Title

Title

Corruption Currents
The Wall Street Journal
Samuel Rubenfeld
Monday, October 23, 2017

A daily roundup of corruption news from across the Web. We also provide a daily roundup of important risk & compliance stories via our daily newsletter, The Morning Risk Report, which readers can sign up for here. Follow us on Twitter at @WSJRisk.

Bribery:

A bribery case in Russia involving the country’s elite is causing a stir in the Kremlin. (NY Times)

The question of what constitutes bribery is trickier than it seems. (Washington Post, GAB)

The NCAA bribery scandal claimed more scalps. (AP, ESPN, 24)

Cybercrime:

The Dark Web’s most notorious thief was doxed. (Daily Beast)

The hack of Equifax is leading to calls to change the credit-reporting industry. (NPR)

Fraud:

A federal judge postponed a Texas lawmaker’s fraud trial. (mySA)

Money Laundering:

Canadian authorities laid charges against a money-transfer firm in a case of alleged drug-linked money laundering. The firm didn’t respond to a request for comment. (Vancouver Sun)

A guilty plea to a structuring charge, in which he made transactions of a certain size to avoid regulators, killed a man’s business and his wife, and the IRS won’t return his money. (Washington Post)

The son of Thailand’s former premier blasted authorities for releasing photos of him answering questions about money-laundering allegations. (Bangkok Post, Reuters, Bangkok Post)

Indian authorities continue bringing money-laundering cases. (Express, Telegraph)

Sanctions:

The U.S. State Department revoked the visa of Bill Browder after Russia sought an Interpol notice for his arrest in the death of Sergei Magnitsky. Mr. Magnitsky, however, died in Russian police custody after reporting a tax fraud while working for Mr. Browder; his death led the U.S. to pass the Magnitsky Act. (Newsweek, NPR, euronews, NY Times, Channel4)

Iran’s president is cutting back on the Revolutionary Guard Corps’ power amid sanctions. Did President Donald Trump preserve the status quo on the Iran deal? (NY Times, Platts)

Turkey’s banking regulator dismissed reports that the country’s financial institutions face fines for violating U.S. sanctions on Iran. (Reuters)

Switzerland implemented a series of sanctions on North Korea. (Swissinfo)

Terrorism Finance:

Can bankers fight terrorism? (Foreign Affairs)

Transparency:

Panama Papers: Malta offered a $1.18 million reward for information on the person who killed a reporter investigating the leak. The EU ended its inquiry into the leak. (AP, WNYC, EuroNews)

Whistleblowers:

A U.K. judge sued to be included as a class of whistleblowers. (Guardian)

General Anti-Corruption:

The U.S. is seeking to seize assets it said were looted from disaster relief in the Philippines and placed in California. (OCWeekly)

China’s anti-graft czar is about to leave the agency as Beijing puts new laws in place. The country banned its notorious interrogation technique as part of the reforms. (SCMP, SCMP, Reuters)

Officials: Slovakia jailed government ministers for corruption for the first time. A fugitive former Mexican state official allegedly stole cows bought with government funds. (Bloomberg, BBC)

A South African corruption investigation continues. U.K. banks were exposed, regulators say. (Guardian, Fin24, TimesLive, BBC)

The Helsinki Commission fights kleptocracy. (KI)

U.S. investigations into Russian meddling in the U.S. election continue, as Mr. Trump pledged to pay staffers’ legal bills. (NBC, NY Times, Washington Post)

Taekwondo generated the most corruption complaints in Korean sports. (Korea Herald)

 

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  • Importance of Good Governance to Comprehensive Security

    Remarks to the 2014 OSCE Japan Conference on Sharing Experiences and Lessons Learned between the OSCE and Asian Partners for Cooperation in Order to Create a Safer, More Interconnected and Fairer World in the Face of Emerging Challenges Thank you, Mr. Ambassador, for your kind introduction. It’s a pleasure to be here today. I’d also like to thank our Japanese hosts for their very gracious arrangements for this important conference. I am here on behalf of U.S. Senator Ben Cardin, the Chairman of the Commission on Security and Cooperation in Europe, also known as the U.S. Helsinki Commission. The Helsinki Commission is unique in that the U.S. is the only OSCE participating State to create a distinct governmental agency to monitor member state compliance with OSCE commitments. One of the key priorities for our Commission is promoting good governance and combatting corruption, and we were pleased to see the tremendous progress achieved in this area in 2012 with the adoption of the Declaration on Strengthening Good Governance and Combatting Corruption, Money-Laundering and the Financing of Terrorism at the Dublin Ministerial. The Good Governance Declaration is comprehensive, laying out a strategy for the OSCE to combat corruption, strengthen civil society development and enforce accountability measures in the public and private sectors.  The declaration has given some new tools to the Economic and Environmental Coordinator’s office, which plays a critical role in strengthening stability and security in the OSCE region. And last year, the OSCE worked to promote sustainable energy solutions, advocate transparency and accountability, and to build capacity at all levels of society – government, private sector, and its citizens.  These achievements represent a foundation for further enhancing the 2nd Dimension. The U.S. and the EU have recently enacted laws that address the problem of transparency and accountability in the resource sector. In the United States, these laws were authored by the Chairman of the U.S. Helsinki Commission, Senator Ben Cardin. The laws require companies to publicly report payments they make to governments for oil, gas and mining extraction. The concept is that by injecting transparency into a traditionally opaque business environment, the ability of citizens to better understand the money flows allows them to then hold their governments accountable. The laws are meant to innovate the way business is done in this extremely important sector by breaking the cycle of instability and poverty in countries suffering from what is often called the “resource curse”. This innovation can help ensure that energy supplies are not disrupted, it gives citizens a tool to fight corruption, and it levels the playing field for companies. Now that the U.S. and the European Union are implementing these transparency rules, other markets with large resource extraction companies such as Australia and Canada are exploring similar requirements. And we expect that as these rules come online we will see other stock exchanges around the world follow suit. Corruption and lack of transparency in the extractive industries can fuel instability and even conflict, so it’s not hard to see why this type of transparency is catching on. The news is full of headlines on instability created by resource competition or corruption. And resource rich countries are consistently rated as some of the most difficult places to do business. In almost every case you can trace the root cause to the intractable corruption in that country. These transparency laws are the game changers that will help tilt the balance of power away from corrupt leaders. Transparency and accountability are going to make the job of extractive companies easier. They will work on a level playing field, they will work with more stable governments, and they will operate in more stable communities. And the OSCE has a role to play here as well. With the acknowledgment of the importance of combatting corruption in the Good Governance Declaration, the OSCE’s Economic and Environmental Dimension can serve as a valuable platform for increasing stability and security on energy related issues and, in particular, highlighting the link between security, energy, and the environment. As we look toward the Basel Ministerial and the Helsinki+40 process, we must build upon this work and examine how the 2nd Dimension can be further strengthened to advance solutions that build good governance. One of the ways that we can do this is to more actively engage civil society in the 2nd Dimension. We need to welcome multi-stakeholder groups, business groups and civil society leaders to the Economic and Environmental Forum and the Economic and Environmental Implementation meeting in order to generate greater awareness of good governance initiatives, develop new projects, and assess the effectiveness of participating States in implementing these commitments.    Let me close with a comment on Ukraine. I was there two weeks ago to observe the election. Despite the daily reports of violence, what we saw in the conduct of the election makes me hopeful that the newly elected government will be able to move the country forward. But what is painfully clear is that the corruption surrounding Ukraine’s energy sector was a key factor in fueling the protests that eventually led to the downfall of the government. Ukraine is not a big oil and gas producer itself, but it plays a major role as a transit country between Russia and Western Europe. Ukraine has started work on its candidacy for EITI but still has a long way to go so we are encouraging the new government to place a priority on getting that in place. The broader lesson from Ukraine is that secret deals lead to corruption. Corruption leads to economic stagnation.  Economic stagnation leads to political instability.  Political instability leads to violence and human rights abuses, and even opportunistic violations of sovereignty and territorial integrity. This is why we need to innovate the way we do business. This is why we need to focus on transparency and good governance. And this is why we need to empower civil society and media to hold their governments accountable. These are all areas where the OSCE has expertise and where the Asian Partners can provide assistance and experience. Thank you.

  • Dispatches From Moscow: Luke Harding’s Chilling Tale of KGB Harassment

    This briefing, moderated by Kyle Parker, Policy Advisor at the Commission on Security and Cooperation in Europe, addressed issues of human rights abuses in Russia in the context of the then imminent elections and widespread protests. The witness – Luke Harding, a journalist with the Guardian – remarked on Russia’s human rights abuses which blatantly ignore their commitments to the Helsinki Accords, citing anecdotal evidence. Harding, who had been the only Guardian correspondent to have actually reported from Russia since the 1917 Bolshevik Revolution, had suffered more at the hands of the FSB than any other Western correspondent, due to the fact that, during his four year tenure in Moscow, he comprehensively and repetitively busted Russia’s taboos that make it the security state it is today.

  • Moldova: The Growing Pains of Democracy

    In this briefing, which Commission Staffer Kyle Parker chaired, the focus was on the progress on the implementation of democratic institutions in the former Soviet Republic of Moldova. The briefing took place on the heels of the December elections in the region of Transnistria and what such elections may have portended for the future in terms of normalization of the conflict in the region that had existed for twenty years at the time of the briefing. To be sure, at the time that the briefing was held, Moldova still had a lot of progress to make regarding human rights commitments, particularly as far as corruption and human trafficking were concerned, two intertwined issues that had been of particular interest to the Commission. However, as far as human rights commitments are concerned, Moldova has led the countries of the commonwealth of independent states.

  • Human Rights Play on Magnitsky Murder

    Kyle Parker introduced the briefing, which followed a performance of the play “One Hour Eighteen,” based on the final moments in the life of Russian whistleblower Sergei Magnitsky. After exposing the largest tax fraud in Russian history, Magnitsky was wrongly arrested and tortured in prison. Six months later he became seriously ill and was consistently denied medical attention despite 20 formal requests. On the night of November 16, 2009, he went into critical condition, but instead of being treated in a hospital he was put in an isolation cell, chained to a bed, and beaten by eight prison guards for one hour and eighteen minutes. Sergei Magnitsky was 37 years old and left behind a wife and two children. Those responsible for this crime have yet to be punished and his story has become a global human rights cause and is emblematic of corruption, violence, and impunity in Russia. Parker was joined by Ury Urnov, director of “One Hour Eighteen,”  in discussing the play as an emblematic example of the devastating human cost of corruption and the lack of rule of law in Russia. The play juxtaposed the moving and chilling testimony and documents from Magnitsky's diary; a radio interview with his mother; two judges; a prison doctor and paramedic; an investigator; and a young ambulance paramedic.  

