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Helsinki Commissioners Meet with Vaclav Havel, Commemorate 30th Anniversary of Charter 77 Movement
Thursday, March 15, 2007

On February 27, 2007, Representative Alcee L. Hastings (D-FL) and Senator Benjamin L. Cardin (D-MD), Chairman and Co-Chairman of the Commission on Security and Cooperation in Europe, met with Vaclav Havel, former president of the Czech Republic (1993–2003), world renowned human rights activist, and playwright.

“This year marks the 30th anniversary of Charter 77’s founding, a movement that was dedicated to compelling the communist government of Czechoslovakia to abide by the international human rights agreements it had freely adopted, including the Helsinki Final Act,” observed Chairman Hastings. “I was delighted to be able to personally share with President Havel the deep respect I have for him, for the movement he helped to found, and for his continuing leadership on human rights issues around the globe.”

Former Commission Chairman Representative Christopher H. Smith (R-NJ) and Czech Ambassador Petr Kolar also participated in the discussions, which touched on issues including Russia, China, Cuba, and developments in the Middle East.

Havel was briefly in Washington early this year at the Library of Congress’ John W. Kluge Center. Librarian of Congress Dr. James Billington hosted meetings on Capitol Hill with Havel and Members of Congress. Havel addressed a joint session of Congress in 1990 and was awarded the Presidential Medal of Freedom in 2003.

The Charter 77 movement was founded in Czechoslovakia in 1977, originally with the support of approximately 240 signatories, each of whom signed a card stating, “I agree with the Charter 77 declaration of January 1, 1977.” The original cards have since been discovered in the Czechoslovak secret police archives.

In January, the National Museum in Prague mounted an exhibit of materials related to the Charter 77 movement. In addition, the Washington-based National Security Archives (affiliated with George Washington University), in conjunction with the Prague-based Czechoslovak Documentation Center, released a compilation of documents about the Charter 77 movement, including now-declassified State Department and CIA reporting.

Statements made by current and former leaders of the Helsinki Commission on the occasion of the 30 th anniversary of Charter 77, as published in the Congressional Record, are printed below.

STATEMENTS REPRINTED FROM

THE CONGRESSIONAL RECORD

THE 30TH ANNIVERSARY OF THE

‘‘CHARTER 77 MOVEMENT’’

HON. ALCEE L. HASTINGS

OF FLORIDA

IN THE HOUSE OF REPRESENTATIVES

Thursday, March 1, 2007

Mr. HASTINGS of Florida. Madam Speaker, as Chairman of the Commission on Security and Cooperation in Europe, I am privileged to add my voice today to those honoring Vaclav Havel, Czechoslovakia's first post-communist President, and the Charter 77 movement which, 30 years ago, he helped to found.

Three decades ago, the Charter 77 movement was established and its founding manifesto was formally delivered to the Communist regime in Prague. The goals of the Chartists – as signatories came to be known – were fairly straightforward: “Charter 77 [they stated] is a loose, informal and open association of people of various shades of opinion, faiths and professions united by the will to strive individually and collectively for the respect of civic and human rights in our own country and throughout the world – rights accorded to all men by the two mentioned international covenants, by the Final Act of the Helsinki conference and by numerous other international documents opposing war, violence and social or spiritual oppression, and which are comprehensively laid down in the U.N. Universal Charter of Human Rights.”

The phrase “people of various shades of opinion” was, in fact, a charming understatement regarding the diversity of the signatories. Founding members of this movement included Vaclav Maly, a Catholic priest banned by the regime; Vacla Benda, a Christian philosopher; former Trotskyite Peter Uhl; former Communists like Zdenek Mlynar and Jiri Hajek, both of whom were ousted from their leadership positions in the wake of the 1968 Soviet attack that crushed the Prague Spring reforms; and, of course, Vaclav Havel, a playwright and dramatist. Notwithstanding the many differences these people surely had, they were united by a common purpose: to compel the Communist regime to respect the international human rights agreements it had freely adopted.

Interestingly, the Charter 77 movement was never a mass dissident movement – fewer than two thousand people ever formally signed this document. But, to use a boxing analogy, Charter 77 punched above its weight. Its influence could be felt far beyond the number of those who openly signed on and, ultimately, in the battle of wits and wills with the Communist regime, Charter 77 clearly won

And most importantly, Charter 77 – like other human rights groups founded at roughly the same time in Moscow, Vilnius, Warsaw and elsewhere – looked to the Helsinki process as a vehicle for calling their own governments to account. Although it is sometimes said that the Helsinki process helped to bring down communism, it is really these grass roots movements that gave the Helsinki process its real meaning and its true legitimacy.

Thirty years ago, a small, courageous band of people came together and said, “We believe that Charter 77 will help to enable all citizens of Czechoslovakia to work and live as free human beings.” Today, we remember their struggle and praise their enduring contributions to democracy and human rights.

IN HONOR OF VACLAV HAVEL

SENATOR BENJAMIN L. CARDIN

OF MARYLAND

IN THE SENATE

March 13, 2007

Mr. CARDIN. Mr. President, 30 years ago, the Charter 77 movement was established with the simple goal of ensuring that the citizens of Czechoslovakia could ``live and work as free human beings.'' Today, as cochairman of the Commission on Security and Cooperation in Europe, I join with my colleagues in celebrating the founding of Charter 77 and honoring those men and women who, through their personal acts of courage, helped bring freedom to their country.

