the heads of state or government of 35 countries – the Soviet Union and all of Europe except Albania, plus the United States and Canada – held a historic summit in Helsinki, Finland, where they signed the Final Act of the Conference on Security and Cooperation in Europe. This document is known as the Helsinki Final Act or the Helsinki Accords. The Conference, known as the CSCE, continued with follow-up meetings and is today institutionalized as the Organization for Security and Cooperation in Europe, or OSCE, based in Vienna, Austria. Learn more about the signature of the Helsinki Final Act; the role that the Conference on Security and Cooperation in Europe played during the Cold War; how the Helsinki Process successfully adapted to the post-Cold War environment of the 1990s; and how today's OSCE can and does contribute to regional security, now and in the future.
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hearing
European Energy Security Post-Russia
Tuesday, June 07, 2022Russia is weaponizing energy to prolong its unlawful invasion of Ukraine. Unfortunately, the sanctions that Europe and the United States have put in place have not been enough to curb Russian aggression thus far and the European Union pays Russia almost a billion euros a day for energy resources—mostly gas— that fund the Russian war machine. Germany, in particular, has struggled to move away from its dependence on Russian gas. At the start of the Russian invasion of Ukraine, Germany imported 55 percent of its gas from Russia. As of June 2022, Russian gas imports had decreased to 35 percent, with a goal to decrease to 10 percent by 2024, but progress is slow and buying any energy from Russia means that Germany continues to fund their unlawful invasion. Dr. Benjamin Schmitt, Research Associate at Harvard University and Senior Fellow at the Center for European Policy Analysis, pointed to the resurgence of Ostpolitik, a German diplomatic theory which seeks to build relationships and spread good governance through trade. First introduced in the Cold War era, Ostpolitik was put into action once more in the early 2000s by former Chancellor Gerhard Schroeder, who became infamous for lobbying for Kremlin-backed projects in office and for sitting on the board of the Russian state-owned energy company, Gazprom, after leaving office. However, Russia attempted to leverage such projects, including the Nord Stream 1 project and its ultimately bankrupted predecessor, Nord Stream 2, to increase the vulnerability of Western Europe toward Russia. According to Dr. Constanze Stelzenmüller, Senior Fellow at Brookings Institution, domestic political will exists in Germany to diversify energy sources, even if most are wary of making those changes immediately. German polling shows that one-third of Germans are willing to cut off Russian gas immediately, while two-thirds would prefer a slow gradual decrease in gas. Dr. Stelzenmüller explained that if Germany were to immediately cut off Russian gas supplies, it is likely that a recession would affect not only Germany, but also many surrounding Eastern European countries, most of which have less capacity to manage a recession. She stated, “Much of [Germany’s] manufacturing supply chains go deep into Eastern Europe. So, a recession in Germany would absolutely produce a massive, and perhaps worse, recession in our neighboring economies.” Any actions taken against Russia should ensure that sanctions hit Russia harder than those countries imposing the sanctions. Mr. Yuriy Vitrenko, CEO of Naftogaz Ukraine, and Dr. Schmitt also emphasized the importance of the following recommendations outlined in the REPowerEU plan, the European Commission’s plan to make Europe independent from Russian energy before 2030, and the International Working Group on Russia Sanctions Energy Roadmap: Full European/US embargos on Russian gas. Creation of a special escrow account that will hold net proceeds due to Russia until the Kremlin ceases all hostilities. Diversification of energy dependance away from Russia through energy diplomacy that identifies other potential suppliers, like Qatar. Funding and construction of energy infrastructure around Europe. Termination of Gazprom ownership of all critical energy infrastructure in Europe. Designation of Russia as a state sponsor of terrorism, which would automatically trigger secondary sanctions on any country that imports Russian goods. Sanctioning of all Russian banks. Strengthening of Ukrainian capacity to participate in the energy sector through the creation of modern energy infrastructure during the post-war reconstruction period. Pass the Stop Helping America’s Malign Enemies (SHAME) Act, banning former U.S. government officials from seeking employment by Russian state-owned-enterprises, or Schroederization. Related Information Witness Biographies