  • Good Governance

    Economic and Environmental Dimension Implementation Meeting Session 3: Good Governance Before I begin, I’d like to thank the panelists today for their excellent and informative presentations. The United States has viewed with keen interest the evolving discussions in recent years on what the OSCE’s priorities should be in the Economic and Environmental Dimension. As our friend and colleague Mr. Svilanovic pointed out during last year’s Vienna Review Conference, we appear to have come to an appreciation that good governance is the key linking theme across the entire second dimension. The Maastricht Strategy is very clear on this point: “Good public and corporate governance and strong institutions are essential foundations for a sound economy, which can attract investments, and thereby enable States to reduce poverty and inequality, to increase social integration and opportunities for all, and to protect the environment. Good governance at all levels contributes to prosperity, stability and security.” As we consider the implementation of our second dimension commitments, however, we should keep in mind why it is important to implement those commitments. The global economic downturn continues to put extreme pressure on people and governments across the OSCE region. To be sure, some countries have weathered the storm better than others. Still, no country can be forever immune to market forces, and even within those that have done well, there are always citizens left behind. This is certainly the case in the United States, and for this reason President Obama is focused intently on how best to put those Americans without a job back to work. We all know that trade and investment are critical drivers of economic growth. Indeed, recognizing this important reality, the Obama Administration has launched the National Export Initiative, which seeks to deepen our strategic trade relationships around the world, recognizing that 85 percent of world GDP growth will occur outside the United States in the coming few years. As we encourage more American businesses – large and small – to embrace international trade, seek opportunities in new markets, and make strategic investments that will lead to increased global trade flows, we are keenly aware of the challenges and costs posed by official corruption, weak institutions, and lack of respect for property rights, including intellectual property. Weak governance and lack of transparency constitute non-tariff barriers to trade, which we have committed ourselves to eliminating. Furthermore, the same issues that deter trade and investment also work against comprehensive security: a lack of transparency in governance leads to diminished confidence that problems and disputes will be addressed in a fair and impartial manner. Without trust and confidence in public institutions, there is little incentive for investors and companies to pursue trade deals or direct investment in those economies. The effect is stagnating economic performance, which, as we have seen in the past several months and years, can lead to political upheaval. The United States Government is deeply committed to fostering good governance and transparency in its political and economic institutions. President Obama has made the global fight against corruption a top priority. As he has noted, “In too many places, the culture of the bribe is a brake on development and prosperity. It discourages entrepreneurship, destroys public trust, and undermines the rule of law while stifling economic growth.” The real world costs of corruption and weak institutions should not be underestimated. The World Bank estimates that more than one trillion dollars in bribes are paid each year out of a global economy of approximately 30 trillion dollars. That's an incredible three percent of the world’s economy. In 2009, companies lost nearly $25 billion to companies willing to pay bribes in deals for which the outcome is known. And bribery is especially costly for small and medium-size enterprises (SMEs): a separate study has shown that up to 25 percent of SME operating capital in companies operating internationally is diverted to corruption. That is a staggering figure that illustrates how corruption diverts scarce resources to thoroughly unproductive ends. Corruption is a global problem that knows no borders. And that’s why corruption demands a truly global response – one that knows no limits on collaboration. The Obama Administration is doing its part to implement its obligations under the OECD Anti-Bribery Convention by enforcing the U.S. Foreign Corrupt Practices Act (FCPA) strictly and fairly. We are determined to ensure that U.S. businesses do not contribute to corruption in foreign markets. At the same time, we are determined to do what we can to assist them in the fight against foreign corruption, and against the high risk and significant costs of corruption in such markets. Regrettably, at this stage, the lack of enforcement of domestic bribery laws, and of foreign bribery laws by many nations that are Parties to the OECD Anti-Bribery Convention is extremely troubling and raises concerns about a lack of political will. Governments can and should prosecute both those who give bribes and those who receive them, both at home and abroad. And the OSCE should continue to encourage participating States to adopt and enforce rigorous anti-bribery regimes. Of course, the fight against corruption is not simply a law enforcement matter; rather it can also be a significant – if not the most significant – non-tariff barrier all companies face. Accordingly, the U.S. Department of Commerce and the International Trade Administration (or ITA) are committed to working with our trading partners to level the playing field and to promote transparent and corruption-free markets globally. Our work to promote clean and ethical business environments occurs at both the multilateral and bilateral level. At the multilateral level, the ITA is pressing its counterparts to lead by example and to implement comprehensive anti-corruption measures. In addition to our work through the OECD, the United States has been working diligently to persuade the G20 countries to adopt a comprehensive anti-corruption action plan, which includes a commitment focused on adoption and robust enforcement of anti-bribery laws, implementation of the UN Convention Against Corruption, greater engagement with the private sector, and support for transparency mechanisms, to name a few. Many of these commitments require our G20 partners to enact and implement new laws and preventive measures. The United States, at ITA’s initiative, in particular, took the lead on proposals relating to the private sector and also on whistleblower protection, within the G20. In the United States, whistleblowers play a crucial role in helping to enforce anti-corruption law. This principle is also embodied in international conventions. Articles 12 and 13 of the UN Convention require States Parties to prevent corruption in the private sector and promote the fight against corruption with the business community and civil society. Unless governments can protect whistleblowers, it is unlikely that they can identify or address systemic causes of corruption. The United States believes robust whistleblower protection should be an essential part of any good governance initiative in the OSCE, and I was encouraged to hear Ambassador O’Leary indicate that this will be an area of focus under the Irish Chairmanship. The U.S. Department of Commerce has also been committed to fostering strong private sector integrity as an integral part of promoting good governance in markets worldwide. Companies are global corporate citizens, and as such, can work collectively and with governments to foster trust, and promote transparency. I hope that some our work may provide a useful model for the OSCE to consider as it looks to embrace good governance and anti-corruption as a priority for the second dimension, a goal we fully support, and which I am personally committed to supporting. For example, the ITA has championed business ethics and corporate governance reform since the early 1990s, following the fall of the Berlin Wall. Our Business Ethics Manual has been translated into Chinese, Spanish and Russian and is still one of the most widely used resources on this important topic. We have partnered with business associations and chambers of commerce to develop collective action and business ethics program in many markets. Our work on business ethics has grown. This past year, the ITA has focused on trying to heighten awareness of good governance, transparency and business ethics in sectors of vital importance to many economies – by taking a “sectoral” approach to combating corruption and promoting good business practice, the challenge of dealing with corruption becomes less daunting. The ethical issues specific to different industries vary greatly – and there is no one-size-fits-all approach to the problem. Within the G20, for example, the United States, at the initiative of the U.S. Department of Commerce, has taken the lead in calling for the G20 to endorse additional sectoral approaches to fighting corruption, beyond the Extractive Industries Transparency Initiative (EITI). We have asked G20 governments, for example, to consider supporting the Construction Sector Transparency Initiative (COST) – a new multistakeholder initiative, developed by the World Bank. COST uses similar approaches to EITI to promote greater transparency in public infrastructure projects and government procurement. I hope that the OSCE might similarly consider COST and other multistakeholder approaches to promoting transparency under the Irish chairmanship. Within APEC, the ITA has focused on developing new ethical principles for key sectors within the APEC region. I am pleased to report that under the APEC SME working group, we have coordinated a project with APEC countries and businesses to develop principles of business ethics in the construction, medical devices and biopharmaceutical sectors. These voluntary principles are meant to be used by businesses and trade associations – large andwithin the OSCE framework and the EEDIM, we might also consider focusing on business ethics in specific sectors of interest to all of our economies. I want to close by suggesting some activities to take the theme of good governance and transparency forward. In addition to encouraging the OSCE to formally endorse the Extractive Industries Transparency Initiative—a move that would send an important signal about this body’s commitment to the principles of good governance and transparency—the U.S. encourages us to explore whether there are additional sectoral initiatives that merit support from the OSCE, including the Construction Sector Transparency Initiative. The United States Government also strongly supports the Irish Chair’s goal to develop a Statement or Declaration of Transparency Principles to help guide our governments in their future activities. I want to encourage us to consider new models of bilateral cooperation to promote good governance such as the model Mr. Murray just discussed, leading to a public-private initiative in the Russian power generation sector. We at the U.S. Department of Commerce are working closely with the Center for Black Sea/Caspian Studies at American University to potentially convene a conference in May of next year that would seek to address the challenge of developing mechanisms to ensure good governance and transparency, while also balancing the goals of protecting national security and accelerating economic development faced by the countries of the Caucasus and Central Asia, as they seek to assert their role as a gateway between Europe and Asia. In addition, the conference will also focus on specific market access challenges to regional integration and economic development in the Caucasus and Central Asia such as transparency in Government procurement and privatization, and trade facilitation challenges, including customs and lack of regional harmonization. It is our hope that the OSCE will join us for this event – focused on critical areas such as transport and infrastructure – to work on tangible ideas for projects and collaborations in the OSCE region. We look forward with great interest to the 20th Economic and Environmental Forum, where we will delve deeper into all the facets of good governance. We also thank the Lithuanian Chairman-in-Office for  ensuring that their draft Ministerial Council decision on Energy Security incorporates transparency in the energy sector – in our view, considering the vital role that energy plays in modern economic life, there can be no confidence, and thus no security, without energy transparency. In the year ahead, we envision an even broader focus on transparency principles across the entire spectrum of economic and environmental activities, and will work with all of our colleagues in the OSCE to make that vision a reality. Thank you, Mr. Moderator.  