When the Charter 77 manifesto was issued, three men were chosen to be the first spokespersons of this newly formed movement: a renowned European philosopher, Jan Patocka; Jiri Hajek, who had been Czechoslovakia's Foreign Minister during the Prague Spring; and the playwright, Vaclav Havel. They had the authority to speak for the movement and to issue documents on behalf of signatories

Tragically, Jan Patocka paid with his life for his act of bravery and courage. After signing the charter and meeting with Dutch Ambassador Max van der Stoel, he was subjected to prolonged interrogation by the secret police. It is widely believed this interrogation triggered a heart attack, resulting in his death on March 13, 1977.

In spite of the chilling message from the regime, Jiri Hajek and Vaclav Havel continued to work with other chartists, at tremendous personal cost. Two-hundred and thirty signatories were called in for interrogation; 50 houses were subjected to searches. Many supporters lost their jobs or faced other forms of persecution; many were sent to prison. In fact, the harsh treatment of the Charter 77 signatories led to the creation of another human rights group, the Committee for the Defense of the Unjustly Persecuted, known by its Czech acronym, VONS. In October 1979, six VONS leaders including Vaclav Havel, were tried for subversion and sentenced to prison terms of up to 5 years.

Perhaps the regime's harsh tactics reflected its knowledge that, ultimately, it could only retain control through force and coercion. Certainly, there was no perestroika or glasnost in Husak's Czechoslovakia, no goulash communism as in neighboring Hungary. And so, the regime was threatened by groups that might have seemed inconsequential elsewhere: by the psychedelic band, ``Plastic People of the Universe;'' by a musical appreciation group known as the Jazz Section; by environmentalists, historians, philosophers and, of course, playwrights.

Mr. President, 1989 was an extraordinary year--a year in which the regime sought to control everything and, in the end, could control nothing. In May, Hungary opened its borders. In June, free elections were held for parliamentary seats in Poland for the first time in decades. By August, 5,000 East Germans were fleeing to Austria through Hungary every single week. Demonstrations in East Germany continued to rise, forcing Eric Honecker to resign in October. On November 9, the Berlin Wall was breached.

But while Communist leaders in other countries saw the writing on the wall, authorities in Prague continued to believe they could somehow cling to power. Ironically, the regime's repressive tactics were part of its final undoing.

On November 17, 1989, significant student demonstrations were held in Prague. Human rights groups released videotapes of police and militia viciously beating the demonstrators and these tapes were rapidly and widely circulated through the underground. Shortly thereafter, VONS received credible information that a student demonstrator had been beaten to death. The alleged death so outraged Czechoslovak society that it triggered massive demonstrations. Within days, Czechoslovakia's Communist regime collapsed like a house of cards.

As it turned out, no one had actually been killed during the November 17 protests; the story of the student death had been concocted by the secret police to discredit VONS but was all too believable. As concisely stated by Mary Battiata, a reporter for the Washington Post, ``..... a half-baked secret police plan to discredit a couple of dissidents apparently boomeranged and turned a sputtering student protest into a national rebellion.'' On December 29, Vaclav Havel--who had been in prison just a few months earlier--was elected President of Czechoslovakia by the Federal Parliament.

Jan Patocka once wrote, ``The real test of a man is not how well he plays the role he has invented for himself but how well he plays the role that destiny assigned to him.'' It seems that destiny had a particular role for Vaclav Havel, not one that he invented or envisioned for himself, but one that he has played with courage and grace, with dignity and honor. Today, we honor Vaclav Havel and the Charter 77 movement he helped to found.

IN HONOR OF VACLAV HAVEL AND THE 30TH ANNIVERSARY OF CHARTER 77

HON. STENY H. HOYER OF MARYLAND

IN THE HOUSE OF REPRESENTATIVES

Tuesday, February 27, 2007

Mr. HOYER. Madam Speaker, this year marks the thirtieth anniversary of the Charter 77 movement. Along with other colleagues from the Helsinki Commission, which I had the privilege of Chairing and Co-Chairing from 1985 to 1994, I rise today to commemorate Charter 77's extraordinary accomplishments, and to praise Vaclav Havel, a founding member of the Charter 77 movement and Czechoslovakia's first President after the fall of communism.

Twenty years ago this month, I led a Congressional delegation to Czechoslovakia – my first trip to that country. At that time, I was assured by Czechoslovak Government officials that Charter 77 was only a small group, and there was no need to have a dialogue with its members. In an apparent effort to underscore their point, the regime detained several Chartists to keep them from meeting with our delegation: Vaclav Havel, Petr Uhl and Jiri Dienstbier were all arrested in Prague; Miklos Duray was prevented from traveling to Prague from Slovakia; and although Petr Puspoki-Nagy made it to Prague, he was also immediately detained on his arrival.

Although I was deprived of the chance to meet these individuals in person, I was already well aware of their work. In fact, the Helsinki Commission's second hearing, held in February 1977, published the full text of the Charter 77 manifesto at the request of one of our witnesses, Mrs. Anna Faltus. We owe a special debt of gratitude to the late Mrs. Faltus, who worked tirelessly for decades as an advocate for a free Czechoslovakia. To this end, she made sure that the documents of Charter 77 and the Committee for the Defense of the Unjustly Persecuted were quickly translated and widely disseminated to policy makers and human rights advocates. Her effort made it possible for the Helsinki Commission to publish (in 1982 and in 1987) selected and representatives texts of the Charter 77 movement.

Looking back, the breadth of those documents is truly remarkably, touching on everything from the legacy of World War II to the country's economic situation; from contemporary music to nuclear energy. But the common thread that bound these diverse statements together was a commitment to promote and protect “the right of the individual to know and act upon his rights.” This right was freely adopted by the Czechoslovak Socialist Republic when Gustav Husak fixed his signature to the Helsinki Final Act in 1975.

