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Jackson Lee and Hudson Introduce Legislation to Fight Illicit Tobacco Trade

Friday, March 08, 2019

WASHINGTON—Representatives Sheila Jackson Lee (TX-18) and Richard Hudson (NC-08) today introduced the Combating the Illicit Trade in Tobacco Products Act (CITTPA) in the House of Representatives. Both Rep. Jackson Lee and Rep. Hudson serve on ad hoc committees of the OSCE Parliamentary Assembly, which facilitates interparliamentary dialogue to advance human rights, military security, and economic cooperation in Europe, Central Asia, and North America.

“The illicit trade in tobacco underpins some of the gravest transnational threats to the United States and our allies. Illicit tobacco trafficking is not a victimless offense; it facilitates other, more heinous crimes including money laundering and trafficking in weapons, drugs, antiquities, diamonds, counterfeit goods, and—worst of all—human beings,” said Rep. Jackson Lee.

“Cigarette smuggling is not just an economic issue, it’s a public safety issue. Illegal cigarettes help finance organized crime and terrorism. Smuggled cigarettes are also more likely to end up in the hands of children and teens. The Combatting the Illicit Trade in Tobacco Products Act will give the United States better tools and more information to combat this dangerous activity,” said Rep. Hudson.

The Combatting the Illicit Trade in Tobacco Products Act (CITTPA) would improve the U.S. Government’s ability to identify and deter those engaging in the trade of illicit tobacco. The bill would:

  • Provide better information on countries involved with the illicit tobacco trade. The legislation requires the U.S. Secretary of State to report annually on which countries are determined to be a major source of illicit tobacco products or their components, and identify which foreign governments are actively engaged and knowingly profiting from this illicit trade.
  • Enable the United States to deter countries involved in the illicit trade in tobacco, and better assist its allies. The bill grants the U.S. Secretary of State the ability to withhold U.S. foreign assistance from those countries knowingly profiting from the illicit trade in tobacco or its activities. In countries where the government is working to stop these trafficking efforts, the Secretary of State would be able to provide assistance for law enforcement training and investigative capacity.
  • Help the United States target individuals assisting in the illicit tobacco trade. It authorizes the President of the United States to impose economic sanctions and travel restrictions on any foreign individual found to be engaged in the illicit tobacco trade, and requires the president to submit a list of those individuals to Congress.

The Helsinki Commission organizes U.S. delegations to OSCE PA annual sessions and other meetings, as well as official delegations to participating States and other OSCE meetings to address democratic, economic, security, and human rights developments. The commission also convenes public hearings and briefings with expert witnesses on OSCE-related issues. In July 2017, the Helsinki Commission held a hearing on illicit trade in tobacco products, which included testimony from the academic community, the public health advocacy community, and industry.

Media contact: 
Name: 
Stacy Hope
Email: 
csce[dot]press[at]mail[dot]house[dot]gov
Phone: 
202.225.1901
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  • 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.

  • Canada Considers Next Steps in Extractive Industry Transparency; Roundtable in Toronto is Forum for Discussion on Harmonization of Canadian and U.S. Reporting Requirements

    By Shelly Han Policy Advisor The oil, gas and mining sector play an important part of Canada’s economy, not only in terms of its domestic industry, but also the global reach of Canada’s extractive companies and the importance of its capital markets for international mining companies. According to recent reports, Toronto is the mining finance capital of the world, raising 30 to 40 per cent of the world’s mining equity almost every year, and Canadian mining companies account for a world-leading 40 percent of global exploration expenditure. With passage of the Dodd-Frank Wall Street Reform and Consumer Protection Act in 2010, a new law was created that requires greater transparency by oil, gas and mining companies in all markets, both domestic and international. The law, sponsored by Senators Ben Cardin and Richard Lugar, requires all companies listed on U.S. stock exchanges to report to the Securities and Exchange Commission (SEC) the payments they make to U.S. and foreign governments for natural resource exploration and extraction. The SEC rule to implement this law is currently being drafted and will become final in early April of 2011. In order to make this transparency initiative even more effective, supporters of the measure are working to enact similar initiatives in other major capital markets such as the EU, Canada, Hong Kong and elsewhere. On January 18, 2011, the Publish What You Pay Coalition of Canada convened a roundtable discussion to consider ways that Canada might harmonize its exchange reporting regulations with the new requirements enacted in the United States. At the event were key players in the Canadian extractives industry sector, the regulatory agencies, academics and non-governmental organizations. Strong support was expressed by some participants for harmonization with the U.S. because of Canada’s pivotal role in providing mining capital. And even though Canadian companies and the Canadian Government have made a tremendous push toward increasing corporate social responsibility in the mining sector, it was noted by one of the participants that Canada is about to be severely criticized by the Organization for Economic Cooperation and Development (OECD) following completion of an assessment of their enforcement of anti-bribery laws. During the discussion, the participants noted that a complicating factor in harmonization was the fact that Canadian capital markets are administered at the provincial and territory-level, meaning that unlike the practice in the United States where this is just one federal regulator, Canada has 13 separate securities regulators. Currently pending legislation in the form of a draft Securities Act, however, may create an overarching federal securities body, but some participants expressed doubt about the passage of this bill. Even absent creation of a federal agency, some participants noted that if the major exchanges in Toronto and Ontario moved to harmonize first, then other provinces were likely to follow suit. Regardless, Canadian regulators are unlikely to move forward until a final SEC rule is issued in April. At that time groups such as the Publish What You Pay Coalition and others will likely move forward with a renewed push for harmonization with new global standard on transparency for the extractive industries.

  • 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.

  • The Future of an Efficient Eurasian Transit System Stopped Dead in Its Tracks? A Report on the 18th Economic and Environmental Forum and the Future of Central Asian Road and Rail Transport