  • Commissioner Camuñez's Remarks on Good Governance

    Economic and Environmental Dimension Implementation Meeting Session 3: Good Governance Before I begin, I’d like to thank the panelists today for their excellent and informative presentations. The United States has viewed with keen interest the evolving discussions in recent years on what the OSCE’s priorities should be in the Economic and Environmental Dimension.  As our friend and colleague Mr. Svilanovic pointed out during last year’s Vienna Review Conference, we appear to have come to an appreciation that good governance is the key linking theme across the entire second dimension.  The Maastricht Strategy is very clear on this point: “Good public and corporate governance and strong institutions are essential foundations for a sound economy, which can attract investments, and thereby enable States to reduce poverty and inequality, to increase social integration and opportunities for all, and to protect the environment.  Good governance at all levels contributes to prosperity, stability and security.”  As we consider the implementation of our second dimension commitments, however, we should keep in mind why it is important to implement those commitments. The global economic downturn continues to put extreme pressure on people and governments across the OSCE region.  To be sure, some countries have weathered the storm better than others.  Still, no country can be forever immune to market forces, and even within those that have done well, there are always citizens left behind.  This is certainly the case in the United States, and for this reason President Obama is focused intently on how best to put those Americans without a job back to work.  We all know that trade and investment are critical drivers of economic growth.  Indeed, recognizing this important reality, the Obama Administration has launched the National Export Initiative, which seeks to deepen our strategic trade relationships around the world, recognizing that 85 percent of world GDP growth will occur outside the United States in the coming few years.  As we encourage more American businesses – large and small – to embrace international trade, seek opportunities in new markets, and make strategic investments that will lead to increased global trade flows, we are keenly aware of the challenges and costs posed by official corruption, weak institutions, and lack of respect for property rights, including intellectual property. Weak governance and lack of transparency constitute non-tariff barriers to trade, which we have committed ourselves to eliminating.  Furthermore, the same issues that deter trade and investment also work against comprehensive security: a lack of transparency in governance leads to diminished confidence that problems and disputes will be addressed in a fair and impartial manner.  Without trust and confidence in public institutions, there is little incentive for investors and companies to pursue trade deals or direct investment in those economies.  The effect is stagnating economic performance, which, as we have seen in the past several months and years, can lead to political upheaval.    The United States Government is deeply committed to fostering good governance and transparency in its political and economic institutions.  President Obama has made the global fight against corruption a top priority.  As he has noted, “In too many places, the culture of the bribe is a brake on development and prosperity.  It discourages entrepreneurship, destroys public trust, and undermines the rule of law while stifling economic growth.”    The real world costs of corruption and weak institutions should not be underestimated.  The World Bank estimates that more than one trillion dollars in bribes are paid each year out of a global economy of approximately 30 trillion dollars.  That's an incredible three percent of the world’s economy.   In 2009, companies lost nearly $25 billion to companies willing to pay bribes in deals for which the outcome is known.  And bribery is especially costly for small and medium-size enterprises (SMEs): a separate study has shown that up to 25 percent of SME operating capital in companies operating internationally is diverted to corruption.  That is a staggering figure that illustrates how corruption diverts scarce resources to thoroughly unproductive ends. Corruption is a global problem that knows no borders.  And that’s why corruption demands a truly global response – one that knows no limits on collaboration.  The Obama Administration is doing its part to implement its obligations under the OECD Anti-Bribery Convention by enforcing the U.S. Foreign Corrupt Practices Act (FCPA) strictly and fairly.  We are determined to ensure that U.S. businesses do not contribute to corruption in foreign markets.  At the same time, we are determined to do what we can to assist them in the fight against foreign corruption, and against the high risk and significant costs of corruption in such markets.   Regrettably, at this stage, the lack of enforcement of domestic bribery laws, and of foreign bribery laws by many nations that are Parties to the OECD Anti-Bribery Convention is extremely troubling and raises concerns about a lack of political will.  Governments can and should prosecute both those who give bribes and those who receive them, both at home and abroad.  And the OSCE should continue to encourage participating States to adopt and enforce rigorous anti-bribery regimes. Of course, the fight against corruption is not simply a law enforcement matter; rather it can also be a significant – if not the most significant – non-tariff barrier all companies face.  Accordingly, the U.S. Department of Commerce and the International Trade Administration (or ITA) are committed to working with our trading partners to level the playing field and to promote transparent and corruption-free markets globally.  Our work to promote clean and ethical business environments occurs at both the multilateral and bilateral level.  At the multilateral level, the ITA is pressing its counterparts to lead by example and to implement comprehensive anti-corruption measures.   In addition to our work through the OECD, the United States has been working diligently to persuade the G20 countries to adopt a comprehensive anti-corruption action plan, which includes a commitment focused on adoption and robust enforcement of anti-bribery laws, implementation of the UN Convention Against Corruption, greater engagement with the private sector, and support for transparency mechanisms, to name a few.  Many of these commitments require our G20 partners to enact and implement new laws and preventive measures.   The United States, at ITA’s initiative, in particular, took the lead on proposals relating to the private sector and also on whistleblower protection, within the G20.  In the United States, whistleblowers play a crucial role in helping to enforce anti-corruption law.  This principle is also embodied in international conventions.  Articles 12 and 13 of the UN Convention require States Parties to prevent corruption in the private sector and promote the fight against corruption with the business community and civil society.  Unless governments can protect whistleblowers, it is unlikely that they can identify or address systemic causes of corruption.  The United States believes robust whistleblower protection should be an essential part of any good governance initiative in the OSCE, and I was encouraged to hear Ambassador O’Leary indicate that this will be an area of focus under the Irish Chairmanship.   The U.S. Department of Commerce has also been committed to fostering strong private sector integrity as an integral part of promoting good governance in markets worldwide.  Companies are global corporate citizens, and as such, can work collectively and with governments to foster trust, and promote transparency.  I hope that some our work may provide a useful model for the OSCE to consider as it looks to embrace good governance and anti-corruption as a priority for the second dimension, a goal we fully support, and which I am personally committed to supporting. For example, the ITA has championed business ethics and corporate governance reform since the early 1990s, following the fall of the Berlin Wall.  Our Business Ethics Manual has been translated into Chinese, Spanish and Russian and is still one of the most widely used resources on this important topic.  We have partnered with business associations and chambers of commerce to develop collective action and business ethics program in many markets.   Our work on business ethics has grown.  This past year, the ITA has focused on trying to heighten awareness of good governance, transparency and business ethics in sectors of vital importance to many economies – by taking a “sectoral” approach to combating corruption and promoting good business practice, the challenge of dealing with corruption becomes less daunting.  The ethical issues specific to different industries vary greatly – and there is no one-size-fits-all approach to the problem.  Within the G20, for example, the United States, at the initiative of the U.S. Department of Commerce, has taken the lead in calling for the G20 to endorse additional sectoral approaches to fighting corruption, beyond the Extractive Industries Transparency Initiative (EITI).  We have asked G20 governments, for example, to consider supporting the Construction Sector Transparency Initiative (COST) – a new multistakeholder initiative, developed by the World Bank.  COST uses similar approaches to EITI to promote greater transparency in public infrastructure projects and government procurement.  I hope that the OSCE might similarly consider COST and other multistakeholder approaches to promoting transparency under the Irish chairmanship.     Within APEC, the ITA has focused on developing new ethical principles for key sectors within the APEC region.  I am pleased to report that under the APEC SME working group, we have coordinated a project with APEC countries and businesses to develop principles of business ethics in the construction, medical devices and biopharmaceutical sectors.  These voluntary principles are meant to be used by businesses and trade associations – large and small – to guide their ethical interactions with public officials and institutions.   I hope that within the OSCE framework and the EEDIM, we might also consider focusing on business ethics in specific sectors of interest to all of our economies.  I want to close by suggesting some activities to take the theme of good governance and transparency forward.  In addition to encouraging the OSCE to formally endorse the Extractive Industries Transparency Initiative—a move that would send an important signal about this body’s commitment to the principles of good governance and transparency—the U.S. encourages us to explore whether there are additional sectoral initiatives that merit support from the OSCE, including the Construction Sector Transparency Initiative.  The United States Government also strongly supports the Irish Chair’s goal to develop a Statement or Declaration of Transparency Principles to help guide our governments in their future activities. I want to encourage us to consider new models of bilateral cooperation to promote good governance such as the model Mr. Murray just discussed, leading to a public-private initiative in the Russian power generation sector.   We at the U.S. Department of Commerce are working closely with the Center for Black Sea/Caspian Studies at American University to potentially convene a conference in May of next year that would seek to address the challenge of developing mechanisms to ensure good governance and transparency, while also balancing the goals of protecting national security and accelerating economic development faced by the countries of the Caucasus and Central Asia, as they seek to assert their role as a gateway between Europe and Asia.  In addition, the conference will also focus on specific market access challenges to regional integration and economic development in the Caucasus and Central Asia such as transparency in Government procurement and privatization, and trade facilitation challenges, including customs and lack of regional harmonization.  It is our hope that the OSCE will join us for this event – focused on critical areas such as transport and infrastructure – to work on tangible ideas for projects and collaborations in the OSCE region. We look forward with great interest to the 20th Economic and Environmental Forum, where we will delve deeper into all the facets of good governance.  We also thank the Lithuanian Chairman-in-Office for ensuring that their draft Ministerial Council decision on Energy Security incorporates transparency in the energy sector – in our view, considering the vital role that energy plays in modern economic life, there can be no confidence, and thus no security, without energy transparency.  In the year ahead, we envision an even broader focus on transparency principles across the entire spectrum of economic and environmental activities, and will work with all of our colleagues in the OSCE to make that vision a reality. Thank you, Mr. Moderator.

  • Commissioner Camuñez's Opening Statement at the Economic and Environmental Dimension Implementation Meeting