It was, of course, with great interest that I discussed Charter 77 , first with Czechoslovak officials during my February 1987 trip to Prague, then with Czechoslovak parliamentarians visiting Washington in June 1988 (a delegation which included Prague Communist Party boss Miroslav Stepan), and then with the Czechoslovak delegation to the 1989 Paris Meeting of the Conference on the Human Dimension. In these meetings, as well as in correspondence with the Czechoslovak Ambassador to the United, I was told that Charter 77 didn't represent public opinion. I was warned that siding with Charter 77 would not help bilateral relations, and I was assured that democracy was coming soon to Czechoslovakia – “socialist democracy.”

Needless to say, I was not convinced by my interlocutors: I was not convinced that Augustin Navratil was actually being treated for a mental health condition, rather than being persecuted for his religious activism. I was frankly disgusted when the Czechoslovak delegation to the Paris meeting baldly lied about Jiri Wolf, telling us he had been released early from his prison sentence as a “humanitarian” gesture, and then shrugging with indifference when they were caught in their lie. Most of all, I did not believe that Vaclav Havel was a criminal and Charter 77 merely an “insignificant” group.

In fact, in 1989 Senator Dennis DeConcini and I nominated Vaclav Havel for the Nobel Peace Prize. As Senator DeConcini said, “[i]n spite of relentless harassment by the authorities, including imprisonment, repeated detentions, house searches, and confiscation of property, Havel has remained active in the struggle for human rights. . . Havel is now in prison, but he is not alone in his cause. In a dramatic move. . . over 700 of his colleagues – playwrights, producers, artists, and actors – signed a petition calling for his release and the release of others [similarly imprisoned]. For these people, like many others in his country, Vaclav Havel has become a symbol of an enduring and selfless commitment to human rights.”

Madam Speaker, on this 30th anniversary of the founding of the Charter 77 movement, I rise to commend and remember the courageous men and women, signatories and supporters, who paved the way for the peaceful transition from communism in Czechoslovakia and restoration of Europe, whole and free. On this anniversary, I give special tribute to Vaclav Havel, playwright and president, and his singular role in leading his country to freedom.

IN HONOR OF VACLAV HAVEL AND

THE 30TH ANNIVERSARY OF

CHARTER 77

HON. CHRISTOPHER H. SMITH

OF NEW JERSEY

IN THE HOUSE OF REPRESENTATIVES

Tuesday, February 27, 2007

Mr. SMITH of New Jersey. Madam Speaker, Edmund Burke once said that, “all it takes for evil to triumph is for good men to do nothing.” Thirty years ago, good men and women came together, and together, they ultimately triumphed over evil.

In 1987, I traveled to Czechoslovakia with a Helsinki Commission delegation led by my good friend, STENY HOYER, who was then Chairman of the Commission. We traveled there just ten years after the Charter 77 movement had been formed and, amazingly, in spite of persecution and imprisonment, they had managed to publish 350 documents during its first ten years. And it was clear during my visit to Prague that this organization was having an impact, especially when the communist authorities went to the trouble of preventing five independent activists, including Vaclav Havel, from meeting with us.

In spite of this, our delegation was able to meet with several other Charter 77 signatories and sympathizers: Libuse Silhanova, Josef Vohryzek, Father Vaclav Maly, Zdenek Urbanek, and Rita Klimova. Libuse Silhanova, then serving as a Charter 77 spokesperson, described her fellow Chartists as ``ordinary people who happen to be part of a movement.'' For a group of ``ordinary people,'' they certainly accomplished extraordinary things.

One of the most notable of these “ordinary people” was the playwright Vaclav Havel, who is today the sole surviving member of Charter 77’s first three spokespersons. At a time when most Czechoslovaks preferred to keep their heads low, he held his up. When others dared not speak out, he raised up his voice. While others hid from communism in their apartments and weekend cottages, he faced it down in prison.

In 1978, Havel wrote a seminal essay entitled, “The Power of the Powerless.” In it, he proposed a remarkably conspiratorial concept: the idea that those repressed by the Communist Lie actually had the power to “live for truth,” and that by doing so, they could change the world in which they live.

One of the people who read this essay was Zbygniew Bujak, who became a leading Solidarity activist in Poland. Bujak described the impact of Havel's message:

This essay reached us in the Ursus factory in 1979 at a point when we felt we were at the end of the road. Inspired by KOR [the Polish Workers' Defense Committee, which preceded Solidarity], we had been speaking on the shop floor, talking to people, participating in public meetings, trying to speak the truth about the factory, the country, and politics. There came a moment when people thought we were crazy. Why were we doing this? Why were we taking such risks? Not seeing any immediate and tangible results, we began to doubt the purposefulness of what we were doing. Shouldn't we be coming up with other methods, other ways?

Then came the essay by Havel. Reading it gave us the theoretical underpinnings for our activity. It maintained our spirits; we did not give up, and a year later – in August 1980 – it became clear that the party apparatus and the factory management were afraid of us. We mattered. And the rank and file saw us as leaders of the movement. When I look at the victories of Solidarity, and of Charter 77, I see in them an astonishing fulfillment of the prophecies and knowledge contained in Havel’s essay.

Vaclav Havel’s essay was not just the product of clever wordsmithing; it was an act of singular heroism. In fact, shortly after writing “The Power of the Powerless,” Vaclav Havel found himself in prison, again. And it should be remembered that others, including philosopher Jan Patocka, Havel's close friend, and Pavel Wonka, paid with their lives for their opposition to the Czechoslovak communist regime.