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press release
European Energy Security Focus of Upcoming Helsinki Commission Hearing
Thursday, June 02, 2022WASHINGTON—The Commission on Security and Cooperation in Europe, also known as the Helsinki Commission, today announced the following hearing: EUROPEAN ENERGY SECURITY POST-RUSSIA Tuesday, June 7, 2022 2:30 p.m. Watch live: www.youtube.com/HelsinkiCommission The United States and European allies have largely cut Russia out of the global economy following its full-scale invasion of Ukraine. However, given European reliance on Russian natural gas and oil, sweeping energy sanctions have lagged. The European Union spends nearly a billion euros a day on Russian energy, and several EU Member States are struggling to wean themselves off Russian resources in order to implement a full embargo. This hearing will examine plans to create a Europe that is wholly free from Russian oil and gas. Witnesses will discuss the importance of a robust energy embargo to starving the Russian war machine; options to ensure that Ukraine’s energy needs are met; alternative sources of energy for Europe; and the perspective of Germany, which plays an outsize role as the most powerful economy in Europe and a primary consumer of Russian natural resources. The following witnesses are scheduled to participate: Yuriy Vitrenko, CEO, Naftogaz Ukraine Constanze Stelzenmüller, Senior Fellow, Brookings Institution Benjamin Schmitt, Research Associate, Harvard University; Senior Fellow, Democratic Resilience Program at the Center for European Policy Analysis
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hearing
Supporting Ukrainian Refugees
Wednesday, May 25, 2022More than 6 million Ukrainians have had to flee their country due to Russia’s brutal war of aggression. Most have entered bordering EU states, with more than half of those going to Poland. Poland and other frontline countries acted swiftly not only by opening their borders to Ukrainians, but also by enacting policies and legislation to provide them with temporary status, housing, job training, healthcare, and access to education. For its part, the Biden Administration announced that it will take in 100,000 refugees, opening a path for Ukrainians to obtain humanitarian parole in the United States. In addition, the United States has provided significant humanitarian assistance and support to countries hosting refugees. Nevertheless, as Russia’s bloody assault on Ukraine enters its third month, there is no end in sight to what has become the largest refugee crisis in Europe since World War II. Witnesses discussed the responses and challenges that frontline countries face in supporting Ukrainian refugees and how the United States might strengthen its policies in response, including by making the process of applying for visas more efficient. Related Information Witness Biographies
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press release
Helsinki Commission on Sanctions Extended by Russia on Commissioners and Staff
Monday, May 23, 2022WASHINGTON—After Saturday’s announcement by the Russian foreign ministry that the latest list of Americans permanently banned from traveling to Russia includes all members of Helsinki Commission leadership, the overwhelming majority of commissioners, and nearly 20 current and former commission staff members, Helsinki Commission Chairman Sen. Ben Cardin (MD), Co-Chairman Rep. Steve Cohen (TN-09), and Ranking Members Sen. Roger Wicker (MS) and Rep. Joe Wilson (SC-02) issued the following joint statement: “The Helsinki Commission and our professional staff have worked consistently throughout our history to ensure that all OSCE participating States—including Russia—live up to their commitments to human rights and the rule of law. Clearly our work has made a significant impression on Russian dictator Vladimir Putin and his cronies, if even staff who left the commission years ago are being sanctioned by the regime. With these actions to bar travel to Russia by experts on the country, Putin continues his campaign to isolate Russians from the international community. “We will continue to hold Russia to account for its clear, gross, and uncorrected violations of the Helsinki Final Act, including the war crimes committed during its invasion of Ukraine, its suffocation of free media and civil society domestically, and its egregious attempts to undermine democracy across the OSCE region.” While this latest list is one of the largest issued by Russia, Chairman Cardin and many other members of the Helsinki Commission had previously been barred from traveling to Russia.