    Economic and Environmental Dimension Implementation Meeting Opening Remarks On behalf of the United States, I would like to thank the Lithuanian Chairman-in-Office, Secretary General Zannier, Coordinator for Economic and Environmental Activities Svilanović, and of course our Austrian hosts for convening this inaugural Economic and Environmental Dimension Implementation Meeting and for providing a warm welcome to Vienna. It is an honor to be here today as head of the U.S. delegation to the OSCE, representing the U.S. Government in my capacity as an Assistant Secretary of Commerce for Market Access and Compliance (MAC) within the International Trade Administration, and as a Commissioner to the U.S. Helsinki Commission. As a Commerce Department Assistant Secretary for Market Access and Compliance, I am responsible for helping lead the effort to open new markets for U.S. companies, identifying and eliminating market access challenges such as non-tariff barriers to trade, and helping to monitor and enforce U.S. trade agreements and commitments. The work of the Environmental and Economic Dimension, especially that which focuses on transparency of markets and good governance, is closely aligned with the work we undertake in the International Trade Administration. I am here today to deliver the message that the U.S. Government is highly committed to making the second dimension even more effective and dynamic, and that we will do our part in ensuring that our economic and environmental commitments receive the same level of attention and scrutiny that those in the political-military and human dimensions currently enjoy. I will try to keep my remarks brief, but I think it is critical that we take a close look at the economic and environmental commitments as they were spelled out in the 2003 Maastricht Strategy. We still see Maastricht as the key blueprint for moving forward on all the  commitments that have come before, and in particular, note a number of areas where we could pursue significant, substantive action over the next few years to achieve measurable progress. Our commitments on economic cooperation have at their core the idea of connectedness to regional and global markets, to trade and investment networks, and to energy and transportation infrastructure, as a way to address emerging economic challenges and threats. In light of the global economic downturn, it is vital that we recommit ourselves to increasing cooperation through a variety of measures, including improving corporate governance and public management, eliminating unnecessary and discriminatory barriers to trade, continuing  to harmonize our regulations and standards where appropriate, taking further steps to combat financial crimes like bribery and money laundering, and increasing confidence through the incorporation of transparency principles in all of our public and private ventures. At the same time, in view of our progress made this year worldwide on  empowering women in the economy, first at the Invest for the Future Conference in Istanbul in January and most recently at the APEC Summit in San Francisco, we believe it is important to recognize the critical connection between women and strong economies, and to remove all barriers that prevent women from full and equal participation in the economy. I would like to focus my comments this morning on the subject of good governance, however. We have committed ourselves time and again to “good governance,” and while progress has been made, much work remains to be done. As stated in the 2003 Maastricht Strategy, achieving good governance will require a comprehensive, long-term strategic approach. In the view of the U.S. Government, good governance is the core theme within the economic and environmental dimension, and we are pleased that next year’s Forum will address the topic in a broad and detailed way. When we speak of good governance, we speak about governments having both the propensity and the competence to manage complex political and economic systems in a fair, fully inclusive, and transparent way. Anti-corruption is part of it, but not the whole picture. It’s about having transparent, clear and predictable legislative and regulatory frameworks that foster efficient and low-cost business formation and development, and most importantly allow and even encourage robust participation in the political and economic spheres by civil society. Let me say a few words about my agency’s past and current work in this area, reserving greater details and the highlights of a new proposal for Session III tomorrow. From 1998-2008, the U.S. Department of Commerce launched a Good Governance Program, focused on partnering with the public and private sectors in the countries of the former Soviet Union and Central-Eastern Europe. This work, focused on promoting sound corporate governance and business ethics, culminated in the publication of a Business Ethics Manual, a Commercial Dispute Resolution Handbook, and a Corporate Governance Manual translated into several languages and disseminated widely throughout the OSCE region. Today, we continue to work on numerous initiatives around the world, within multilateral fora such as APEC and the G20, which involve OSCE members, promoting consensus based principles focused on anticorruption. We have taken our business ethics work and branched out into new regions including Asia and Latin America. Despite a clear understanding of its importance, the lack of good governance and systemic corruption remain some of the single most important market access challenges for companies engaged in trade around the world. This is especially true for small and medium sized enterprises, which are the engine of economic growth and innovation throughout the world. The United States believes that addressing these issues can only lead to greater investment, economic prosperity and security. Over the next three days, we will discuss OSCE support for the Extractive Industries Transparency Initiative (EITI). I am pleased to report that the U.S. Department of Commerce played an important role in supporting the creation of the EITI in its initial phase. The OSCE now has a chance to follow in the steps of the G8 and G20, by endorsing the EITI, and I applaud the governments that have preceded the United States as implementers. The EITI is a great example of how shared commitments towards good governance and transparency in a vital sector to many countries can work and build sustained momentum and engagement between the private sector, governments and civil society. Tomorrow I will share more concrete information about the work that the U.S. Government and my Department have undertaken to promote good governance and to combat corruption. I am pleased to have an expert on business ethics and anti-corruption in the energy sector, as part of the U.S. delegation. Mr. Matthew Murray runs the Center for Business Ethics and Corporate Governance in St. Petersburg, Russia, and he’ll speak to you later about a good governance initiative involving public and private stakeholders in the power generation sector in Russia, which may serve as a model for similar programs in other OSCE countries. I am also pleased to have Kate Watters of Crude Accountability joining the U.S. delegation, who will provide some examples of how transparency is a critical component of enhancing security in the environmental sphere. A month ago, the Economic and Environmental Forum discussed the concept of sustainability and where efforts to promote sustainable practices stand in our region. Those discussions remind us that our commitments on sustainable development encompass a broad spectrum of activities related to efficiency, sound resource management, and the full involvement of all stakeholders in decision-making. Just to cite an example from the Prague Forum, we recognize that in order to further develop economies and markets in such varied areas as the Black Sea region and Central Asia we will need to address several problems: improving the efficiency of border crossings and building construction, tilting the energy mix towards cleaner fuels, harmonizing standards and practices across the region, and, just as critically, ensuring broad involvement of civil society in the decision-making on project proposal, design, and implementation. One thing that sets the OSCE apart from many other organizations addressing the environment is recognition of the clear connection between the environment and security. We recognize that many environmental disasters cannot be predicted or prevented. At the same time, greater transparency – through information sharing and civil society engagement – about possible security risks stemming from the environment will make it possible to prevent or mitigate more disasters, both natural and man-made. We also must recognize that failure to protect the environment is itself a security risk, putting increased pressure on populations facing dwindling resources of clean air and water, arable farmland, and adequate energy. Colleagues, The next three days provide a critical juncture and platform for finding consensus on measures that will improve our implementation of the OSCE commitments in the economic and environmental dimension. The Vilnius Ministerial is only a month and a half away; now is the time to summon the political will to find a way forward. We look forward to building consensus on decisions on energy security, to include good governance and transparency, and we welcome constructive dialogue on additional measures proposed on confidence-building initiatives and sustainable transport. We view these elements, along with sustainable development and protecting the environment, as the cornerstones of the Maastricht Strategy, and will be speaking about these over the next several days. Just a month ago, we found some convergence of opinion on discrete aspects of the second dimension. Let us expand that convergence to the entire dimension as we review our economic and environmental commitments over the next few days, with a view toward substantive deliverables for Vilnius. Thank you, Mr. Moderator.