Vaclav Havel is a man who has always been guided by the courage of his convictions. Remarkably, his courage did not fade upon his assumption of the presidency. Indeed, he is all the more heroic for his steadfast commitment to human rights even from the Prague Castle. From the beginning, he was a voice of reason, not revenge, as he addressed his country's communist and totalitarian past. In 1993, he rightly identified the situation of Roma as “a litmus test for civil society.” And not only has he raised human rights issues in his own country but reminds the world of the abuses taking place in Cuba and China.

Throughout his presidency, he pardoned those faced with criminal charges under communist-era laws that restrict free speech. In 2001, he spoke out against the parliament's regressive religion law, which turned the clock back on religious freedom. And he has reminded other world leaders of our shared responsibility for the poor and less fortunate the world over.

On the occasion of the 30th anniversary of the founding of Charter 77, I want to join my colleagues from the Helsinki Commission in honoring Vaclav Havel and all the men and women who signed the Charter, who supported its goals, and who helped bring democracy to Czechoslovakia.

IN HONOR OF VACLAV HAVEL

SENATOR SAM BROWNBACK

OF KANSAS

IN THE SENATE

March 07, 2007

Mr. BROWNBACK. Mr. President, today I wish to join my colleagues from the Helsinki Commission in commemorating the founding of the Charter 77 movement 30 years ago, and praising Vaclav Havel, one of Charter 77’s first spokesmen and the first post-Communist President of Czechoslovakia.

Many aspects of Vaclav Havel’s biography are well known. His advanced formal education was limited by the Communist regime because of his family's pre-World War II cultural and economic status. By the 1960s, he was working in theater and writing plays. But by 1969, the Communist regime had deemed him “subversive,” and his passport was confiscated.

In 1977, he took the daring step of joining two others – Jan Patocka and Jiri Hajek – in becoming the first spokesmen for the newly established “Charter 77” movement. This group sought to compel the Czechoslovak Government to abide by the international human rights commitments it had freely undertaken, including the Helsinki Final Act.

In the 1970s and 1980s, Vaclav Havel was repeatedly imprisoned because of his human rights work. His longest period of imprisonment was 4 1/2 years, 1979-1983, for subversion. After this, Havel was given the opportunity to emigrate but, courageously, he chose to stay in Czechoslovakia. By February 1989, Havel had come to symbolize a growing human rights and democratic movement in Czechoslovakia and, that year, the Helsinki Commission nominated him for the Nobel Peace Prize.

Remarkably, in November 1989, the repressive machinery of the Communist regime – a regime that for five decades had persecuted and even murdered its own citizens – collapsed in what has come to be known as the “Velvet Revolution.”

To understand just how repressive the former regime was – and therefore how stunning its seemingly sudden demise was – it may be instructive to recall the first measures of the post-Communist leadership, introduced in the heady days of late 1989 and early 1990. First and foremost, all known political prisoners were released. Marxism-Leninism was removed as a required course from all school curricula. Borders were opened for thousands of people who had previously been prohibited from traveling freely. Control over the People's Militia was transferred from the party to the Government. The Federal Assembly passed a resolution condemning the 1968 Soviet-led invasion of Czechoslovakia. Approximately 40 Ambassadors representing the Czechoslovak Communist regime were recalled. Newly appointed Foreign Minister Jiri Dienstbier announced that the “temporary” 1968 agreement allowing Soviet troops to remain in Czechoslovakia was invalid because it was agreed to under duress and that Soviet troops would withdraw from the country. The Politburo announced it would end the nomenklatura system of reserving certain jobs for party functionaries. The secret police was abolished. Alexander Dubcek, leader of the 1968 Prague Spring, was elected Chairman of the Federal Assembly on December 28 and, a day later, Vaclav Havel was voted to replace Gustav Husak. In February 1990, Vaclav Havel addressed a joint session of Congress.

Charter 77 paved the way for all of these things, and more: for Czechoslovakia's first free and fair elections since 1946, for the normalization of trade relations between our two countries, and for the Czech Republic's accession to NATO. Not surprisingly, the work of Charter 77 continues to inspire, as is evidenced by the adoption of the name “Charter 97” by human rights activists in Belarus, who are still working to bring to their own country a measure of democracy and respect for human rights that Czechs have now enjoyed for some years.

I am therefore pleased to recognize the 30th anniversary of the Charter 77 movement and to join others in honoring Vaclav Havel who remains, to this day, the conscience of the global community.