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press release
Support for Ukrainian Refugees to Be Discussed at Helsinki Commission Hearing
Friday, May 20, 2022WASHINGTON—The Commission on Security and Cooperation in Europe, also known as the Helsinki Commission, today announced the following hearing: SUPPORTING UKRAINIAN REFUGEES U.S. Policy and Visa Issuance Wednesday, May 25, 2022 2:30 p.m. Dirksen Senate Office Building Room 562 Watch live: www.youtube.com/HelsinkiCommission More than 6 million Ukrainians have had to flee their country due to Russia’s brutal war of aggression. Most have entered bordering EU states, with more than half of those going to Poland. Poland and other frontline countries acted swiftly not only by opening their borders to Ukrainians, but also by enacting policies and legislation to provide them with temporary status, housing, job training, healthcare, and access to education. For its part, the Biden Administration announced that it will take in 100,000 refugees, opening a path for Ukrainians to obtain humanitarian parole in the United States. In addition, the United States has provided significant humanitarian assistance and support to countries hosting refugees. Nevertheless, as Russia’s bloody assault on Ukraine enters its third month, there is no end in sight to what has become the largest refugee crisis in Europe since World War II. Witnesses will discuss the responses and challenges that frontline countries face in supporting Ukrainian refugees and how the United States might strengthen its policies in response, including by making the process of applying for visas more efficient. The following witnesses are scheduled to testify: Panel 1 Dana Francis, Acting Deputy Assistant Secretary of State, Bureau of Population, Refugees, and Migration,U.S. Department of State (TBC) Panel 2 H. E. Marek Magierowski, Ambassador of Poland to the United States Irina Manelis, Esq., Principal, Manelis Law
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briefing
Russia's Swiss Enablers
Thursday, May 05, 2022Long known as a destination for war criminals and kleptocrats to stash their plunder, Switzerland is a leading enabler of Russian dictator Vladimir Putin and his cronies. After looting Russia, Putin and his oligarchs use Swiss secrecy laws to hide and protect the proceeds of their crimes. Close relations between Swiss and Russian authorities have had a corrupting influence on law enforcement personnel in Switzerland and have led to the resignation of numerous officials, including the head prosecutor of Switzerland. A recent Organized Crime and Corruption Reporting Project investigation found that Credit Suisse catered to dozens of criminals, dictators, intelligence officials, sanctioned parties, and political actors, and identified problematic accounts holding more than $8 billion in assets. According to the Financial Times, Credit Suisse also asked investors to destroy documents linked to yacht loans made to oligarchs and tycoons. This briefing examined the relationship between Switzerland and Russia in light of Putin’s full-scale invasion of Ukraine. Panelists discussed how a compromised Switzerland affects U.S. national security and whether the United States should rethink its strategic bilateral relationship with Switzerland. Related Information Panelist Biographies How the Swiss Law Enforcement Capitulated to the Russians in the Magnitsky Case - Bill Browder
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press release
Helsinki Commission Briefing to Examine Swiss Enabling of Russian Oligarchs
Friday, April 29, 2022WASHINGTON—The Commission on Security and Cooperation in Europe, also known as the Helsinki Commission, today announced the following online briefing: RUSSIA’S SWISS ENABLERS Thursday, May 5, 2022 10:00 a.m. Register: https://ushr.webex.com/ushr/j.php?RGID=r72f85e0c40a09b609b328a9481f54063 Long known as a destination for war criminals and kleptocrats to stash their plunder, Switzerland is a leading enabler of Russian dictator Vladimir Putin and his cronies. After looting Russia, Putin and his oligarchs use Swiss secrecy laws to hide and protect the proceeds of their crimes. Close relations between Swiss and Russian authorities have had a corrupting influence on law enforcement personnel in Switzerland and have led to the resignation of numerous officials, including the head prosecutor of Switzerland. A recent Organized Crime and Corruption Reporting Project investigation found that Credit Suisse catered to dozens of criminals, dictators, intelligence officials, sanctioned parties, and political actors, and identified problematic accounts holding more than $8 billion in assets. According to the Financial Times, Credit Suisse also asked investors to destroy documents linked to yacht loans made to oligarchs and tycoons. This briefing will examine the relationship between Switzerland and Russia in light of Putin’s full-scale invasion of Ukraine. Panelists will discuss how a compromised Switzerland affects U.S. national security and whether the United States should rethink its strategic bilateral relationship with Switzerland. The following panelists are scheduled to participate: Bill Browder, Head, Global Magnitsky Justice Campaign Miranda Patrucic, Deputy Editor in Chief, Regional and Central Asia, Organized Crime and Corruption Reporting Project Mark Pieth, President of the Board, Basel Institute on Governance