  • Senators Cardin and McCain Engage in a Colloquy on the Magnitsky Act

    Mr. McCAIN. Madam President, I ask unanimous consent that the order for the quorum call be rescinded. The PRESIDING OFFICER. Without objection, it is so ordered. The Senator from Arizona is recognized. Mr. McCAIN. I thank the Chair. Mr. President, in a few minutes my colleague from Maryland, Senator Cardin, will be introducing a bill which I am a cosponsor of, along with a large bipartisan group of our colleagues. I wish to emphasize at the outset that some may characterize this legislation as anti-Russian. In fact, I believe it is pro-Russian. It is pro the people of Russia. It is pro the people who stand up for human rights and democracy in that country which, unfortunately, seems to be sadly deprived of. This legislation, as my colleague and friend Senator Cardin will describe, requires the Secretary of State, in consultation with the Secretary of the Treasury, to publish a list of each person whom our government has reason to believe was responsible for the detention, abuse, or death of Sergei Magnitsky ; participated in efforts to conceal the legal liability for these crimes; committed those acts of fraud that Magnitsky uncovered; is responsible for extrajudicial killings, torture, or other gross violations of human rights committed against individuals seeking to expose illegal activities in Russia or exercise other universally recognized human rights. Second, the individuals on that list would become the target of an array of penalties, among them, ineligibility to receive a visa to travel. They would have their current visas revoked, their assets would be frozen that are under U.S. jurisdiction, and U.S. financial institutions would be required to audit themselves to ensure that none of these individuals are able to bank excess funds and move money in the U.S. financial system. I guess the first question many people will be asking is who was Sergei Magnitsky ? Who was this individual who has aroused such outrage and anger throughout the world? He was a tax attorney. He was a tax attorney working for an international company called Hermitage Capital that had invested in Russia. He didn't spend his life as a human rights activist or an outspoken critic of the Russian Government. He was an ordinary man. But he became an extraordinary champion of justice, fairness, and the rule of law in Russia where those principles, frankly, have lost meaning. What Sergei Magnitsky did was he uncovered a collection of Russian Government officials and criminals who were associated with the Russian Government officials who colluded to defraud the Russian state of $230 million. The Russian Government in turn blamed the crime on Heritage Capital and threw Magnitsky in prison in 2008. Magnitsky was detained for 11 months without trial. Russian officials, especially from the Interior Ministry, pressured Magnitsky to deny what he had uncovered--to lie and to recant. He refused. He was sickened by what his government had done and he refused to surrender principle to brute power. As a result, he was transferred to increasingly more severe and more horrific prison conditions. He was forced to eat unclean food and water. He was denied basic medical care as his health worsened. In fact, he was placed in even worse conditions until, on November 16, 2009, having served 358 days in prison, Sergei Magnitsky died. He was 37 years old. Sergei Magnitsky's torture and murder--let's call it what it really was--is an extreme example of a problem that is unfortunately all too common and widespread in Russia today: the flagrant violations of the rule of law and basic human rights committed by the Russian Government itself, along with its allies. I note the presence of my colleague and lead sponsor of this important legislation. I hope in his remarks perhaps my friend from Maryland would mention the latest in the last few days which was the affirmation of the incredible sentence on Mr. Mikhail Khodorkovsky and his associate which is, in many ways, tantamount to a death sentence; again, one of these blatant abuses of justice and an example of the corruption that exists at the highest level of government. I wish to say again I appreciate the advocacy of my colleague from Maryland and his steadfast efforts on behalf of human rights in Russia, Belarus, and other countries. It has been a great honor to work with him and for him in bringing this important resolution to the floor of the Senate. I ask unanimous consent that at the appropriate time, the Senator from Maryland and I be allowed to engage in a colloquy. The PRESIDING OFFICER. Without objection, it is so ordered. The Senator from Maryland. Mr. CARDIN. Mr. President, let me thank Senator McCain, not just for taking time for this colloquy concerning Mr. Magnitsky but for his longstanding commitment to justice issues, human rights issues, and the values the United States represents internationally. We have had a long, proud, bipartisan, and, most importantly, successful record of promoting basic American values such as democratic governance and the rule of law around the world. Engaging the countries of the Eastern Bloc in matters such as respect for human rights was critical to winning the cold war. We will never know how many lives were improved and even saved due to instruments such as the Helsinki Final Act and the Jackson-Vanik amendment. These measures defined an era of human rights activism that ultimately pried open the Iron Curtain and brought down the Wall. Thankfully, the cold war is over and we have a stronger relationship, both at the governmental and societal levels, with countries in Eastern Europe. But, sadly, internationally recognized rights and freedoms continue to be trampled and, in many cases, with absolute impunity. With the possibility of Russia's accession to the World Trade Organization, and the Presidents of the United States and Russia meeting in France, ours is a timely discussion. Last week, I joined my distinguished colleague, the Senator from Arizona, and 14 other Senators from both parties to introduce the Sergei Magnitsky Rule of Law Accountability Act--a broad bill to address what the respected watchdog Transparency International dubbed a ``systematically corrupted country'' and to create consequences for those who are currently getting away with murder. Actions always speak louder than words. The diplomatic manner of dealing with human rights abuses has frequently been to condemn the abusers, often publicly, with the hope that these statements will be all they need to do. They say oh, yes, we are against these human rights violations. We are for the rule of law. We are for people being able to come forward and tell us about problems and be able to correct things. They condemn the abusers, but they take no action. They think their words will be enough. Well, we know differently. We know what is happening today in Russia. We know the tragedy of Sergei Magnitsky was not an isolated episode. This is not the only time this has happened. My colleague from Arizona mentioned the Mikhail Khodorkovsky case. Mr. Khodorkovsky is today in prison with even a longer sentence. Why? Because he had the courage to stand up and oppose the corrupt system in Russia and something should be done about it. That is why he is in prison, and that is wrong. So it is time we do something about this and that we make it clear that action is needed. For too long, the leaders in Russia have said we are going to investigate what happened to Sergei Magnitsky . We think it is terrible he died in prison without getting adequate medical care. As Senator McCain pointed out, here is a person whose only crime was to bring to the proper attention of officials public corruption within Russia. As a result of his whistleblowing, he was arrested and thrown in jail and died in jail. He was tortured. That cannot be allowed, to just say, Oh, that is terrible. We know the people who were responsible. In some cases they have been promoted in their public positions. Well, it is time for us to take action. That is why we have introduced this legislation. While this bill goes far beyond the tragic experiences of Sergei Magnitsky , it does bear his name, so let me refresh everyone's recollection with some of the circumstances concerning his death. I mention this because some might say, why are we talking about one person? But as the Soviet dictator Joseph Stalin said, ``One death is a tragedy; one million is a statistic.'' I rarely agree with Dictator Stalin, but we have to put a human face on the issue. People have to understand that these are real people and real lives that have been ruined forever as a result of the abuses within Russia. Sergei was a skilled tax lawyer who was well known in Moscow among many Western companies, large and small. In fact, he even did some accounting for the National Conference on Soviet Jewry. Working at the American law firm of Firestone Duncan, Sergei uncovered the largest known tax fraud in modern Russian history and blew the whistle on the swindling of his fellow citizens by corrupt officials. For that he was promptly arrested by the subordinates of those he implicated in the crime. He was held under torturous conditions in detention for nearly a year without trial or visits from family. He developed severe medical complications which went deliberately untreated, and he died on November 16, 2009, alone in an isolation cell while prison doctors waited outside his door. Sergei was 37 years old. He left behind a wife, two sons, a dependent mother, and so many friends. Shortly after his death, Philip Pan of the Washington Post wrote: Magnitsky's complaints, made public by his attorneys as he composed them, went unanswered while he lived. But in a nation where millions perished in the Soviet gulag, the words of the 37-year-old tax lawyer struck a nerve after he died ..... his descriptions of the squalid conditions he endured have been splashed on the front pages of newspapers and discussed on radio and television across the country, part of an outcry even his supporters never expected. I think Senator McCain and I would agree, there is a thirst for democracy around the world. People in Russia want more. They want freedom. They want accountability. They want honest government officials. They are outraged by what happened to Sergei Magnitsky . I would point out just last week I met with a leader of the Russian business community who came here and traveled at some risk, I might say. Just visiting me was a risk. We have people from Russia who are being questioned because they come and talk to us. But he said to me that what happened here needs to be answered by the Russian authorities. He understands why we are introducing this legislation. A year after his death, and with no one held accountable, and some of those implicated even promoted and decorated, The Economist noted: At the time, few people outside the small world of Russian investors and a few human-rights activists had heard of Mr. Magnitsky . A year later, his death has become a symbol of the mind-boggling corruption and injustice perpetrated by the Russian system, and the inability of the Kremlin to change it. Regrettably, we know Sergei's case, egregious as it is, is not isolated. Human rights abuses continue unpunished and often unknown across Russia today. To make this point more clear, let's look at another example far outside the financial districts of Moscow and St. Petersburg in the North Caucasus in southern Russia where Chechen leader, Ramzan Kadyrov, condones and oversees massive violations of human rights, including violations of religious freedom and the rights of women. His militia also violates international humanitarian laws. As of this April, the European Court of Human Rights has ruled against Russia in 186 cases concerning Chechnya, most involving civilians. So Sergei Magnitsky's case is not an isolated case of abuse by the Russian authorities. There has been a systematic effort made to deny people their basic human rights, including one individual, Natalia Estemirova, who personally visited my office at the Helsinki Commission. She was a courageous human rights defender who was brutally assassinated. So it is time for Russia to take action. But we cannot wait; we need to take action. Mr. McCAIN. Will the Senator yield for a question? Mr. CARDIN. I yield back to my colleague. Mr. McCAIN. First, I thank my colleague from Maryland for a very eloquent and, I think, very strong statement, to which I can add very little. But isn't it true, I ask my friend, that this Magnitsky case and the Khodorkovsky case, which I would like for us to talk a little bit more about, are not isolated incidents? In other words, this is the face of the problem in Russia today. As the Senator mentioned, in its annual index of perceptions of corruption, Transparency International ranked Russia 154th out of 178 countries--perceived as more corrupt than Pakistan, Yemen, and Zimbabwe. The World Bank considers 122 countries to be better places to do business than Russia. One of those countries is Georgia, which the World Bank ranks as the 12th best country to do business. In other words, isn't it true in the Magnitsky case, it is what has been taking place all across Russia, including this incredible story of Khodorkovsky, who was one of the wealthiest men in Russia, one of the wealthiest oligarchs who rebelled against this corruption because he saw the long-term consequences of this kind of corruption and was brought to trial, convicted, and then, when his sentence was completed, they charged him again? Talk about a corrupt system, isn't it true that Vladimir Putin said he should ``sit in jail,'' and we now know that the whole trial was rigged, as revealed by people who were part of the whole trial? In other words, isn't it true, I would ask my friend from Maryland, that what we are talking about is one human tragedy, but it is a tragedy that is unfolding throughout Russia that we do not really have any knowledge of? And if we allow this kind of abuse to go on unresponded to, then, obviously, we are abrogating our responsibilities to the world; isn't that true? Mr. CARDIN. I say to Senator McCain, you are absolutely right. This is not isolated. Magnitsky is not an isolated case of a lawyer doing his job on behalf of a client and being abused by the authorities. We have a lot of examples of lawyers trying to do their jobs and being intimidated and their rights violated. But in Mr. Khodorkovsy's case, we have a business leader who was treated the same way just because he was a successful business leader. Even worse, he happened to be an opponent of the powers in the Kremlin. So we are now seeing, in Russia, where they want to quell opposition by arresting people who are just speaking their minds, doing their business legally, putting them in prison, trying them, and in the Khodorkovsky case actually increasing their sentences the more they speak out against the regime. That is how authoritarian they want to be and how oppressive they are to human rights. But I could go further. If one is a journalist in Russia, and they try to do any form of independent journalism, they are in danger of being beaten, being imprisoned, being murdered. It is very intimidating. The list goes on and on. Mr. McCAIN. Could I ask my colleague, what implications, if any, does the Senator from Maryland believe this should have on the Russian entry into the World Trade Organization? Mr. CARDIN. Well, it is very interesting, I say to Senator McCain. I just came from a Senate Finance Committee hearing, and we were talking about a free-trade agreement. I am for free-trade agreements. I think it makes sense. It is funny, when a country wants to do trade with the United States, they all of a sudden understand they have to look at their human rights issues. I think all of us would like to see Russia part of the international trade community. I would like to see Russia, which is already a member of a lot of international organizations, live up to the commitments they have made in joining these international organizations. But it is clear to me that Russia needs to reform. If we are going to have business leaders traveling to Russia in order to do business, I want to make sure they are safe in Russia. I want to make sure they are going to get the protection of the rule of law in Russia. I want to make sure there are basic rights that the businesspeople in Russia and the United States can depend upon. So, yes, I understand that Russia would like to get into the WTO. We have, of course, the Jackson-Vanik amendment that still applies. I understand the origin of that law, and I understand what needs to change in order for Russia to be able to join the World Trade Organization. But I will tell you this: The best thing that Russia can do in order to be able to enter the international trade regime is to clean up its abuses in its own country, to make clear it respects the rule of law; that businesspeople will be protected under the rule of law and certainly not imprisoned and tortured, as in the cases of Mr. Khodorkovsky and Mr. Magnitsky . We do not want to see that type of conduct. If Russia would do that, if they would reform their systems, then I think we would be a long way toward that type of integration and trade. Mr. McCAIN. I thank my colleague from Maryland for an eloquent statement about the situation as regards Russia. I thank him, and I can assure my colleague from Maryland that, as we speak, this will provide--and this legislation which he has introduced, will provide--some encouragement to people who in Russia now, in some cases, have lost almost all hope because of the corruption of the judicial system, as well as other aspects of the Russian nation. We all know that no democracy can function without the rule of law; and if there are ever two examples of the corruption of the rule of law, it is the tragedy of Sergei Magnitsky and, of course, Mr. Khodorkovsky, who still languishes in prison; who, in his words, believes he--by the extension of his prison sentence--may have been given a death sentence. So I thank my colleague from Maryland. Mr. CARDIN. Will my colleague yield for just one final comment? I think the Senator is right on target as to what he has said. I appreciate the Senator bringing this to the attention of our colleagues in the Senate. I will respond to one other point because I am sure my colleague heard this. Some Russian officials say: Why are we concerned with the internal affairs of another country? I just want to remind these Russian officials, I want to remind my colleagues here, that Russia has signed on to the Helsinki Final Act. They did that in 1975, and they have agreed to the consensus document that was issued in Moscow in 1991 and reaffirmed just last year with the heads of state meeting in Astana, Kazakhstan, just this past December. I am going to quote from that document: The participating States-- Which Russia is a participating state-- emphasize that issues relating to human rights, fundamental freedoms, democracy and the rule of law are of international concern, as respect for these rights and freedoms constitutes one of the foundations of international order. They categorically and irrevocably declared that the commitments undertaken in the field of the human dimension are matters of direct and legitimate concern to all participating States-- The United States is a participating state-- and do not belong exclusively to the internal affairs of the State concerned. Mr. McCAIN. That was a statement by the Government of Russia? Mr. CARDIN. That was a statement made by the 56 states of the OSCE at a meeting of the Heads of State, which happens about every 10 years. It just happened to have happened last year. Russia participated in drafting this statement. Russia was there, signed on to it, and said: We agree on this. It is a reaffirmation as to what they agreed to in 1991 in Moscow where we acknowledged that it is of international interest, and we have an obligation and right to question when a member state violates those basic human dimension commitments. Russia clearly has done that. We have not only the right but the obligation to raise that, and I just wanted to underscore that to my colleagues. I say to Senator McCain, your comments on the Senate floor are so much on point. I think people understand it. They understand the basic human aspect to this. But sometimes they ask: Well, why should America be concerned? Do we have a legitimate right to question this? Russia signed the document that acknowledges our right to challenge this and raise these issues. I thank my colleague for yielding. Mr. McCAIN. I thank my colleague from Maryland, and I hope we would get, very rapidly, another 98 cosponsors. I suggest the absence of a quorum. The PRESIDING OFFICER. The clerk will call the roll. The legislative clerk proceeded to call the roll.  