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Like their counterpart in St Moritz, Swiss bankers the FT interviewed for this story all declined to be identified. Many more refused to speak at all. Switzerland’s banking secrecy laws are draconian — talking about clients can earn a lengthy jail term — and talking about Russian clients is even more taboo. “When we were onboarding a lot of these clients [in the 2000s], the entire approach was just very different. And you can’t really say that publicly now,” says one former banker who handled eastern European and Russian clients until retiring two years ago. “These [Russians] were people who had earned so much money, so quickly, that they didn’t know what to do with it. They were basically ideal clients. As long as you had no questions about where that money had come from . . . and, basically, we didn’t.” Quite how much Russian money there is in Switzerland is open to question. In March, the industry body representing Switzerland’s banks, the Swiss Bankers Association (SBA), caused a stir when it released details of a study estimating there was SFr150bn-SFr200bn ($154bn-$205bn) held in accounts for Russian citizens. At the end of last year, the total cash held on behalf of customers by Switzerland’s banks was SFr7,879bn, more half of which was wealth from abroad, according to the SBA. The disclosure prompted hand-wringing in the Swiss media. Commentators, even at conservative outlets such as the newspaper Neue Zürcher Zeitung, asked whether Switzerland should do business with autocratic regimes anywhere in the world any more. But others in the country have defended its economic relationships with Russia. The outspoken finance director of the canton of Zug, an important low-tax centre, said in March it was not his job to “act like a detective” and make judgments on Russian assets. In April, he announced that Zug, home to 37,000 companies, had no sanctioned assets to report back to Bern. Nevertheless, by April, the State Secretariat for Economic Affairs (SECO) announced that it had frozen SFr9.7bn of Russian assets. Authorities have insisted that the amount is proportionate to the scale of asset freezes in other leading financial centres. But Bern has been forced to row back in some cases, and in May it announced it was unfreezing SFr3.4bn of funds. Switzerland cannot freeze funds “without sufficient grounds”, says Erwin Bollinger, a SECO official, who adds that the government has received data on sanctioned accounts at more than 70 of the country’s banks. Direct disclosure by the banks has been patchy. Credit Suisse chief executive Thomas Gottstein told a conference in March that about 4 per cent of assets in his bank’s core wealth management business were Russian — a proportion that would equate to roughly SFr33bn. Meanwhile, UBS, the world’s largest private wealth manager, has disclosed it has $22bn of assets of “Russian persons not entitled to residency in the European Economic Area or Switzerland”, leaving open the question of how much it holds overall. Some 16,500 Russians are permanently resident in Switzerland, and more Russians are accepted for Swiss citizenship than any other nationality, according to the State Secretariat for Migration. Julius Baer has made no direct disclosure of the size or wealth of its Russian client base, though it has said, somewhat elliptically, that the value of assets held by its Moscow-based subsidiary is some SFr400mn. Information from the dozens of other smaller Swiss private banks is even scantier. Even leading industry figures wonder what is being left unsaid. One executive, who for the past two decades has been a senior figure in the private banking world in Switzerland, says he has almost no doubt that the significance of many banks’ close working relationships with sanctioned individuals is being underplayed. “You don’t have dozens and dozens of people employed on your Russia desks if you are not making money in Russia,” he says. Moreover, he adds, many Russian clients have done their business through Swiss banks’ subsidiaries abroad, such as those in Monaco, London or Asia. It is not clear to him whether all these assets have been caught by the Swiss rules. Swiss banks have a legal obligation to record the ultimate beneficial owners of all assets they handle worldwide, but doing so accurately can be tricky in jurisdictions where it is easy for third parties to mask who the owners are. Switzerland’s banks have moved dramatically from the freewheeling approach of previous years, when there was “a run on Russia”, says Thomas Borer, a former leading Swiss diplomat turned consultant, who has worked with prominent Russian clients. He now supports Switzerland’s sanctions policy. “Being militarily neutral does not mean being economically indifferent,” he says. But he argues that Swiss banking culture is still very different from elsewhere in the west. Even the biggest banks, he says, were clinging to relationships with Russian clients as the Ukraine crisis unfolded. The Financial Times revealed that, as late as March, Credit Suisse was asking investors to destroy documents that might expose Russian oligarchs it had done business with to legal risks. One senior relationship manager at a Zurich-based bank agrees. Even as sanctions came in, he says, the dominant approach was to ask, “how can we make this work for the client?” rather than “how do we do this for the government?”. But he defends the approach, saying: “Doing everything you can for your client is a Swiss commitment to excellence. If I was a watchmaker I would want to make the best watches with many complications. And if I was a policeman, then maybe I would want to be the best at catching Russian criminals. But I’m a banker.” There is still legal ambiguity in Switzerland over whether sanctions apply to family members and friends of listed individuals. This has provided a loophole bankers have helped at-risk clients to actively exploit in recent years. Swiss banks have seen “billions” of assets transferred to the names of spouses and children of Russian clients, in a trend that accelerated in the run-up to the war, says one banker. One bank chief executive admitted recently to the FT that there were many “grey areas” in applying sanctions. Part of the problem, he said, was that bank legal departments were struggling to obtain clarity from Bern on which asset transfers were deemed to be evading sanctions and which were not. Many who have been in the industry for a long time decry the new rules they must follow around taking new clients and being certain of the source of their wealth. “Know your customer used to mean just that: do you know the person? Now it is supposed to mean: do you know every little thing about their financial and private life?” says one Geneva-based banker. Many Russians themselves knew the banks were no longer safe havens, particularly since 2018 when Swiss banks began making significant concessions to information sharing on client accounts with other governments. Swiss residency did not protect billionaire Viktor Vekselberg in 2018, for example, when he was targeted by US sanctions; both Credit Suisse and UBS moved to terminate loans with him. The SBA says its members adhere to the highest international standards. Chief executive Jörg Gasser, argues Swiss banks have “no interest in funds of dubious origin” and have rigorous procedures in place to rapidly screen for sanctioned assets. “Swiss banks have been — and still are — very careful and diligent when it comes to accepting client funds,” he says, adding it is important to recognise the huge amount of legitimate business done with Russian entrepreneurs who are not subject to sanctions. For Mark Pieth, emeritus professor of criminal law at the University of Basel and a specialist in white-collar crime, the real story of the past decade is how Switzerland’s lawyers, rather than its bankers, have become the facilitators of hidden foreign money. “Swiss bankers were extremely cosy with Russians in the past,” he says. “Alongside London, this country was the porch for Russians into the west . . . but now I wouldn’t say the problem is so much with the banks — it is all the other intermediaries.” Swiss law gives remarkable sweep to attorney-client privilege, says Pieth, meaning lawyers can refuse to disclose almost anything to the authorities about their clients. The Swiss Bar Association strongly rejects this. “Professional secrecy does not protect against criminal acts,” it says. “Lawyers know the law and know what to do.” One senior industry figure defends the banks’ position unapologetically. He says everybody now wants to know the origins of their luxury jackets. But 10 years ago nobody was asking where they were made, by whom and with what materials. In banking, as in fashion, things have changed, he says, but nobody is haranguing the fashion world in the same way they are criticising banks. Fashion companies, though, have moved with the times and opened up, whereas Switzerland’s banks, for all their insistence on change and compliance, still want to maintain as much of the secrecy surrounding their clients as possible — even at a time of international crisis.  