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article
Following in the Footsteps of Tsar Nicholas II
Wednesday, April 27, 2022As Vladimir Putin attempts to turn back the clock to the Russian Empire of the pre-Soviet era, he also adopts a tool of political manipulation used in Imperial Russia—fostering violent extremist organizations as a means to a political end. Tsar Nicholas II used this technique with terrorist organizations like the Union of the Russian People and the Black Hundreds, and Putin follows his example today with the Russian Imperial Movement and Imperial Legion. The Russian Imperial Movement Putin advances his political agenda by allowing the Russian Imperial Movement (RIM)—a white supremacist extremist organization based in St. Petersburg—to freely exist and operate in Russia and beyond. RIM holds ultranationalist and monarchist views and believes in two pillars of authority: the political power of the tsar and the spiritual power of the Russian Orthodox Church. The U.S. State Department labeled RIM a Specially Designated Global Terrorist entity in April of 2020, making them the first white supremacist extremist organization to receive the title. RIM received the designation due, in part, to their paramilitary training course, Partizan. The course—ostensibly teaching survival skills, marksmanship, and hand-to-hand combat—functions as RIM’s citizen-to-terrorist pipeline. Attendees have gone on to join RIM’s paramilitary unit, the Imperial Legion, and fight alongside pro-Russian separatists in Ukraine. And Russians are not the only ones enrolling. In 2016, two members of Sweden’s largest neo-Nazi organization, the Nordic Resistance Movement, bombed a café and a migrant center and attempted to bomb a refugee center in Gothenburg, Sweden. The subsequent investigation discovered that the bombers were trained at Partizan. RIM has attempted to broaden its network beyond Europe. American neo-Nazi Matthew Heimbach, former head of the Traditionalist Workers Party, met with RIM representatives, and RIM offered paramilitary training to organizers of the 2017 “Unite the Right” rally in Charlottesville, Virginia. There are also reports that members of the Imperial Legion fought in conflict areas in Syria and Libya. The Russian Imperial Movement is vocally anti-Putin, decrying him and his regime. Despite this criticism and RIM’s monarchist beliefs, Putin has been lenient toward the group and allows it to operate as long as its attention remains turned away from domestic politics. Though reinstatement of a tsar remains a foundational pillar of RIM’s doctrine, it is not their main selling point. Dr. Anna Kruglova, a lecturer in Terrorism Studies at the University of Salford, finds RIM’s large web following surprising “since the group has a relatively narrow agenda—monarchist ideas are not particularly popular in Russia as only 8 percent of Russian people would want monarchy restored, according to one poll.” RIM’s appeal for potential members and Putin himself lies in its vicious ethno-nationalism. RIM demands that Russia maintain influence over all territories where ethnic Russians reside, particularly in Ukraine. For instance, Partizan-trained Russians fought alongside pro-Russian separatists in Ukraine in 2014 as members of the Imperial Legion. In the words of Denis Gariev, an instructor at Partizan, “We see Ukrainian-ness as rabies. A person is sick. Either quarantine, liquidation, or he’ll infect everyone.” Putin also values RIM as a tool to sow discord in the West. RIM supports and collaborates with other white supremacist extremist organizations, even in the United States, and trains individuals like the Swedish NRM bombers. RIM is convenient for Putin: it poses no real threat as a monarchist organization yet benefits his attempts to colonize Ukraine and destabilize the West. The Union of the Russian People The Union of the Russian People (Soyuz russkovo naroda, or SRN) was a right-wing, fanatically anti-Semitic political movement active in the 1900s. They came to prominence in the wake of the Russo-Japanese war. After the Russian Empire’s devastating defeat, there was such discontent and domestic unrest that strikes and mutinies flooded the empire, forcing Tsar Nicholas II to enact constitutional reforms. This moment, known as the 1905 Revolution, left the Russian Empire shaken and greatly polarized. Fears that the imperial system would collapse led to a rise in reactionary extreme right-wing ideologies and groups, one of which was SRN. Members of SRN and its paramilitary branch, the Black Hundred, were fervent monarchists and bore