    By Josh Shapiro, Staff Associate The 18th Economic and Environmental Forum (EEF) was held this year on May 24-26, 2010, in Prague, Czech Republic with the theme of promoting good governance at border crossings, improving the security of land transportation, and facilitating international transport by road and rail in the OSCE region. The Forum brought together 42 of the 56 OSCE participating States, four Partners for Cooperation, multiple international organizations including the United Nations Economic Commission for Europe (UNECE) and the International Road Transport Union (IRU), and several business, academic, and non-governmental organizations. The EEF is annually the central event of the Organization for Security and Cooperation in Europe’s economic and environmental activities. The Forum gives political impetus to dialogue in this area and provides recommendations for future follow-up activities. The EEF takes place in two parts, of which this meeting in Prague is the second; the first part was held on February 1-2, 2010 in Vienna, Austria. Two preparatory conferences for the Forum have also been held, the first in Astana, Kazakhstan on October 12-13, 2009 and the second in Minsk, Belarus on March 15-16, 2010. The 18th Economic and Environmental Forum in Review Transport is a crucial factor, not only between Asia and Europe, but around the world. The need for simplified systems, which can cut down transit times and costs for products, will enable countries to thrive from the revenue and job creation that it possesses to affected countries. Along with these positive factors comes the downside of such a new system. More corruption, environmental pollution, and the need for more security measures will all become new factors. The road to implementation of a fully integrated Eurasian transit system will be long and tough. A slew of major bumps along the way will surely slow the progress of long-term execution, which includes, but is not limited to, revising visa and customs procedures, rule of law issues between neighboring countries, smuggling of weapons and drugs, human trafficking concerns, and private and public sector corruption. Concerns about the increase of prices of goods due to delays from the aforementioned issues and improving customs systems have arisen, given that many neighboring countries have complex differences between them. Enhancement of cooperation between these participating States will be a critical test to the vitality of this proposed transit network and whether it will survive the many problems it faces. Prospects for the further development of efficient and secure transit transportation between Asia and Europe Improving Eurasian transport links can promote mutual economic growth and help overcome the current global economic recession. Further development will help facilitate positive partnerships between participating States, and will help stabilize the region. Additionally, landlocked countries will benefit greatly from the new trade routes built with their neighboring transit countries. The current state of transport links is in dire need of improvement. According to Russian Railways, building a 1520 millimeter gauge railway in Slovakia from Bratislava to Vienna, as well as associated logistics infrastructure, may be a breakthrough in developing the transport link from Europe through Central Asia to China. This proposed railway will attract freight traffic from numerous countries including Austria, Slovakia, the Czech Republic, Hungary, Germany, Switzerland, Italy, Slovenia, Serbia and Croatia. By building a new system, it will take approximately one-third of the transit time currently in place, helping move current maritime transport practices to more efficient and cost-effective road and rail transport. Rises in global economy are determined by transport, energy, climate, and water security. Building a new ground system will not, however, provide for a perfect method of transport, as an infrastructure without security is useless. Review of the implementation of OSCE commitments in the economic and environmental dimension The United Nations Economic Commission for Europe (UNECE) prepared a Review Report focused on the facilitation of international transport and the security of inland transport. In the report, there is discussion of the many challenges that an integrated Eurasian transport system faces. For example, road traffic safety, border crossing challenges, capacity and quality of road and rail infrastructure are just a few of the obstacles. There must be a shift from a national transit perspective to a regional perspective. Once integrated, there must be a shift from a regional to an inter-continental approach. Additional challenges include a development gap between countries, as some do not have the resources to build such an infrastructure. Investment in transport is a question of priority within a country, as some give precedence to other issues, regardless of what a neighboring participating State might do. CO2 abatement, traffic safety, and trade and transport facilitation need to be compared to security concerns. The lack of a current unified rail law is a major issue, and land transport security is currently well underestimated. According to the UNECE, road safety should be given priority when looking at security issues. In fact, more people have been killed since World War II on the roads than in the War itself. Currently, road and rail networks are not integrated fully, especially in Central Asia, and the need for an adequate and coherent system will be challenging. According to Ms. Eva Monár of UNECE, inland water transport is currently operable; however, efficient integration into the modern day system is lacking because not all countries border a body of water. The environmental impact of an expansion is of major concern, as air pollution causes health hazards and harms our atmosphere. The need for more efficient ‘green’ vehicles is recommended in some UNECE countries, as well as proposed paths around urban areas, reducing noise nuisance and smog. Promoting Good Governance in International Transportation and at Border Crossings Many barriers are faced in international transportation, including issues at border crossings. Approximately 40% of transit time is lost at border crossings as a result of bad governance and the lack of a simplified visa and customs process. Based off of numerous presentations, the need for cooperation between countries is a must and a proactive approach must be made. Procedures need to be modified so that freight traffic can move in a secure and regulated manner, and contractual frameworks need to be in place for joint liability between carriers and its customers. According to the International Rail Transport Committee (CIT), the OSCE could also play a role in locating and identifying efficient trade routes and motivate participating States to conduct pilot projects to check for potential issues. An example was given at the Forum of a demonstration train that the Economic Cooperation Organization (ECO) ran from Islamabad, Pakistan to Istanbul, Turkey in the fall of 2009. The run proved to potential private investors to take another look at its promise for faster and efficient trade, and this example particularly demonstrated the importance of political will from the States that took part. Regarding customs issues, The Arusha Declaration, adopted by the World Customs Organization in 1993 and revised in 2003, outlines a way forward to enhance integrity in the Customs environment. The revised Kyoto Convention is also key to implement, which harmonizes the customs clearing process. The major concern is the lack of integrity within the customs community and the strong need for governments to be fully committed to reduce corruption. For example, according to a representative of Azerbaijan, modernization of its procedures is already taking place and the amount of waiting time during its customs process has decreased ten-fold. Simplifying the documentation system and implementing a single window structure is the key, as well as training border patrol agents correctly on following up-to-date procedures. The United Nations Conference on Trade and Development suggests that the implementation of existing conventions should be given priority and that public-to-public and public-to-private sector relations are both very important. The Rotterdam Rules were brought up, which were the result multilateral negotiations that took place within the United Nations Commission on International Trade Law for seven years starting in 2002. The Convention, signed by 21 countries including the United States, describes who is responsible and liable for what, and brings clarity under a single contract of carriage. Ireland, which will chair the OSCE in 2012, noted that the EU’s single window market took more than 40 years to implement and the longer term benefit of such a system far outweighs the potential loss of sifting through free trade agreements. Transport facilitation and Security in Central Asia and with Afghanistan Afghanistan currently faces numerous challenges when trading with its neighboring countries and the world. According to Mr. Ziauddin Zia, Adviser to the Minister of Commerce and Industry of Afghanistan, the obstacles include implementing second-generation policy reforms, the exorbitant cost of doing business, a weak-knowledge economy, and poor infrastructure. Tremendous progress has been made in Afghanistan, though, which has recently been torn with violence and corruption. There was a mention by Mr. Zia of the ‘World Bank’s Doing Business’ report, which lists economies on their ease of doing business, of which Afghanistan is ranked last out of 183 countries for the ease of trading across its borders. Poor road conditions hinder efficient trade, and the lack of access to Central Asia by rail limits the possibility of trade with neighboring States. In the long term, if reform in Afghanistan can be achieved in such challenging conditions, other countries can certainly do it as well. Mr. Thomas M. Sanderson, Deputy Director and Senior Fellow at the Center for Strategic and International Studies (CSIS), stressed the economic significance and geopolitical importance of Afghanistan due to its strategic location as the land bridge between the subcontinent, Central Asian states, and the Persian Gulf. Legal frameworks and capacity building through the OSCE could place an added value to the region as well. The Impact of Transportation on Environment and Security Many risks are associated with transcontinental transport, including shipping hazardous waste and dangerous goods. There was a focus on many instances where these materials are shipped through non-EU countries, which do not have to adhere to guidelines already in place. The need to adopt legislation for a single method system to then work with prior European legislation was a discussion topic, as well as the need for construction of secure railcars and subsequently a study of accident prevention. International training of monitoring personnel and trainers were brought to light, and the idea of translating more training manuals was suggested. Unfortunately, security is a major factor that is holding up talks to build an intercontinental rail transport system. Air transport is now secure but rail is certainly not. There are countless access points to terrorize a rail system, as opposed to scanning cargo and passengers in a secure arena such as an airport. Initial costs may increase to prevent terrorism and provide a more secure system, but the long-term economic benefits will make the venture worthwhile. Specific Transport Security Aspects and the Role of the OSCE The importance of land versus maritime transportation is quite evident, as virtually all freight is carried on roads at some point throughout the shipping-to-receiving process. The security aspect of land transportation is much more complex than that of sea, as there is much more potential of terrorist acts being carried through over such a vast area. Some argue, though, that there is an unwillingness of governments to compromise sovereignty in favor of international frameworks and measures. Enhancing inland transport security is key, though currently it appears to be under-protected, especially in the international law perspective. ‘Good practice’ sharing is an effective and inexpensive way to enhance transport security. The United Nations Economic Commission for Europe has organized an ‘Inland Transport Security Discussion Forum’ to provide dialogue on inland transport security issues. The threat of weapons of mass destruction remains but the need to focus on those areas in which cargo is relatively harder to protect is crucial. Closed methods of transport, including aviation (100% passenger and luggage screening) and maritime transport (almost 100% container scanning), might currently be used for global transit, though more of a look into inland transit needs to take effect. Inland transit remains open and accessible to security threats, and design safety standards on railcars and cargo vehicles need to improve. Current financial uncertainty will place greater scrutiny on the decision-making process, especially in the aspect of security. A look at history and past events, such as the Madrid, London, and Russian train bombings, will need to be integrated into the managerial process; however, there is no existing model that fully meets the need of a counter-terrorism security appraisal. Follow-up to the 18th Economic and Environmental Forum The Eighteenth Economic and Environmental Forum is a clear example that the OSCE is taking efforts to provide dialogue to facilitate and secure road and rail transportation, and an effective Eurasian transport system will be a long-term undertaking. Cooperation from neighboring countries and the perseverance of its people to one day be a part of a larger system than just their own will lead to lower overall priced goods and more security for its citizens. The U.S. welcomes further discussion by Kazakhstan, the current Chair-in-Office of the OSCE, of trade and transport ideas at the upcoming OSCE summit, as Kazakhstan is a land-locked country and could reap significant benefits from freer regional trade. Subsequent peace and stability would have a profound effect in the region, especially in Afghanistan where trade is hindered by corruption and the lack of efficient infrastructure. Although many agreements between participating States exist, overcoming the political and economic hurdles to effective implementation will remain the key impediment to success.