  • European Energy Security Post-Russia

    Russia 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

  • European Energy Security Focus of Upcoming Helsinki Commission Hearing

    WASHINGTON—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

  • Why I’m Sad to Be on Russia’s All-Purpose Payback List

    Reading Russia’s latest sanctions list, permanently banning travel to the country by 963 people, saddened me — and not just because my name is on it. It’s a catalogue of hurt from a nation that seems ready to blame everybody but its leaders for its current troubles. The list is very long indeed, running to nearly 100 pages in my printout. Reading so many names, you sense that Russia is deliberately burning nearly all its bridges to the United States. Russia’s ruling elite feels abused by American politicians, business leaders, journalists, judges, think tanks — nearly everyone, it seems. Donald Trump can still visit Moscow, but scores of Republican members of Congress can’t. The list of excluded GOP senators ranges from moderates such as Roy Blunt of Missouri and Mitt Romney of Utah to hard-right stalwarts Ron Johnson of Wisconsin and Tom Cotton of Arkansas. The GOP doesn’t fare much better in the House. Moderates Liz Cheney of Wyoming and Mike Gallagher of Wisconsin can’t tour the Kremlin anymore, but neither can Jim Jordan of Ohio or Marjorie Taylor Greene of Georgia. As for Democrats, forget about it. The sanctions list includes the Democratic House leadership, including Speaker Nancy Pelosi of California, Majority Leader Steny H. Hoyer of Maryland and Democratic Whip James E. Clyburn of South Carolina. The Congressional Progressive Caucus can save its rubles, too. The members of “the Squad” are all banned. So are Pramila Jayapal of Washington state and Ro Khanna of California. It’s the same on the Senate side. Majority Leader Charles E. Schumer of New York and Whip Richard J. Durbin of Illinois: Nyet, nyet.

  • Helsinki Commission on Sanctions Extended by Russia on Commissioners and Staff

    WASHINGTON—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.

  • Swiss Release Some Frozen Russian Assets

    The Swiss government on Thursday reported 6.3 billion Swiss francs ($6.33 billion) worth of Russian assets frozen under sanctions to punish Moscow's invasion of Ukraine, a drop from early April as around 3.4 billion francs in provisionally blocked assets were released. The figure marked a decrease from roughly 7.5 billion Swiss francs in funds the government reported frozen on April 7. Government official Erwin Bollinger pointed to fewer funds -- 2.2 billion francs -- newly frozen than those that had been released. read more "We can't freeze funds if we do not have sufficient grounds," Bollinger, a senior official at the State Secretariat for Economic Affairs (SECO) agency overseeing sanctions, told journalists. Pressure has increased on Switzerland -- a popular destination for Moscow's elite and a holding place for Russian wealth -- to more quickly identify and freeze assets of hundreds of sanctioned Russians. read more The U.S. Helsinki Commission, a government-funded independent commission which looks at security, cooperation and human rights issues in Europe, in early May called Switzerland "a leading enabler of Russian dictator Vladimir Putin and his cronies", who the commission said used "Swiss secrecy laws to hide and protect the proceeds of their crimes". The Swiss government rejected the accusations "in the strongest possible terms", while Swiss President Ignazio Cassis had requested the U.S. government "correct this misleading impression immediately" during a telephone call with U.S. Secretary of State Antony Blinken. Swiss banks hold up to $213 billion of Russian wealth, Switzerland's bank lobby estimates, with its two largest lenders UBS (UBSG.S) and Credit Suisse (CSGN.S) each holding tens of billions of francs for wealthy Russian clients. read more Credit Suisse alone froze some 10.4 billion Swiss francs of that money through March under sanctions imposed in connection with the invasion. read more Credit Suisse's reporting did not make clear how much of that money was frozen in Switzerland. While banks and asset managers can provisionally freeze funds, SECO officials on Thursday said funds needed to be released if they could not establish the assets were directly owned or controlled by a sanctioned individual. "The amount of assets frozen is not a measure of how effectively sanctions are being implemented," Bollinger said, adding asset freezes were "by far" not the most important measure in a wide-ranging packet of sanctions. ($1 = 0.9948 Swiss francs)