  • Sergei Magnitsky Rule of Law Accountability Act of 2011

    Mr. President, I rise today to introduce the Sergei Magnitsky Rule of Law Accountability Act of 2011.  While this bill bears Sergei Magnitsky’s name in honor of his sacrifice, the language addresses the overall issue of the erosion of the rule of law and human rights in Russia. It offers hope to those who suffer in silence, whose cases may be less known or not known at all.  While there are many aspects of Sergei’s and other tragic cases which are difficult to pursue here in the United States, there are steps we can take and an obvious and easy one is to deny the privilege of visiting our country to individuals involved in gross violations of human rights. Visas are privileges not rights and we must be willing to see beyond the veil of sovereignty that kleptocrats often hide behind. They do this by using courts, prosecutors, and police as instruments of advanced corporate raiding and hope outsiders are given pause by their official trappings of office and lack of criminal records. Further, we must protect our strategic financial infrastructure from those who would use it to launder or shelter ill-gotten gains.  Despite occasional rhetoric from the Kremlin, the Russian leadership has failed to follow through with any meaningful action to stem rampant corruption or bring the perpetrators of numerous and high-profile human rights abuses to justice.  My legislation simply says if you commit gross violations of human rights don’t expect to visit Disneyland, Aspen, or South Beach and expect your accounts to be frozen if you bank with us. This may not seem like much, but in Russia the richer and more powerful you get the more danger you are exposed to from others harboring designs on your fortune and future.  Thus many are standing near the doors and we can certainly close at least one of those doors. And I know that others, especially in Europe and Canada are working on similar sanctions.  I first learned about Sergei Magnitsky while he was still alive when his client William Browder, CEO of Hermitage Capital, testified at a hearing on Russia that I held as Chairman of the Commission on Security and Cooperation in Europe in June 2009.  At the Helsinki Commission we hear so many heartbreaking stories of the human cost of trampling fundamental freedoms and it’s a challenge not to give up hope and yield to the temptation of cynicism and become hardened to the suffering around us or to reduce a personal tragedy to yet another issue. While we use trends, numbers, and statistics to help us understand and deal with human rights issues, we must never forget the face of the individual person whose reality is the issue and the story of Sergei Magnitsky is as unforgettable as it is heartbreaking. Sergei Magnitsky was a young Russian tax lawyer employed by an American law firm in Moscow who blew the whistle on the largest known tax fraud in Russian history. After discovering this elaborate scheme, Sergei Magnitsky testified to the authorities detailing the conspiracy to defraud the Russian people of approximately $230 million dollars and naming the names of those officials involved. Shortly after his testimony, Sergei was arrested by subordinates of the very law enforcement officers he had implicated in this crime. He was held in detention for nearly a year without trial under torturous conditions. He developed severe medical complications, which went deliberately untreated and he died in an isolation cell while prison doctors waited outside his door on November 16, 2009.  Sadly, Sergei Magnitsky joins the ranks of a long list of Russian heroes who lost their lives because they stood up for principle and for truth. These ranks include Natalia Estemirova a brave human rights activist shot in the head and chest and stuffed into the trunk of a car, Anna Politkovskaya an intrepid reporter shot while coming home with an arm full of groceries, and too many others.  Often in these killings there is a veil of plausible deniability, gunmen show up in the dark and slip away into the shadows, but Sergei – in inhuman conditions – managed to document in 450 complaints exactly who bears responsibility for his false arrest and death. We must honor his sacrifice and do all we can to learn from this tragedy that others may not share his fate.  Few are made in the mold of Sergei Magnitsky – able to withstand barbaric deprivations and cruelty without breaking and certainly none of us would want to be put to the test. A man of such character is fascinating and in some ways disquieting because we suspect deep down that we might not have what it takes to stay loyal to the truth under such pressure. Magnitsky’s life and tragic death remind us all that some things are more valuable than success, comfort, or even life itself –truth is one of those things. May his example be a rebuke to those whose greed or cowardice has blinded them to their duties, an inspiration to still greater integrity for those laboring quietly in the mundane yet necessary tasks of life, and a comfort to those wrongly accused.  The Wall Street Journal described Sergei Magnitsky’s death as a “slow-motion assassination,” while the Moscow Prison Oversight Committee called it a “murder to conceal a fraud.” Pulitzer Prize-winning reporter Ellen Barry writing in the New York Times stated that, “Magnitsky’s death in pretrial detention at the age of 37... sent shudders through Moscow’s elite. They saw him – a post-Soviet young urban professional – as someone uncomfortably like themselves.”  Outside the media, President of the European Parliament Jerzy Buzek noted that “Sergei Magnitsky was a brave man, who in his fight against corruption was unjustifiably imprisoned under ruthless conditions and then died in jail without receiving appropriate medical care.” While Transparency International observed that, “Sergei did what to most people seems impossible: he battled as a lone individual against the power of an entire state. He believed in the rule of law and integrity, and died for his belief.”  One might have thought that after the worldwide condemnation of Sergei Magnitsky’s arrest, torture, and death in the custody, the Russian government would have identified and prosecuted those responsible for this heinous crime. Instead, the government has not prosecuted a single person and many of the key perpetrators went on to receive promotions and the highest state honors from the Russian Interior Ministry. Moreover, the officers involved feel such a sense of impunity that they are now using all instruments of the Russian state to pursue and punish Magnitsky’s friends and colleagues who have been publicly fighting for justice in his case.  They have forced the American founding partner of Magnitsky’s firm, Jamison Firestone, to flee Russia in fear for his safety in the months following his colleague’s death after learning that the same people were attempting to take control of an American client’s Russian companies and commit a similar fraud. And they have used the same criminal case that was used to falsely arrest Magnitsky to indict Sergei's client Bill Browder. They have opened up retaliatory criminal cases against many of Hermitage’s employees and all of its lawyers, who were forced to leave Russia to save their own lives. These attacks have only intensified since my colleague and friend Congressman Jim McGovern introduced the Justice for Sergei Magnitsky Act of 2011, a similar measure in the House of Representatives, last month.  In the struggle for human rights we must never be indifferent. On this point, I am reminded of Eli Wiesel’s hauntingly eloquent speech, The Perils of Indifference which he delivered at the White House in 1999. On this ever-present danger and demoralizer he cautions us, “Indifference elicits no response. Indifference is not a response. Indifference is not a beginning, it is an end. And, therefore, indifference is always the friend of the enemy, for it benefits the aggressor – never his victim, whose pain is magnified when he or she feels forgotten. The political prisoner in his cell, the hungry children, the homeless refugees – not to respond to their plight, not to relive their solitude by offering them a spark of hope is to exile them from human memory. And in denying their humanity we betray our own.”  Speaking of our humanity, I offer the following words as a contrast. They are from Russian playwright Mikhail Ugarov who created One Hour Eighteen, which is the exact amount of time it took for Sergei Magnitsky to die in his isolation cell at Moscow’s Matrosskaya Tishina prison. Ugarov asks, “When a person puts on the uniform of a public prosecutor, the white lab coat of a doctor, or the black robe of a judge, does he or she inevitably lose their humanity? Do they lose their ability to – even in a small way – empathize with a fellow human being? In the case of Sergei Magnitsky, each of the people who assumed these professional duties in the case left their humanity behind.”  The coming year will be a significant moment in the evolution of Russian politics. With Duma elections scheduled for the end of 2011 and presidential elections for early 2012, there is an opportunity for the Russian government to reverse what has been a steady trajectory away from the rule of law and respect for human rights and toward authoritarianism.  Mr. President, private and even public expressions of concern are not a substitute for a real policy nor are they enough, it’s time for consequences. The bill I introduce today sends a strong message to those who are currently acting with impunity in Russia that there will be consequences for corruption should you wish to travel to and invest in the United States. Such actions will provide needed moral support for those in Russia doing the really heavy-lifting in fighting corruption and promoting the rule of law, but they will also protect our own interests – values or business related.  We see before us a tale of two Russias, the double headed eagle if you will. To whom does the future of Russia belong? Does it belong to the Yevgenia Chirikovas, Alexey Navalnys, Oleg Orlovs and countless other courageous, hardworking, and patriotic Russians who expose corruption and fight for human rights or those who inhabit the shadows abusing and stealing from their fellow citizens?  Let’s not put aside our humanity out of exaggerated and excessively cautious diplomatic concerns for the broader relationship. Let’s take the long view and stand on the right side – and I believe the wise side – with the Russian people who’ve suffered so much for the cause of liberty and human dignity. They are the ones who daily risk their safety and freedom to promote those basic principles enshrined in Russian law and many international commitments including the Helsinki Final Act. They are the conscience of Russia. And let us tell them with one voice that they are not alone and that concepts like the rule of law and human rights are not empty words for this body and for our government. I urge my colleagues to support this bill.  I ask unanimous consent that the text of the bill be printed in the Record.  Thank you, Mr. President.

  • Central Asia and the Arab Spring: Growing Pressure for Human Rights?

    Popular uprisings in Tunisia, Egypt and Libya, along with ferment in Bahrain, Yemen, Jordan and Syria, surprised even expert analysts and shook the very foundations not just of the states concerned but of the entire region. The long authoritarian rule of leaders in the region had been accepted by many as a factor of stability. In the end, however, public anger erupted over regimes that had been in power for decades, enriching themselves and their cronies, while most citizens barely scraped by. Many of these conditions apply to the states of Central Asia, with the partial exception of Kyrgyzstan – where street protests have toppled two presidents since 2005 and last year the country established a parliamentary government. Although the situation is unique in each Central Asian country, the region’s states have human rights records that are consistently poor, and some are listed among the most repressive countries in the world.  Rulers have contrived to remain in office indefinitely, controlled and rigged elections, restricted independent media and religious freedom, harassed opposition parties – where they exist at all—and stunted the development of civil society. Torture and mistreatment in detention are common in the region.

  • World Premiere of Justice for Sergei

    This film screening presented by the U.S. Helsinki Commission commemorated the one-year anniversary of the death of Russian anti-corruption lawyer Sergei Magnitsky. “Justice for Sergei” is a film about the anti-corruption lawyer who blew the whistle on a $230 million tax fraud involving senior Russian officials. This film marks the first time since Sergei’s death that his family and friends have spoken publicly about the false arrest and torture of the man who died trying to expose the corruption gripping his country.    Panelists – including Boris Nemtsov, Former Deputy Prime Minister of the Russian Federation; Dr. Michael McFaul, Senior Director of Russia and Eurasian Affairs for the National Security Council; and David Kramer, Executive Director of Freedom House – presented statements related to corruption in Russia and spoke to the lack of rule of law in the country.