  • 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.

  • American Consumers

    One of the major factors that creates failed and corrupt governments around the world is us -- Americans -- and our insatiable consumption of oil. As the largest petroleum consumers in the world, we are the driving force of a global energy market in which the suppliers are often corrupt regimes maintaining power in part through the revenues they extract from our consumption. If we want to fix the problem of failed states, we must start by reforming our own approach to energy: adopting smart-growth policies, driving less, and creating alternative energy sources. Until then, we are just fueling the very corruption we condemn. Sen. Benjamin L. Cardin of Maryland chairs the Commission on Security and Cooperation in Europe (U.S. Helsinki Commission).

  • The Risk and Rewards in Afghanistan's Resources

    The New York Times, in a front-page story last week, reported that $1 trillion worth of minerals was buried in the mountains of Afghanistan. Geologists, Afghan officials and mining companies stand ready to launch a modern-day gold rush. Before everyone charges in, however, we need to recognize the risks and rewards inherent in these resources. This story ran soon after major news outlets noted that the U.S. military wants to fight corruption in Afghanistan’s government as a key to winning the war. In principle, these deposits mean resources for Afghanistan to build its economy as the “Saudi Arabia of lithium.” But expanding Afghanistan’s economy from the current $12 billion to potentially $1 trillion will be a boon only if these resources are managed properly. Many other countries already have proved that resource revenue often leads to corruption and instability. For example, roughly 60 developing countries are rich in natural resources yet home to more than two-thirds of the world’s poorest people. Despite billions of dollars per year in oil, gas or mineral revenue, these countries rank among the worst when it comes to economic growth, authoritarian governance, poverty and political instability. The Afghan reports should spur immediate action in Congress to ensure transparency in how U.S. and international companies tap these resources. Transparency in the oil, gas and mining sectors has been endorsed for years by the G-8, the International Monetary Fund, the World Bank and regional development banks. It is clear to financial leaders that transparency is key to holding governments accountable for the needs of their citizens — and for greater energy security overall. If citizens and international organizations know how much money a country is paid for oil access, it is harder for its leader to claim the government would happily build roads, schools and hospitals but cannot afford them. Transparency will help those who want to follow the money to combat corruption, poverty and violence. In countries with rival ethnic groups, like Afghanistan, it also helps ensure that revenues are distributed equitably. Afghanistan has made a good first step by joining the Extractive Industries Transparency Initiative, a voluntary international standard designed to promote transparency in the oil, gas and mining sectors. This group has made tremendous strides in changing the culture of secrecy that surrounds the extractive industries. But too many countries and companies remain outside this system. It is time to create an international standard for transparency in law. Secrecy of extractive payments carries real risks for citizens — and investors. We introduced the Energy Security Through Transparency Act to require most extractive industries — including oil, gas and mining companies — to disclose what they pay local governments for access to natural resources. This simple step, adding information to filings already required by the Securities and Exchange Commission, could help promote civil society and combat corruption in countries both blessed and cursed with natural resources. The extractive industries face unique material and reputational risks in the form of country-specific taxes and regulations. Challenges are compounded by the substantial capital companies need and the importance of natural resource access to the national security and strategic objectives of the United States and other major energy and mineral consumers. Creating a reporting requirement with the SEC can capture a larger portion of the international extractive corporations than any other single mechanism — thereby setting a global standard for transparency and promoting a level playing field. Our bill could help in following the money trail, making it harder to hide corruption and easier to bring the reforms needed to ensure that the blessing of natural resources does not turn into a curse. Afghanistan is at a crossroads. If we want to leave Afghanistan with a viable economy and a stable government, we have to help the nation get this right. Our bill could be the linchpin in a far larger U.S. and international effort, at all levels of government, to promote transparency and open the books in Afghanistan. The newfound resources would then lead to a new era of prosperity — and not be squandered through corruption. Afghanistan’s future — and the success of U.S. and NATO men and women serving in Afghanistan — are at stake. Sens. Ben Cardin (D-Md.) and Dick Lugar (R-Ind.) serve on the Senate Foreign Relations Committee.