the colors of the Romanov family—the reigning imperial dynasty in Russia from 1613 to 1917—as their insignia. They also had deep ideological connections with the Russian Orthodox Church and identified Jews as the source of all evil in Russia. From 1905 to 1906, the Black Hundred carried out relentless pogroms, killing hundreds of Jews across the Russian Empire. The ruling class at the time held mixed opinions on SRN, ranging from hesitance to fanaticism. Lower-ranking officials viewed the Black Hundred’s pogroms as a convenient way to keep Jewish and ethnic minority populations in their place. The tsar called them a “shining example of justice and order to all men.” SRN was a convenient political tool for the tsar. Tsar Nicholas II believed anti-Semitism united people behind the government, and that Jewish capitalism and Jewish socialism were revolutionary forces that threatened his regime. In this way, SRN and the Black Hundred, while too radical for many members of the Duma and the public, served the tsar’s political interests. Utilizing extremism as a political weapon is not a new tool in Russia’s repertoire. As Putin harkens back to a grand Imperial history and conducts brutal military invasions into former Soviet states, like Ukraine, and political invasions of others, like Belarus, he demands comparison to the power-grasping techniques of the past. As Tsar Nicholas II’s grip on power loosened with civil unrest in the Russian Empire, he supported extremism to preserve his regime. Putin repeats this pattern today as he lets the Russian Imperial Movement and the Imperial Legion train neo-Nazis to wreak havoc and terror in the West.
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By Shelly Han
Policy Advisor
The oil, gas and mining sector play an important part of Canada’s economy, not only in terms of its domestic industry, but also the global reach of Canada’s extractive companies and the importance of its capital markets for international mining companies. According to recent reports, Toronto is the mining finance capital of the world, raising 30 to 40 per cent of the world’s mining equity almost every year, and Canadian mining companies account for a world-leading 40 percent of global exploration expenditure.
With passage of the Dodd-Frank Wall Street Reform and Consumer Protection Act in 2010, a new law was created that requires greater transparency by oil, gas and mining companies in all markets, both domestic and international. The law, sponsored by Senators Ben Cardin and Richard Lugar, requires all companies listed on U.S. stock exchanges to report to the Securities and Exchange Commission (SEC) the payments they make to U.S. and foreign governments for natural resource exploration and extraction. The SEC rule to implement this law is currently being drafted and will become final in early April of 2011.
In order to make this transparency initiative even more effective, supporters of the measure are working to enact similar initiatives in other major capital markets such as the EU, Canada, Hong Kong and elsewhere. On January 18, 2011, the Publish What You Pay Coalition of Canada convened a roundtable discussion to consider ways that Canada might harmonize its exchange reporting regulations with the new requirements enacted in the United States. At the event were key players in the Canadian extractives industry sector, the regulatory agencies, academics and non-governmental organizations. Strong support was expressed by some participants for harmonization with the U.S. because of Canada’s pivotal role in providing mining capital. And even though Canadian companies and the Canadian Government have made a tremendous push toward increasing corporate social responsibility in the mining sector, it was noted by one of the participants that Canada is about to be severely criticized by the Organization for Economic Cooperation and Development (OECD) following completion of an assessment of their enforcement of anti-bribery laws.
During the discussion, the participants noted that a complicating factor in harmonization was the fact that Canadian capital markets are administered at the provincial and territory-level, meaning that unlike the practice in the United States where this is just one federal regulator, Canada has 13 separate securities regulators. Currently pending legislation in the form of a draft Securities Act, however, may create an overarching federal securities body, but some participants expressed doubt about the passage of this bill. Even absent creation of a federal agency, some participants noted that if the major exchanges in Toronto and Ontario moved to harmonize first, then other provinces were likely to follow suit.
Regardless, Canadian regulators are unlikely to move forward until a final SEC rule is issued in April. At that time groups such as the Publish What You Pay Coalition and others will likely move forward with a renewed push for harmonization with new global standard on transparency for the extractive industries.