  • Helsinki Commission Calls on Russia to Release 'True Patriot' Kara-Murza

    A U.S. human rights monitor is calling for the release of journalist Vladimir Kara-Murza, a prominent Russian opposition figure who has spoken out against what he has called his government's crackdown on dissent. The U.S. Helsinki Commission on Monday raised alarm over the detention of Kara-Murza in Moscow a month after he outlined the Kremlin's increased use of propaganda and censorship. His arrest is the latest report of authorities attempting to silence critics since Russian President Vladimir Putin launched his invasion of Ukraine in February. "We are alarmed to learn that Vladimir Kara-Murza has been detained in Moscow. Vladimir is not a criminal but a true patriot motivated by the potential of a democratic future for Russia and freedom for its people," the commission said in a statement. "He must be allowed access to his lawyer and should be released immediately." The commission, a U.S. government agency comprised of members of Congress and representatives from federal agencies, heard testimony from Kara-Murza who described how the Russian government has used disinformation and the growing struggles of independent media outlets. The Russian government in March enacted new restrictions, criminalizing media from using the word "invasion" to describe the conflict in Ukraine. Those who violate them could face up to 15 years in prison. Speaking before the commission, Kara-Murza said that following the invasion, Putin moved swiftly against "what remained of independent media in Russia." Kara-Murza said that within days, authorities shuttered independent outlets, including Echo of Moscow, a radio station where he hosted a weekly program. He also pointed to how the Russian government has blocked access to social media networks. Other news outlets, such as highly respected Novaya Gazeta, ceased publication because of censorship, he said. Calling many Russians "brainwashed," he said many are not even aware of potential war crimes their government is alleged to have committed in Ukraine. "Today, most Russians are in an Orwellian parallel reality created by the Kremlin propaganda machine," Kara-Murza told the commission. "And I mean, Orwellian in the literal sense, what's being said on Russian state television might as well have come out of George Orwell's 1984: 'War is peace. Freedom is slavery. Ignorance is strength.'" Since Russia's new censorship laws have gone into effect, reports have emerged of students or parents turning in teachers who spoke disapprovingly of the war. Nobel Prize laureate and editor-in-chief of Novaya Gazeta, Dmitry Muratov, was attacked on a train. Russian authorities have also threatened Wikipedia with a nearly $50,000 fine for refusing to delete "illegal information." Kara-Murza, an author and politician who was repeatedly poisoned, has continued speaking out despite his arrest, making an appearance on MSNBC on Sunday.

  • Helsinki Commission Remembers Late Chairman Alcee Hastings

    WASHINGTON—On the anniversary of the death of former Helsinki Commission Chairman Alcee Hastings of Florida, Helsinki Commission Chairman Sen. Ben Cardin (MD), Co-Chairman Rep. Steve Cohen (TN-09), Ranking Member Sen. Roger Wicker (MS), and Ranking Member Rep. Joe Wilson (SC-02) issued the following joint statement: “Alcee Hastings was a giant in foreign affairs, knowledgeable on all issues relating to security in Europe. As the only American to serve as President of the Organization for Security and Cooperation in Europe’s Parliamentary Assembly, he led that organization in cementing its members’ commitment to peace, security and human rights. Wherever he traveled on OSCE business, he was universally respected and liked. A year after his passing, he remains a revered figure and world-renowned leader.”

  • Co-Chairman Cohen Leads Bipartisan Congressional Delegation to Defend Democracy and Ukrainian Sovereignty at OSCE PA Winter Meeting

    WASHINGTON—Helsinki Commission Co-Chairman Rep. Steve Cohen (TN-09) last week led a bipartisan Congressional delegation to the Winter Meeting of the OSCE Parliamentary Assembly (PA) in Vienna, Austria, which focused almost exclusively on responding to the full-scale Russian assault on Ukraine.  A sizable and active U.S. presence at the hybrid event helped generate nearly united condemnation of the Kremlin attack and provided assurance of the U.S. commitment to European security during a time of great uncertainty. “Our bipartisan delegation actively and adamantly defended Ukraine’s rights as a sovereign nation in the face of unchecked Russian aggression,” said Co-Chairman Cohen. “The European security architecture that has supported peace and prosperity on the continent and around the world for decades must not be allowed to crumble at the whim of a dictator with grandiose aspirations of returning to some imagined past glory. It is long past time that democratic nations—including all other OSCE participating States—unite to firmly put Putin back where he belongs: isolated and outside the bounds of international society.” Other members of Congress traveling to Vienna included Helsinki Commission Ranking Member Rep. Joe Wilson (SC-02), Commissioners Rep. Robert Aderholt (AL-04), Rep. Richard Hudson (NC-08), and Rep. Marc Veasey (TX-33), as well as Rep. Sheila Jackson Lee (TX-18). Remote participants in the Winter Meeting included Ranking Member Sen. Roger Wicker (MS) and Rep. Chris Smith (NJ-04). Although the meeting included a wide range of OSCE issues of concern, Russia’s brazen invasion of Ukraine dominated all discussion.  “Fundamental underpinnings of our security order, including commitments to respect other countries’ territorial integrity, sovereignty, and choices of security alliances, are at this moment being breached, flagrantly and deliberately, by one of our participating States, which is—as we speak—conducting an unprovoked invasion of another participating State,” said Rep. Hudson, who chairs the OSCE PA General Committee on Political Affairs and Security. “If Vladimir Putin succeeds in Ukraine, he will not stop there—just as he did not stop with Transnistria, Abkhazia, South Ossetia, Crimea, and the Donbass. How can any of us realistically believe he will stop with Ukraine?” asked Sen. Wicker, who serves as a vice-president of the OSCE PA. “According to Putin’s twisted rationale, every former republic of the USSR is at risk. NATO is at risk. Every member of the peace-loving international community is at risk of being swept up into this conflict.” Members of the U.S. delegation directly challenged the egregious assertions of the few Russian delegates who attempted to justify their country’s naked aggression. Other issues raised by the U.S. delegation included human rights violations within Russia, as well as in Belarus and in areas of Ukraine under illegal occupation; ongoing concerns regarding human trafficking; and the assault on free media throughout the OSCE region.  Ahead of the Winter Meeting, members of the in-person delegation traveled to Lithuania to underscore U.S. support for a crucial NATO Ally at a time of deep concern caused by Russian aggression. In Vilnius, they met with Lithuanian President Gitanas Nauseda, Prime Minister Ingrida Simonyte, Foreign Minister Gabrielius Landsbergis, and senior members of the Lithuanian Parliament (Seimas) to discuss the Russian assault on Ukraine, the deterioration of regional security, and Lithuania’s values-based foreign policy, including relations with China. The delegation also visited the Pabrade Training Area for briefings on U.S. and Allied military activities conducted in the region, and met with Belarusians and Russians who have fled to Lithuania to avoid persecution, including Sviatlana Tsikhanouskaya and other opposition leaders, members of the business community, civil society organizations, and the media.