  • Chairman Cardin and Senator Wicker Colloquy on Russia

    Mr. WICKER. Mr. President, I am appreciative that I am able to join today with my friend and colleague, Senator Cardin. I appreciate his joining me today to discuss an issue of great concern to both of us and to human rights advocates around the world. That is the ongoing trial in Russia of Mikhail Khodorkovsky and his business partner Platon Lebedev. In June of last year, Senator Cardin joined me in introducing a resolution urging the Senate to recognize that Khodorkovsky and Lebedev have been denied basic due process rights under international law for political reasons. It is particularly appropriate, I think, that Senator Cardin and I be talking about this this afternoon because in a matter of days, Russian President Medvedev will be coming to the United States and meeting with President Obama. I think this would be a very appropriate topic for the President of the United States to bring up to the President of the Russian Federation.  I can think of no greater statement that the Russian President could make on behalf of the rule of law and a movement back toward human rights in Russia than to end the show trial of these two individuals and dismiss the false charges against them.  Since his conviction, Khodorkovsky has spent his time either in a Siberian prison camp or a Moscow jail cell. Currently, he spends his days sitting in a glass cage enduring a daily farce of a trial that could send him back to Siberia for more than 20 years. Amazingly, Mikhail Khodorkovsky remains unbroken.  I think it appropriate that President Obama and Secretary of State Clinton have committed to resetting relations with the country. I support them in this worthwhile goal. Clearly, our foreign relations can always stand to be improved. I support strengthening our relations, particularly with Russia. However, this strengthening must not be at the expense of progress on the issue of the rule of law and an independent judiciary. The United States cannot publicly extol the virtues of rule of law and an independent judiciary and at the same time turn a blind eye to what has happened to Khodorkovsky and Lebedev.  I urge President Obama and Secretary Clinton to put the release of these two men high on the agenda as we continue to engage with Russia, and high on the agenda for President Medvedev's upcoming meeting here in Washington, DC.  Mr. CARDIN. Mr. President, I thank Senator Wicker for taking this time for this colloquy. He has been a real champion on human rights issues and on bringing out the importance for Russia to move forward on a path of democracy and respect for human rights. He has done that as a Senator from Mississippi. He has done that as a very active member of the Helsinki Commission. I have the honor of chairing the Helsinki Commission, which I think is best known because of its fight on behalf of human rights for the people, particularly in those countries that were behind the Iron Curtain—particularly before the fall of the Soviet Union, where we were regularly being the voices for those who could not have their voices heard otherwise because of the oppressive policies of the former Soviet Union.  So in the 1990s, there was great euphoria that at the end of the Cold War, the reforms that were talked about in Russia—indeed, the privatization of many of its industries—would at last bring the types of rights to the people of Russia that they so needed. But, unfortunately, there was a mixed message, and in the 1990s, I think contrary to Western popular opinion at the time, Russia did not move forward as aggressively as we wanted with freedom and democracy.  It is interesting that Mikhail Khodorkovsky, who was part of the Communist elite, led the country into privatization in the right way. He took a company, Yukos Oil Company, and truly made it transparent and truly developed a model of corporate governance that was unheard of at the time in the former Soviet Union and unheard of in the Russian Federation, and he used that as a poster child to try to help the people of Russia. He started making contributions to the general welfare of the country, which is what we would like to see from the business and corporate community. He did that to help his own people. But he ran into trouble in the midst of the shadowy and violent Russian market, and his problems were encouraged many times by the same people who we thought were leading the reform within the Russian Federation.  By 1998, with the collapse of the ruble, the people of Russia were disillusioned; they found their prosperity was only temporary. The cost of imports was going up. The spirit of nationalism, this nationalistic obsession, became much more prominent within the Russian Federation, and the move toward privatization lost a lot of its luster.  The rise of Mr. Putin to power also established what was known as vertical power, and independent companies were inconsistent with that model he was developing to try to keep control of his own country. Therefore, what he did under this new rubric was to encourage nationalization spirit, to the detriment of independent companies and to the detriment of the development of opposition opportunity, democracy, and personal freedom. We started to see the decline of the open and free and independent media.  All of this came about, and a highly successful and independent company such as Yukos under the leadership of Mikhail Khodorkovsky was inconsistent with what Mr. Putin was trying to do in Russia. As a result, there was a demise of the company, and the trials ensued. My friend Senator Wicker talked about what happened in the trial. It was a miscarriage of justice. It was wrong. We have expressed our views on it. And it is still continuing to this day. I thank Senator Wicker for continuing to bring this to the Members' attention and I hope to the people of Russia so they will understand there is still time to correct this miscarriage of justice.  Mr. WICKER. I thank my colleague.  I will go on to point out that things started coming to a head when Mr. Khodorkovsky started speaking out against the Russian Government, led by President Putin, and his company that he headed, Yukos, came into the sights of the Russian Federation.  Mr. Khodorkovsky visited the United States less than a week before his arrest. He was in Washington speaking to Congressman Tom Lantos, the late Tom Lantos, a venerated human rights advocate from the House of Representatives, who had seen violations of human rights in his own rights. Mr. Khodorkovsky told Congressman Lantos that he had committed no crimes but he would not be driven into exile. He said: "I would prefer to be a political prisoner rather than a political immigrant." And, of course, a political prisoner is what he is now.  Shortly after his arrest, government officials accused Yukos Oil of failing to pay more than $300 billion in taxes. At the time, Yukos was Russia's largest taxpayer. Yet they were singled out for tax evasion. And PricewaterhouseCoopers had recently audited the books of Yukos, and the government tax office had approved the 2002 to 2003 tax returns just months before this trumped-up case was filed.  The Russian Government took over Yukos, auctioned it off, and essentially renationalized the company, costing American stockholders $7 billion and stockholders all around the country who had believed Russia was liberalizing and becoming part of the market society. A Swiss court has ruled the auction illegal. A Dutch court has ruled the auction illegal. But even more so, they tried these two gentlemen and placed them in prison. Mr. Khodorkovsky apparently had the mistaken impression that he was entitled to freedom of speech, and we discovered that in Russia, at the time of the trial and even today, he was not entitled, in the opinion of the government, to his freedom of speech.  A recent foreign policy magazine called Khodorkovsky the "most prominent prisoner" in Vladimir Putin's Russia and a symbol of the peril of challenging the Kremlin, which is what Mr. Khodorkovsky did.  I would quote a few paragraphs from a recent AP story by Gary Peach about the testimony of a former Prime Minister who actually served during the Putin years:  A former Russian prime minister turned fierce Kremlin critic came to the defense of an imprisoned tycoon on Monday—  This is a May 24 article—  -- telling a Moscow court that prosecutors' new charges of massive crude oil embezzlement are absurd.  What we now find is that when Mr. Khodorkovsky is about to be released from his first sentence, new charges have arisen all of a sudden. After years and years of imprisonment in Siberia, new charges have arisen.  Mikhail Kasyanov, who headed the government in 2000-2004, told the court that the accusations against Khodorkovsky, a former billionaire now serving an eight-year sentence in prison, had no basis in reality.  This is a former Prime Minister of the Russian Federation.  Prosecutors claim that Khodorkovsky, along with his business partner [who is also in prison] embezzled some 350 million tons—or $25 billion worth—of crude oil while they headed the Yukos Oil Company.  That's all the oil Yukos produced over six years, from 1998 to 2003. I consider the accusation absurd.  He said that while Prime Minister, he received regular reports about Russia's oil companies and that Yukos consistently paid its taxes. Kasyanov, who served as Prime Minister during most of President Putin's first term, said that both the current trial and the previous one, which ended with a conviction, were politically motivated. So I would say this is indeed a damning accusation of the current trial going on, even as we speak, in Moscow.  Mr. CARDIN. Senator Wicker has pointed out in I think real detail how the dismantling of the Yukos Oil Company was done illegally under any international law; it was returning to the Soviet days rather than moving forward with democratic reform. As Senator Wicker has pointed out, the personal attack on its founders—imprisoning them on charges that were inconsistent with the direction of the country after the fall of the Soviet Union—was another miscarriage of justice, and it is certainly totally inconsistent with the statements made after the fall of the Soviet Union.  The early Putin years were clearly a return to nationalism in Russia and against what was perceived at that time by the popular Western view that Russia was on a path toward democracy. It just did not happen. And it is clearly a theft of a company's assets by the government and persecution, not prosecution, of the individuals who led the company toward privatization, which was a clear message given by the leaders after the fall of the Soviet Union.  