  • Beyond Corporate Raiding: A Discussion of Advanced Fraud Schemes in the Russian Market

    This briefing was part of a number of Helsinki Commission events focusing on corruption and fraud in modern Russia’s businesses and law enforcement. Kyle Parker led a fascinating and provocative discussion with Russia's leading anti-corruption crusader, shareholder activist, and blogger extraordinaire Alexei Navalny who Time Magazine dubbed "Russia's Erin Brockovich." Alexei shared his experiences with Russian corruption and shed light on the measures one must take to be successful. Parker and Navalny addressed the death of Sergei Magnitsky in 2009 and the fraud against Hermitage Capital. They looked at the possibility of similar situations in the future and whether or not there is hope for change. They also discussed the sharp contrast of this corruption against the strident anti-corruption rhetoric of President Dmitriy Medvedev, who has called for an end to "legal nihilism" and the corrosive practice of law enforcement "nightmaring" legitimate businesses.

  • OSCE 2010 Informal Ministerial: Kazakhstan Persistence Earns a Summit in Astana

    By Winsome Packer Policy Advisor Kazakhstan hosted its long-sought OSCE Informal Ministerial in Almaty July 16-17, 2010, the realization of a key aim of its Chairmanship. A second important objective of the Kazakh Chairmanship: a summit on Kazakh soil during 2010, came closer to realization during the meeting. An Astana Summit would be the OSCE’s first since the 1999 Istanbul Summit, which yielded the Adapted Conventional Armed Forces Treaty. Early and persistent calls for “substance before summit” by the U.S. Delegation and other participating States had put in doubt both the informal ministerial and the summit for months. However, a number of the participating States argued for the high level attention to wide-spread security challenges in the OSCE region and the erosion of OSCE values in some quarters. Ten years after the last OSCE summit, they argued, necessitated a meeting of heads of states and governments to reaffirm the participating States’ commitment to the organization’s values and agree on a way forward to tackle the challenges confronting the region today. Thus, six months of, at times, heated informal Corfu dialogue on security challenges in the OSCE region, which was mandated by the Athens Ministerial Declaration, yielded more than 50 “food for thought” papers from the participating States, the Parliamentary Assembly, the OSCE Secretariat, the Partners for Cooperation, think tanks and non-governmental organizations. The thematic papers evolved into an Interim Report during June, which incorporated the proposals submitted within the Corfu Process. It formed the basis for the agenda at the Almaty Informal Ministerial and for the Summit which will be held in Astana December 1-2, 2010. The Almaty Informal Ministerial saw the participation of more than forty foreign ministers, including from the Russian Federation, France, Germany, Canada, Spain, Portugal, Poland, Georgia, Turkey, Austria, and Ukraine. The Parliamentary Assembly’s delegation included President Petros Efthymiou, and Secretary General Spencer Oliver. The U.S. delegation was headed by Deputy Secretary of State James Steinberg who, in a bilateral meeting with the Kazakhstanis on July 16, affirmed U.S. support for an OSCE summit this year. The joining of consensus on the summit decision by the United States elicited private expressions of relief from many delegates, and heightened expectations for the summit which would reflect the outcome of the Corfu Process: a declaration and an action plan. The Chair-in-Office requested that the OSCE delegations work toward these aims throughout the summer. During the meeting, delegates voiced support for the summit, to be held in Astana. A majority of the participating States urged OSCE support for Kyrgyzstan, in particular, through the deployment of a police mission. The United States and many delegates stated that the substance of the summit should be based upon the four proposals put forward by the European Union to: (1) bolster the OSCE’s capabilities in all three dimensions to promote early warning, conflict prevention and resolution, crisis management and post-conflict rehabilitation, including in relation to the protracted conflicts; (2) strengthen implementation and follow-up of OSCE norms, principles and commitments in particular, human dimension commitments covering human rights and fundamental freedoms, including freedom of the media; (3) enhance the conventional arms control framework, including confidence and security building measures, through updating the 1999 Vienna Document and the Conventional Forces in Europe Treaty); and (4) increase attention to transnational threats in all three OSCE dimensions. Some delegates also called for a summit to: focus on instability in Afghanistan; intensify efforts to resolve protracted conflicts in the region, and address nuclear terrorism and the proliferation of nuclear and weapons of mass destruction. The United States called for greater military transparency, implementation of human dimension commitments and addressing inter-ethnic conflict in Kyrgyzstan. The U.S. delegation also expressed support for the expeditous deployment of a police force to Kyrgyzstan and for an action plan for the future work of the participating States. In addition to supporting the European Union’s four summit process proposals, the United States also expressed support for a focus on Afghanistan. A Chair’s Perception Paper, resulting from the informal ministerial, incorporated these concerns. Russian Foreign Minister Sergei Lavrov reiterated Russia’s support for the summit “this year.” He urged the involvement of other regional and sub-regional leaders in addressing the Kyrgyzstan situation. He expressed hope that action would be taken on Russia’s proposal for a European Security Treaty (EST) and that it would not merely remain a “subject for discussion.” Lavrov said that the summit document should reflect the post Cold War situation and the security system that emerges should be “free of dividing lines.” He said that Russia was studying NATO’s response to the EST proposal and underlined that the summit should give strong, political impetus for supporting Kyrgyzstan. Concurrent with the Informal Ministerial, draft decisions on the holding of an OSCE summit during 2010 and draft decisions on the agenda and modalities of the summit and agenda and modalities for a review conference were circulated. The review conference would be held in Vienna, Warsaw, and Astana. Negotiations on the draft decisions began on July 19.

  • Russia: U.S. Congressmen Propose Sanctions in Lawyer’s Death

    Members of the United States Congress introduced legislation on Wednesday that would impose financial sanctions and visa bans on Russian officials implicated in the case of Sergei L. Magnitsky, a Russian lawyer who died in prison in Moscow in November after being ensnared in tax inquiry. The measure’s sponsors — including Senator Benjamin L. Cardin, a Maryland Democrat, and Representative Jim McGovern, a Massachusetts Democrat — said it was intended to spur the Russian government to properly investigate Mr. Magnitsky’s death. His defenders contend that he was jailed in an effort to force him to falsify testimony against Hermitage Capital Management, a major foreign investment fund that once had large holdings in Russia. His death caused widespread outrage and focused renewed attention on police tactics and corruption in Russia.

  • U.S. Lawmakers Push Visa Sanctions in Russian Case

    More than 60 Russians linked to the death of an anti-corruption lawyer would be barred from the United States and its financial markets under a bill introduced in the Congress on Wednesday. The measure says that sanctions would be lifted only after Russia brings to justice those responsible for the 2009 death of Sergei Magnitsky, a lawyer for what was once Russia's top equity fund, Hermitage. But the bill, introduced by Senator Benjamin Cardin and Representative James McGovern, both Democrats, faces a steep climb to get passed before Congress completes its work for the year. Human rights activists charge that Russian authorities subjected Magnitsky to conditions amounting to torture in a failed bid to force him to testify in their favor in a battle with Hermitage over a $234 million tax fraud scheme. Magnitsky died after being repeatedly denied medical treatment in pre-trial detention. He had accused Russian officials of stealing the millions of tax dollars paid by his client. A Democratic aide said the bill has drawn bipartisan interest and lawmakers might get to it when they return to Washington after the November 2 congressional election for what is expected to be a final few weeks of work. "Nearly a year after Sergei's death, the leading figures in this scheme remain in power in Russia," said Cardin, who also chairs the human rights monitoring U.S. Helsinki Commission, an independent federal agency. "If we expect any measure of justice in this case, we must act in the United States," said Cardin. "At the least, we can and should block these corrupt individuals from traveling and investing their ill-gotten money in our country."

  • Opening a Second Front

    The death in prison of Sergei Magnitsky, a young Russian lawyer, remains one of the darkest scandals in the blotchy history of Russia's criminal justice system, exemplifying a culture of impunity in which power and wealth are fungible, and those who get in the way get squashed. Mr Magnitsky died of untreated pancreatis in pre-trial detention. He hadaccused Russian officials of stealing millions of tax dollars paid by his client, Hermitage Capital Management. Energetic lobbying by the head of Hermitage, the American-born financier Bill Browder, now seems to be getting somewhere. Two senior American lawmakers, Senator Benjamin L. Cardin (a Democrat from Maryland), who is Chairman of the congressional Helsinki Commission and James P. McGovern (a Democratic congressman from Massachussetts), who chairs the Tom Lantos Human Rights Commission, have introduced laws that would prohibit some 60-odd Russian officials linked to his death from visiting the United States, and freeze any assets they hold under American jurisdiction. (The Russian officials concerned have either made no public comment, or deny all wrongdoing). Mr Cardin said: “Nearly a year after Sergei’s death, the leading figures in this scheme remain in power in Russia. It has become clear that if we expect any measure of justice in this case, we must act in the United States...At the least we can and should block these corrupt individuals from traveling and investing their ill-gotten money in our country.” Mr McGovern said: “I have introduced the ‘Justice for Sergei Magnitsky Act of 2010’ in the House of Representatives as a direct consequence of the compelling testimony at a hearing on human rights in the Russian Federation in the Tom Lantos Human Rights Commission. The death of this courageous whistleblower in a Russian prison is the consequence of an abysmal prison system and corruption aimed at defrauding the Russian Treasury of billions. We know about Sergei Magnitsky, and we know about Mikhail Khodorkovsky, but how many more Magnitskys and Khodorkovskys are currently suffering in Russian prisons? My bill addresses the root causes of these severe human rights violations -- the Russian prison system and official corruption. We should not rest until justice is achieved in Sergei’s case, and the money is returned to its rightful owners -- the people of the Russian Federation."

  • Legal Hooliganism – Is the Yukos Show Trial Finally Over?

    In this briefing, which Commissioner Alcee L. Hastings presided over, the focus was the second Yukos trial of Mikhail Khodorkovsky. More specifically, the purpose of “Legal Hooliganism – Is the Yukos Show Trial Finally Over?” was to not only expose the injustice in the Khodorkovsky case, but also in the entire Russian judicial system. The trial against Khodorkovsky and oil company Yukos commenced in 2003. Many viewed such an effort as a politically motivated attack by the Kremlin. Eventually, before the time of the briefing, the case against Khodorkovsky had become a complete show trial in which the accusations against the defendant had become so absurd. The outcome and proceeding of this case, then, had implications not only for the fairness of the trial of Khodorkhovsky, but also for concerns for Russia as a society based on the rule of law.