  • Ahead of OSCE PA Winter Meeting, Co-Chairman Cohen Reiterates Support for Ukrainian Sovereignty

    WASHINGTON—Helsinki Commission Co-Chairman Rep. Steve Cohen (TN-09) today issued the following statement: “Over the upcoming Congressional recess, I am proud to be leading a bipartisan, bicameral delegation to the Winter Meeting of the OSCE Parliamentary Assembly. In today’s climate of global uncertainty, engagement between foreign officials and members of Congress offers reassurance to U.S. allies about the commitment of the United States to peace, security, and prosperity in Europe and beyond. “Our delegation also will take the opportunity to visit other NATO Allies to consult with government officials in light of the unprecedented number of Russian forces deployed in and around Ukraine. While we originally planned to stop in Kyiv, the relocation of embassy staff necessitated the unfortunate cancellation of that portion of our itinerary. However, I would like to take this opportunity to reassure the Government of Ukraine of the steadfast support of Congress for Ukrainian sovereignty and territorial integrity in the face of Russian aggression. Rest assured we will bring up support for your nation’s security at the OSCE PA meetings.”

  • Helsinki Commission Mourns Death of Senator Bob Dole

    WASHINGTON—Following the death of Senator Bob Dole, Helsinki Commission Chairman Sen. Ben Cardin (MD), Co-Chairman Rep. Steve Cohen (TN-09), Ranking Member Sen. Roger Wicker (MS), and Ranking Member Rep. Joe Wilson (SC-02) issued the following joint statement: “Senator Dole, who served as the co-chairman of the Helsinki Commission from 1981 to 1985, will be remembered for his efforts to elevate the role of the Senate in the work of the Helsinki Commission and for his support for peace, security, democracy, and human rights for all. “As a participant in early meetings of the Helsinki diplomatic process, he helped develop a tradition of frank and direct exchanges of views between participating countries on human rights concerns, particularly the incarceration of Helsinki human right monitors in the Soviet Union and crackdowns on dissent in Eastern Europe. In the early 1990s, he worked closely with commission leadership advocating for a decisive international response, led by the United States, to the aggression and ethnic cleansing taking place in Bosnia and Herzegovina. After leaving the Senate, Senator Dole traveled to Kosovo in 1998 to document atrocities occurring there and subsequently testified about his findings at a Helsinki Commission hearing.  “We will always be grateful for Senator Dole’s enormous contribution to the Helsinki Commission and to its mission.”

  • 30 Years After Ovcara

    By Robert Hand, Senior Policy Advisor On November 20, 1991, after the fall of the city of Vukovar in Croatia, militant Serb forces removed 265 ill and injured Croats from a hospital. They were taken to the nearby Ovčara farm southeast of Vukovar, where they were abused before being shot and killed, with their bodies dumped in a mass grave. In addition to wounded members of the Croatian armed forces were civilians, including some women and children.   The Helsinki Commission strongly supported the international effort to prosecute those responsible for war crimes, crimes against humanity, and genocide in the former Yugoslavia, including those most responsible for the crime at Ovčara, which took place early in a series of conflicts associated with Yugoslavia’s disintegration throughout the 1990s.  Many obstacles stood in the way, but after years of persistent effort justice prevailed. However, malicious acts supporting territorial aggression continue in the OSCE region and elsewhere. When remembering Ovčara, it is important to acknowledge the brave few in Serbia—civil society advocates, political activists, journalists, lawyers and judges, and everyday citizens—who consistently have refused to associate themselves with the terrible crimes committed in their name in the 1990s, and seek to this day not only justice but a needed acknowledgement of reality in the face of continued denial and revisionism. A wider acknowledgement led by those holding power today will mean a better future for Serbia and its neighbors tomorrow.

  • Helsinki Commission Digital Digest October 2021

  • Helsinki Commission Mourns Death of Colin Powell

    WASHINGTON—Following the death of former U.S. Secretary of State Colin Powell, Helsinki Commission Chairman Sen. Ben Cardin (MD), Co-Chairman Rep. Steve Cohen (TN-09), Ranking Member Sen. Roger Wicker (MS), and Ranking Member Rep. Joe Wilson (SC-02) issued the following joint statement: “We mourn the loss of a thoughtful leader, respected diplomat, and dedicated public servant. Former Secretary of State Colin Powell actively supported the work of the Organization for Security and Cooperation in Europe (OSCE) and its comprehensive definition of security, which includes respect for human rights. In 1990, as Chairman of the Joint Chiefs of Staff, his leadership of the U.S. delegation to a seminar in Vienna on military doctrine demonstrated that when Moscow was serious about overcoming differences through the Helsinki Process, the United States was ready to collaborate, as is true today. “Secretary Powell’s subsequent work in the OSCE on fighting anti-Semitism and championing election observation proved that he was not only a warrior and a diplomat, but also a steadfast advocate for human rights and a defender of the most vulnerable.” Secretary Powell was one of the most active U.S. Secretaries of State in OSCE history, personally attending Ministerial Council meetings in 2001, 2003, and 2004. In 2001, he said: “We see our membership in the OSCE as complementing and reinforcing our strong bilateral ties with European and Eurasian countries, our membership in NATO, and our relationship with the European Union. This organization embraces a wide-range of ethnicities, traditions and histories. More importantly, it reflects our common embrace of democratic and market principals and our common commitment to peace and stability. In short, the OSCE encompasses the hopes that all of us share for a Europe that is fully whole and free.”

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