This cannot be just left alone. I understand the individuals involved may have been part of the elite at one time within the former Soviet Union. I understand, in fact, there may have been mixed messages when you have a country that is going through a transition. But clearly what was done here was a violation of their commitments under the Helsinki Commission, under the Helsinki Final Act. It was a violation of Russia's statements about allowing democracy and democratic institutions. It was a violation of Russia's commitments to allow a free market to develop within their own country. All of that was violated by the manner in which they handled Mr. Khodorkovsky as well as his codefendant and the company itself. And it is something we need to continue to point out should never have happened.  The real tragedy here is that this is an ongoing matter. As Senator Wicker pointed out, there is now, we believe, an effort to try him on additional charges even though he has suffered so much. And it is a matter that—particularly with the Russian leadership visiting the United States, with direct meetings between our leaders, between Russia and the United States—I hope can get some attention and a chance for the Russian Federation to correct a miscarriage of justice.  Mr. WICKER. Indeed, the second show trial of Mr. Khodorkovsky has entered its second year. We have celebrated the anniversary of the second trial.  I ask unanimous consent to have printed in the Record an editorial by the Washington Post dated June 9, 2010, at this point.  There being no objection, the material was ordered to be printed in the Record, as follows:  [From the Washington Post, June 9, 2010]  Show Trial: Should Ties to Russia Be Linked to Its Record on Rights?  Russia's government has calculated that it needs better relations with the West to attract more foreign investment and modern technology, according to a paper by its foreign ministry that leaked to the press last month. Prime Minister Vladimir Putin has recently made conciliatory gestures to Poland, while President Dmitry Medvedev sealed a nuclear arms treaty with President Obama. At the United Nations, Russia has agreed to join Western powers in supporting new sanctions against Iran.  Moscow's new friendliness, however, hasn't led to any change in its repressive domestic policies. The foreign ministry paper says Russia needs to show itself as a democracy with a market economy to gain Western favor. But Mr. Putin and Mr. Medvedev have yet to take steps in that direction. There have been no arrests in the more than a dozen outstanding cases of murdered journalists and human rights advocates; a former KGB operative accused by Scotland Yard of assassinating a dissident in London still sits in the Russian parliament.  Perhaps most significantly, the Russian leadership is allowing the trial of Mikhail Khodorkovsky, a former oil executive who has become the country's best-known political prisoner, to go forward even though it has become a showcase for the regime's cynicism, corruption and disregard for the rule of law. Mr. Khodorkovsky, who angered Mr. Putin by funding opposition political parties, was arrested in 2003 and convicted on charges of tax evasion. His Yukos oil company, then Russia's largest, was broken up and handed over to state-controlled firms.  A second trial of Mr. Khodorkovsky is nearing its completion in Moscow, nearly a year after it began. Its purpose is transparent: to prevent the prisoner's release when his first sentence expires next year. The new charges are, as Mr. Putin's own former prime minister testified last week, absurd: Mr. Khodorkovsky and an associate, Platon Lebedev, are now accused of embezzling Yukos's oil production, a crime that, had it occurred, would have made their previously alleged crime of tax evasion impossible.  Mr. Khodorkovsky, who acquired his oil empire in the rough and tumble of Russia's transition from communism, is no saint, but neither is he his country's Al Capone, as Mr. Putin has claimed. In fact, he is looking more and more like the prisoners of conscience who have haunted previous Kremlin regimes. In the past several years he has written numerous articles critiquing Russia's corruption and lack of democracy, including one on our op-ed page last month.  Mr. Obama raised the case of Mr. Khodorkovsky last year, and the State Department's most recent human rights report said the trial "raised concerns about due process and the rule of law." But the administration has not let this obvious instance of persecution, or Mr. Putin's overall failure to ease domestic repression, get in the way of its "reset" of relations with Moscow. If the United States and leading European governments would make clear that improvements in human rights are necessary for Moscow to win trade and other economic concessions, there is a chance Mr. Putin would respond. If he does not, Western governments at least would have a clearer understanding of where better relations stand on the list of his true priorities.  Mr. WICKER. The editorial points out that Russia's Government is trying to think of ways to attract more foreign investment, and it juxtaposes this desire for more Western openness and investment with the Khodorkovsky matter and says that this trial has become a showcase for the Russian regime's cynicism, corruption, and disregard for the rule of law.  It goes on to say: The new charges are, as Mr. Putin's own Prime Minister testified last week, absurd. Mr. Khodorkovsky and his associate, Platon Lebedev, are now accused of embezzling Yukos Oil's production—a crime that, had it occurred, would have made their previously alleged crime of tax evasion impossible. So the cynicism of these charges is that they are inconsistent with each other. Yet, in its brazenness, the Russian Federation Government and its prosecutors proceed with these charges.  The article goes on to say: Mr. Khodorkovsky is looking more and more like a prisoner of conscience who haunted the previous criminal regime.  It says:  Mr. Obama raised the case of Mr. Khodorkovsky last year, and the State Department's most recent human rights report said the trial "raised concerns about due process and the rule of law."  I will say they raised concerns.  Let me say in conclusion of my portion—and then I will allow my good friend from Maryland to close—this prosecution and violation of human rights and the rule of law of Lebedev and Khodorkovsky has brought the censure of the European Court of Human Rights that ruled that Mr. Khodorkovsky's rights were violated. A Swiss court has condemned the action of the Russian Federation and ruled it illegal. A Dutch court has said it is illegal. It has been denounced by such publications as Foreign Policy magazine, the Washington Post, a former Prime Minister who actually served under Mr. Putin. It has been denounced in actions and votes by the European Parliament, by other national parliaments, by numerous human rights groups, and by the U.S. State Department.  I submit, for those within the sound of my voice—and I believe there are people on different continents listening to the sound of our voices today—it is time for the Russian President to step forward and put an end to this farce, admit that this trial has no merit in law, and it is time for prosecutors in Moscow to cease and desist on this show trial and begin to repair the reputation of the Russian Federation when it comes to human rights and the rule of law.  Mr. CARDIN. Mr. President, I thank Senator Wicker for bringing out the details of this matter. It has clearly been recognized and condemned by the international community as against international law. It is clearly against the commitments Russia had made when the Soviet Union fell. It is clearly of interest to all of the countries of the world. Originally, when Yukos oil was taken over, investors outside of Russia also lost money. So there has been an illegal taking of assets of a private company which have affected investors throughout the world, including in the United States. It has been offensive to all of us to see imprisoned two individuals who never should have been tried and certainly should not be in prison today. All that is offensive to all of us. But I would think it is most offensive to the Russian people.  The Russian people believed their leaders, when the Soviet Union collapsed, that there would be respect for the rule of law; that there would be an independent judiciary, and their citizens could get a fair trial.  We all know—and the international community has already spoken about this—that Mikhail Khodorkovsky did not get a fair trial. So the commitment the Russian leaders made to its own people of an independent and fair judiciary has not been adhered to. This is not an isolated example within Russia. We know investigative reporters routinely are arrested, sometimes arrested with violence against them. We know opposition parties have virtually no chance to participate in an open system, denying the people a real democracy. But here with justice, Russia has a chance to do so.  I find it remarkable that Mr. Khodorkovsky's spirits are still strong, as Senator Wicker pointed out. Let me read a recent quote from Mr. Khodorkovsky himself, who is in prison:  “You know, I really do love my country, my Moscow. It seems like one huge apathetic and indifferent anthill, but it's got so much soul. . . . You know, inside I was sure about the people, and they turned out to be even better than I'd thought.” I think Senator Wicker and I both believe in the Russian people. We believe in the future of Russia. But the future of Russia must be a nation that embraces its commitments under the Helsinki Final Act. It has to be a country that shows compassion for its citizens and shows justice. Russia can do that today by doing what is right for Mr. Khodorkovsky and his codefendant: release them from prison, respect the private rights and human rights of its citizens, and Russia then will be a nation that will truly live up to its commitment to its people to respect human rights and democratic principles.  Again, I thank Senator Wicker for bringing this matter to the attention of our colleagues. It is a matter that can be dealt with, that should be dealt with, and we hope Russia will show justice in the way it handles this matter.  Mr. WICKER. I thank my colleague and yield the floor.   