  • Copenhagen Anniversary Conference

    By Orest Deychakiwsky, Policy Advisor Representatives from a majority of the 56 OSCE participating States and several dozen non-governmental organizations (NGOs) gathered in Copenhagen on June 10-11 to mark the 20th anniversary of the adoption of the 1990 Copenhagen Document and to assess implementation of key provisions of that landmark document. The anniversary conference, titled “20 years of the OSCE Copenhagen Document: Status and Future Perspectives,” was co-organized by the Kazakhstani OSCE Chairmanship and Denmark, and held at the Eigtveds Pakhus, Danish Ministry of Foreign Affairs. Michael Haltzel led the U.S. delegation, which was joined by U.S. Ambassador to the OSCE, Ian Kelly and representatives from the OSCE Mission in Vienna, the State Department and the Helsinki Commission. Five substantive working sessions, reflecting some of the major themes of the groundbreaking Copenhagen Document, were held: Democratic processes – elections and human rights; Rule of Law; National Minorities; Freedom of Movement; and Measures to improve implementation of the human dimension commitments. Many speakers highlighted the historic importance of the Copenhagen Document, which offered a blueprint for pluralistic democratic development, rooted in the rule of law and protection of human rights, throughout the OSCE region – a revolutionary document at the time and one that remains highly relevant two decades later. The June 1990 Copenhagen Meeting came at a unique time in history when dramatic changes were taking place; the fall of the Berlin Wall and subsequent collapse of one-party regimes in Eastern Europe had taken place only months earlier. And the following year – 1991 -- witnessed the emergence of 15 independent states with the dissolution of the Soviet Union. Truly, those were dynamic days during which sweeping new commitments -- which would have been impossible to garner consensus for years or even months prior -- received universal support. Indeed, it is questionable as to whether consensus to the Copenhagen agreement would be found today, given the democratic and human rights backsliding that has occurred in a number of participating States. The Copenhagen Document underlines the centrality of political pluralism, civil society and human rights as fundamental elements of functioning democracies. As Ambassador Max Kampelman, the head of the U.S. delegation to the 1990 conference summed it up, “In effect, the Copenhagen document represents the first formal proclamation, by the States themselves, of a Europe both whole and free.” It identified the protection of human rights and fundamental freedoms as one of the basic purposes of government and acknowledged that democracy is an inherent element of the rule of law. Among the achievements of the Copenhagen Document were the far-reaching commitments on democratic elections which laid the groundwork for the OSCE’s future activities with respect to election observation. Copenhagen also represented a significant step forward with respect to the protection of minorities, and for the first time there was a direct reference to Roma and to anti-Semitism. While participants at the anniversary meeting underscored the significant progress over the last 20 years, many also called for fuller compliance with the Copenhagen commitments, noting, for instance, backsliding in holding democratic elections in some participating States; suppression of civil society, including independent media, NGOs and human rights defenders; the deficit of impartial and independent justice; and the lack of separation of powers – especially the concentration of power in the executive. The last session of the conference discussed measures to improve implementation of human dimension commitments, including the prevention of human rights violations through the use of reporting before the violations occur; enhancement of standards and commitments; strengthened monitoring mechanisms, including a U.S. proposal to dispatch special representatives to investigate reports of egregious human rights violations and make corrective recommendations before the violations become entrenched; and improved cooperation with, and involvement of, civil society actors in advancing democracy, human rights and the rule of law. Ultimately, however, compliance with existing standards enshrined in the Copenhagen Document, the Helsinki Final Act and all other OSCE commitments remains the primary responsibility of the participating State.

  • In the Eye of the Storm: Chechnya and the Mounting Violence in the North Caucasus

    A year after the leading Russian human rights defender, Natalya Estemirova, was abducted near her apartment building in the Chechen capital Grozny, transported to the neighboring republic of Ingushetia and brutally killed, human rights abuses and a continuing climate of fear prevailed in Chechnya and elsewhere in the North Caucasus region of the Russian Federation.  Ronald McNamara, International Policy Director at the Commission, led a discussion on the marked increase in extrajudicial killings and politically motivated disappearances in Chechnya as well as in neighboring Ingushetia and Dagestan.  Witnesses – Elena Milashina, Raisa Turlueva, and Igor Kalyapin – discussed how strongman Ramzan Kadyrov, the Republic’s Kremlin-backed president, publicly labeled independent journalists and rights activists as “traitors and enemies of the state” and how he reportedly praised the perpetrators of recent paintball gun attacks on the streets of Grozny targeting women for not wearing headscarves.  They emphasized the difficulty of resolving the problem because of Moscow’s backing of Ramzan and of a political model in which “bandits” serve as a prop for the federal powers that be.

  • OSCE Parliamentary Assembly Session in Oslo

    Mr. CARDIN. Mr. President, I want to report on the activities of a bicameral, bipartisan congressional delegation I had the privilege to lead last week as chairman of the Helsinki Commission. The purpose of the trip was to represent the United States at the 19th Annual Session of the Parliamentary Assembly of the Organization for Security and Cooperation in Europe, otherwise known as the OSCE PA. The annual session this year was held in Oslo, Norway, and the U.S. delegation participated fully in the assembly's standing committee, the plenary sessions, the three general committees and numerous side events that included discussion of integration in multiethnic societies and addressing gender imbalances in society.  Although some last-minute developments at home compelled him to remain behind, our colleague from the other Chamber, Mr. Alcee Hastings of Florida, was present in spirit as the deputy head of the delegation. Mr. Hastings, who co-chairs the Helsinki Commission, was very active in the preparations for the trip, and his legacy of leadership in the OSCE PA--for over a decade--is tangible in the respect and goodwill afforded the United States during the proceedings.  Our assistant majority leader, Mr. Durbin of Illinois, joined me on the trip, as he did last year. Our colleague from New Mexico who serves as a fellow Helsinki Commissioner, Mr. Udall, also participated. Helsinki Commissioners from the other Chamber who were on the delegation include Mr. Christopher Smith of New Jersey, serving as the ranking member of the delegation, as well as Mrs. Louise McIntosh Slaughter of New York, and Mr. Robert Aderholt of Alabama. Although not a member of the Helsinki Commission, Mr. Lloyd Doggett of Texas has a longstanding interest in OSCE-related issues and also participated on the delegation.  As many of you know, the OSCE Parliamentary Assembly was created within the framework of the OSCE as an independent, consultative body consisting of over 300 Parliamentarians from virtually every country in Europe, including the Caucasus, as well as from Central Asia, and the United States, and Canada. The annual sessions are held in late June/early July as the chief venue for debating issues of the day and issuing a declaration addressing human rights, democratic development and the rule of law; economic cooperation and environmental protection; and confidence building and security among the participating states and globally.  This active congressional participation helps ensure that matters of interest to the United States are raised and discussed. Robust U.S. engagement has been the hallmark of the Parliamentary Assembly since its inception nearly 20 years ago.  The theme for this year's annual session was ``Rule of Law: Combating Transnational Crime and Corruption.'' In addition to resolutions for each of the three general committees, delegations introduced a total of 35 additional resolutions for consideration, a record number, including 4 by the United States dealing with:  Nuclear security , which followed up directly on the Nuclear Summit here in Washington in April;  The protection of investigative journalists, a critical human rights issue as those who seek to expose corruption are targeted for harassment or worse;  Mediterranean cooperation, building on the OSCE partnerships to engage important countries in North Africa and the Middle East; and  Combating the demand for human trafficking and electronic forms of exploitation, a longstanding Helsinki Commission issue requiring persistence and targeted action.  U.S. drafts on these relevant, important topics received widespread support and were adopted with few if any amendments.  Beyond these resolutions, the United States delegation also undertook initiatives in the form of packages of amendments to other resolutions. These initiatives addressed:  The needs of the people of Afghanistan in light of the smuggling and other criminal activity which takes place there. The struggle for recovery stability and human rights in Kyrgyzstan, which is an OSCE state in the midst of crisis. And  Manifestations of racism and xenophobia that have become particularly prevalent in contemporary Europe. A critical U.S. amendment allowed us generally to support a French resolution that usefully addressed issues relating to the closure of the detention facility in Guantanamo Bay. Still other amendments coming from specific members of the U.S. Delegation covered a wide range of political, environmental and social issues relevant to policymakers. My colleagues and I were also active in the successful countering of amendments that would have steered resolutions on the Middle East and on the future of the OSCE multilateral diplomatic process in directions contrary to U.S. policy.  Beyond the consideration of the resolutions which now comprise the Oslo Declaration, the annual session also handled some important affairs for the OSCE PA itself. These, too, had relevance for U.S. policy interests:  the American serving as OSCE PA Secretary General, Spencer Oliver, was reappointed to a new 5-year term; a modest--and for the third fiscal year in a row--frozen OSCE PA budget of about $3 1/2 million was approved that requires continued and unparalleled efficiency in organizing additional conferences, election observation missions, and various other activities that keep the Parliamentary Assembly prominently engaged in European and Central Asian affairs;  in addition to my continued tenure as a vice president in the Parliamentary Assembly, Mr. Aderholt of Alabama was reelected as the vice chair of the general committee dealing with democracy, human rights, and humanitarian questions which ensures strong U.S. representation in OSCE PA decision-making; and a Greek parliamentary leader defeated a prominent Canadian senator in the election of a new OSCE PA president, following a vigorous but friendly campaign that encouraged the assembly to take a fresh look at itself and establish a clearer vision for its future.  While the congressional delegation's work focused heavily on representing the United States at the OSCE PA, we tried to use our presence in Europe to advance U.S. interests and express U.S. concerns more broadly. The meeting took place in Norway, a very close friend and strong, long-time ally of the United States of America. In discussions with Norwegian officials, we expressed our sorrow over the recent deaths of Norwegian soldiers in Afghanistan. We also shared our concerns about climate change and particularly the impact global warming has on polar regions  Indeed, on our return we made a well-received stop on the archipelago of Svalbard, well north of the Arctic Circle, to learn more about the impact firsthand, from changing commercial shipping lanes to relocated fisheries to ecological imbalance that make far northern flora and fauna increasingly vulnerable. The delegation also visited the Svalbard Global Seed Vault, a facility that preserves more than 525,000 types of seeds from all over the world as a safeguard for future crop diversity, and took the opportunity to donate additional U.S. seeds to the collection.  Norway is located close to a newer, but also very strong, ally with close ties to the United States, Estonia. Since last year's delegation to the OSCE PA Annual Session went to Lithuania and included Latvia as a side trip, I believed it was important to utilize the opportunity of returning to northern Europe to visit this Baltic state as well.  While some remained in Oslo to represent the United States, others traveled to Tallinn, where we had meetings with the President, Prime Minister, and other senior government officials, visited the NATO Cooperative Cyber-Defense Center of Excellence and were briefed on electronic networking systems that make parliament and government more transparent, efficient and accessible to the citizen. Estonia has come a long way since it reestablished its independence from the Soviet Union almost 20 years ago, making the visit quite rewarding for those of us on the Helsinki Commission who tried to keep a spotlight on the Baltic States during the dark days of the Cold War.  During the course of the meeting, the U.S. delegation also had bilateral meetings with the delegation of the Russian Federation and a visiting delegation from Kyrgyzstan to discuss issues of mutual concern and interest.  U.S. engagement in the OSCE Parliamentary Assembly sends a clear message to those who are our friends and to those who are not that we will defend U.S. interests and advance the causes of peace and prosperity around the world.

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