  • 2009 OSCE Mediterranean Conference in Cairo is a Sucess

    By Alex Johnson, Policy Advisor and Marlene Kaufmann, General Counsel In December 2009, Commission staff attended the 2009 OSCE Mediterranean Conference on “The Mediterranean Partners and the OSCE: Cooperation Toward Enhanced Security and Stability” in Cairo, Egypt. This conference brought together 33 of the 56 OSCE participating States, four of the Asian Partners for Cooperation (Australia, South Korea, Japan, and Thailand), and representation from all of the Mediterranean Partners for Cooperation. The Palestinian National Authority attended at the invitation of the host government. The conference featured three sessions focusing on the politico-military aspects of security in the OSCE area, implications of the current financial crisis on migration, and prospects for OSCE Mediterranean Cooperation. These sessions featured presentations from Mediterranean Partner OSCE delegations, academics, international organizations, and relevant ministry representatives. Participation in this conference was at a high level with the majority of the participating States and all of the Mediterranean Partners for Cooperation represented by their Ambassadors to the OSCE. Members of the Parliamentary Assembly of the OSCE in attendance included a Vice-President and officers of two of the Assembly’s General Committees. Discussion in all of the sessions was lively with active participation by the Ambassadors, particularly those representing the Mediterranean Partners, as well as other public and private sector participants. A number of themes emerged across the sessions including agreement that the partnership between the OSCE participating States and their Mediterranean Partners has strengthened. The establishment of the Partnership Fund and the Athens’ Ministerial invitation to the Partners to contribute to the Corfu Process are largely attributed with bolstering the strength of the Partnership. Findings included a future activity emphasis on specific areas of cooperation by setting both short and long-term goals and providing a mechanism to assess effectiveness. In addition, the OSCE Mediterranean Partnership should undertake its work in coordination with other regional organizations and institutions, through which the possibility of expanding the Partnership could be considered. Session 1: Politico-military aspects of security in the OSCE area and the Mediterranean The session’s moderators were Ambassador Ian Cliff, Head of the delegation of the United Kingdom to the OSCE and Ambassador Taous Feroukhi, Permanent Representative of Algeria to the OSCE. Panelists included Mr. Pascal Heyman, Deputy Director of the OSCE Conflict Prevention Center, Ambassador Gyorgy Molnar, Head of the Permanent Mission of the Republic of Hungary to the OSCE, and Dr. Mostafa Elwy Saif, Professor and Chairman of the Department of Political Science, Cairo University and Member of the Shura Council. Ambassador Cliff opened the discussion by pointing out that the OSCE had developed expertise on crisis prevention and conflict resolution, particularly regarding protracted conflicts. He believes there has recently been some incremental progress. Pascal Heyman emphasized that the OSCE has developed a unique conflict prevention and resolution expertise through constant political dialogue, dedicated crisis management mechanisms such as fact-finding missions, the Conflict Prevention Center, confidence and security building measures and the establishment of field operations. While these are effective tools, Heyman maintained that workable and lasting conflict resolution depends ultimately on the political will of the participating States and the parties in a conflict. Ambassador Molnar spoke to the destabilizing consequences of transnational or multi-dimensional threats to security in the OSCE space. He noted that participating States are attempting to address these threats through the Maastricht Strategy and decisions adopted at both the Madrid and Athens Ministerials regarding transnational threats, combating terrorism, and promoting effective law enforcement and police training programs. Dr. Saif presented a detailed review of Egypt’s political and military security concerns and concluded that the primary challenges to his country’s security stem from the Israeli-Palestinian conflict, Iran’s regional and nuclear ambitions, water shortages, the political situations in Iraq and Afghanistan, and the proliferation of weapons of mass destruction in the Middle East. Ambassador Feroukhi said that the absence of a dedicated institutional forum in the Mediterranean region hampered the development of effective security mechanisms but felt that the development of confidence-building measures – particularly involving civil society and academic communities – should be encouraged as a first step. She also agreed that a just resolution of the Israeli-Palestinian conflict and better protection of the environment were vital for the stability and security of the Mediterranean region. All delegations who participated in the discussion welcomed the Athens Ministerial decision to invite input from the Partners for Cooperation on furthering the Corfu Process. A number of delegations raised the possibility of enlarging the Mediterranean Partnership to include the Palestinian National Authority, while others pointed out the difficulties of doing so, due to the fact that the OSCE is a state-based organization. The Partnership Fund was hailed as an effective tool to enhance the Mediterranean Partnership and it should continue to be used to sustain a culture of cooperation, including the possible creation of a clearing house on water issues within the OSCE. It was also stressed that the OSCE should coordinate its activities with relevant international and regional organizations. The moderators stated the following conclusions emanating from the discussion: The confidence and security building measures as well as early warning mechanisms developed in the framework of the OSCE could serve as a model and help to foster cooperation and confidence in the Mediterranean region; the participation of the Partners in the Corfu process should enhance the Mediterranean Partnership; and, the Partnership should move forward based on concrete, achievable objectives with possible long-term goals of establishing a Mediterranean conflict prevention center and developing regional codes of conduct to enhance dialogue and cooperation. Session 2: Implications of the current economic and financial crisis on migration The second session was moderated by Mr. Daman Bergant, Head of the OSCE Department of the Ministry of Foreign Affairs of Slovenia, and panelists included Ambassador Omar Zniber, Head of the Delegation of the Kingdom of Morocco to the OSCE, and Ms. Rebecca Bardach, Director of the Center for International Migration and Integration of the American Jewish Joint Distribution Committee. Mr. Bergant began the session by explaining that the global economic and financial crisis has an impact on migration and development. He outlined several topics to guide the discussion including the development of cooperative migration policies between the OSCE and the Mediterranean Partners; dialogue on how to prevent and combat illegal migration; international and regional cooperation on preventing trafficking in human beings, including trafficking for forced labor; protecting the human rights of migrants, including through combating hate crimes; and, the role of migrants in promoting tolerance and non-discrimination. Ambassador Zniber spoke to the impact of the current economic crisis on both migrants and development. He pointed out that the impact of the crisis makes migrants even more vulnerable and they face increased discrimination and further marginalization in society. Decreasing remittances, said the Ambassador – 10 to 15% in 2009 according to the World Bank – are a destabilizing factor, impacting countries of origin like Morocco which are particularly dependent on revenues from abroad. The Ambassador welcomed the Athens Ministerial Council Decision on migration management and urged that the OSCE continue its work in this area, in particular, by facilitating dialogue, exchanging best practices and fighting discrimination against migrants. Specifically, he recommended that the OSCE and its Mediterranean Partners establish a working group on migration management and related security aspects; develop a multi-dimensional and long-term approach on migration management; promote regional cooperation and partnerships between all responsible parties including countries of origin, transit and destination, civil society and the private sector; create reintegration and training programs; and, protect the human rights of migrants and their families. Ms. Bardach gave a comprehensive review of migration issues impacting Israel. She explained that only in the last two decades has Israel seen a significant increase in migration flows across its borders. This is presenting challenges to the government in managing migration and dealing with large numbers of refugees, asylum seekers, and labor migrants, in addition to human smuggling and trafficking. While Israeli efforts to combat trafficking for sexual exploitation have resulted in marked progress, she said, efforts to combat labor trafficking are still in their infancy. Based on this experience, Ms. Bardach suggested that the OSCE should develop policies to address irregular recruitment practices and raise awareness about such practices; develop cooperation on both the regional and bilateral level to increase information sharing, strengthen border controls and address the humanitarian needs of migrants; develop culturally sensitive tools for law enforcement officials; and, improve the reception and registration of refugees, including assisted voluntary return. During the discussion following the panel presentations, a number of delegations echoed the view that the OSCE and its Mediterranean Partners should serve as a broad regional platform for a coordinated dialogue on migration, and should develop a comprehensive strategy to prevent cross-border trafficking that includes the private sector. The contributors in this session demonstrated the need for better data collection and sharing regarding migration in the Euro-Mediterranean context. This goal was identified as a potential priority for the Partnership Fund. Proposals distributed by the Moroccan and Egyptian delegations have both cited the importance of developing research institutions, which could serve to further the goal of better data collection and expertise sharing. Session 3: Prospects for OSCE Mediterranean Cooperation The third session Chaired by Ambassador Kairat Abdrakhmanov, Head of the Permanent Mission of Kazakhstan to the OSCE and Chair of the OSCE Permanent Council, focused on a review of achievements to date in improving dialogue and cooperation between the participating States and the Mediterranean Partners, and developing effective follow-up on recommendations of previous seminars and ministerial declarations referencing the Partners. Featured speakers were Ambassador Makram Queisi, Permanent Representative of Jordan to the OSCE, and Mr. Agustin Nunez, Deputy Head of Mission of the Permanent Mission of Spain to the OSCE. Ambassador Queisi presented four areas in which he felt cooperation could improve the relationship between the OSCE and the Mediterranean region – environmental aspects of security such as soil erosion, desertification and water management including the possible creation of an environmental data collection center in the region; enhanced border security to combat terrorism and trafficking including cooperation with the Regional Counter Terrorism Training Center in Jordan; combating discrimination against Muslims; and developing nuclear non-proliferation strategies for the region. The Ambassador also stated his view that Partner status should be granted to the Palestinian National Authority as a confidence building measure. Mr. Nunez reviewed the development of the participating State’s cooperation with their Mediterranean Partners including increased participation by Mediterranean Partners in OSCE activities and recent examples of concrete cooperation on issues such as countering terrorism, promoting tolerance and freedom of the media, and enhancing border management. He emphasized the importance of having a strategic vision for the Partnership and commended the proposal by the Kazakh Chair of the Mediterranean Contact Group that three priority areas should be identified for developing projects to be financed by the Partnership Fund. Mr. Nunez concurred with Ambassador Queisi’s view that the Partnership should be enlarged to include the Palestinian National Authority and noted that Spain had circulated two food-for-thought papers on this topic in 2008. Following the presentations, active debate among the delegations ensued and focused primarily on the current status of the Partnership and its achievements to date, proposals for additional areas of cooperation, procedural improvements and the issue of possible enlargement of the Partnership. Enhanced cooperation in the areas of promoting tolerance and non-discrimination, freedom of the media, gender, combating trafficking in human beings, energy security, security aspects of climate change, water management and fighting corruption, drug trafficking and terrorism was discussed. It was suggested that working groups should be established to examine these issues and make recommendations for action. Participants also called for the establishment of a system for effective follow-up on recommendations and agreed proposals, as well as enhanced coordination with other regional institutions and organizations. The participants actively discussed the question of enlarging the Mediterranean Partnership with some participants supporting the granting of Partner status to the Palestinian National Authority as a confidence building measure conducive to dialogue and peace in the region. Debate over this particular consideration illuminated the need for an expeditious response to the request of the Palestinian National Authority (PNA) to become an OSCE Mediterranean Partner for Cooperation. It is apparent that a number of participating States and partners recognize the value of their participation in Mediterranean Dimension activities. Yet, disagreement arises when considering the implications of recognizing a territory as a full-fledged partner. Some participating States see the case of the PNA as unique in that there is already international agreement on the existence of a future Palestinian State. Other participating States believe that affording a territory official status sets a precedent for other territories seeking recognition in the OSCE region. A number of these leaders believe that a future Palestinian State should be granted partner status after formal international recognition. Thus, it will be unlikely that consensus on partnership with the PNA will be reached at this time and the OSCE Chair-in-Office should issue a formal response acknowledging this. The question of PNA participation will continue to mire productive dialogue on other opportunities for cooperation until a decisive response is issued by the OSCE Chair-in-Office. Alternatives for their participation should however be explored. Some possibilities include establishment of an alternative status of “observer” or other title within the framework of the Partners for Cooperation to allow for a transitional process of full recognition as a Partner. In addition, some sort of agreement should be established on recommended countries outside of the Mediterranean Partnership for invitations to OSCE Mediterranean Dimension activities. Conclusion: Future Considerations for Annual Conference Administration A tremendous success of the 2009 Mediterranean Conference was the engagement of the Ambassadors from the Mediterranean Partners in the agenda. Each panel featured a Mediterranean Partner Ambassador, which helped balance the contributions during the discussion. Previous conferences did not adequately balance the opportunities for contributions between the Mediterranean Partners and the OSCE participating States. In the most grievous of incidences, panelists and participating States at the 2008 Mediterranean Conference in Amman, Jordan took so much time during the discussion that contributions from representatives of the Partners were significantly curtailed. It only makes sense that the contributions of the Partners be prioritized when the purpose of the conference is enhancing cooperation with their respective countries. Meaningful participation by the Partners remains the only way to sustain the future of the OSCE Mediterranean Dimension. A recurring challenge of the annual Mediterranean conference is a lack of willingness to host the event among the Mediterranean Partners. The venue question remains an issue that paralyzes cooperation among the Mediterranean Partners and has the potential to diminish the productivity of the conference each year. The venue question stems from a number of factors. Not only is the conference capital-intensive for the hosting State, political considerations regarding the participants in the OSCE Mediterranean Dimension keep Partners like Algeria and Tunisia from taking a leadership role in hosting the event. Thus, active Partners like Egypt, Jordan, Morocco, and Israel bear the burden of hosting the conference most frequently. Ownership of the OSCE Mediterranean Dimension through hosting the conference and originating initiatives remains an ideal that the partnership should aspire to. However, it is not unprecedented that participating States would host the conference. Previous Mediterranean seminars were hosted by Greece (2002), Croatia (2001), Slovenia (2000), and Malta (1998), prior to the elevation of the event to a “conference” by the Greek chairmanship of the OSCE in 2008. Participating States have offered to host the upcoming 2010 conference. Proceeding with an established venue earlier in the year may provide for more time for substantive topic development. Such a deviation from Mediterranean Partner ownership of the event should be seen as an exception until a more appropriate mechanism for rotating the responsibility of hosting the conference is devised. The 2009 Mediterranean Conference was well executed by the Egyptian government, especially considering the short time between their final commitment to do so and the date of the event. However, NGO participation was notably missing. The 2008 OSCE Mediterranean Conference in Amman featured a session for NGOs from throughout the Mediterranean region on the day prior to the conference and subsequently included a robust NGO presence during the conference proceedings. OSCE Participating States led by the United States made extra-budgetary contributions to the OSCE Partnership Fund to help facilitate a robust NGO presence. International organization representatives that were invited to present on the session panels in the 2009 Cairo conference were among the few non-governmental participants present. It is true that participating States lack the wherewithal to contribute annually to facilitate an NGO presence especially given global fiscal challenges. However, exploring partnerships with appropriate foundations, endowments, and institutions involved in Euro-Mediterranean engagement may result in a consistent and strong NGO presence at events within the OSCE Mediterranean Dimension.

  • Natural Resource Charter

    Mr. President, I am pleased to report to you and my colleagues on the excellent work that is being done to help developing countries capitalize on their natural resource wealth. This unique initiative is called the Natural Resource Charter, and it is designed to give countries the tools and knowledge they need to develop their natural resources for the good of their citizens in a transparent and accountable manner. As a collective work coordinated by established academics and development experts, the charter provides a set of policy principles for governments on the successful translation of natural resource wealth into fair and sustainable development. At the U.S. Helsinki Commission we monitor 56 countries, including the United States, with the mandate to ensure compliance to commitments made under the Helsinki Final Act with focus on three dimensions: security, economics and the environment, and human rights. The management of extractive industries has broad implications covering all three dimensions of the Helsinki process. We know that oil, gas, and mining are potential sources of conflict and their supply has a direct impact on our national security. The often negative economic consequences for resource rich countries are well documented and we see constant reminders of the environmental impact of extraction both at home and abroad. Finally, the resultant degradation of human rights in countries that are corrupted by resource wealth is a real concern that we must address. When the charter was launched last year, I was struck by how far we have come in terms of bringing the difficult conversation on extractive industries into the lexicon of world leaders. Only a few short years ago, the word "transparency'' was not used in the same sentence with oil, gas or mining revenue. After the launch of the Extractive Industries Transparency Initiative in 2002, we have seen a major shift in attitude. This was followed by G8 and G20 statements in support of greater revenue transparency as a means of achieving greater economic growth in developing countries. But it is clear that given the challenge ahead, more than statements are needed. The Natural Resource Charter is a concrete and practical next step in the right direction. Economists have found that many of the resource-rich countries of the world today have fared notably worse than their neighbors economically and politically, despite the positive opportunities granted by resource wealth. The misuse of extractive industry revenues has often mitigated the benefits of such mineral wealth for citizens of developing nations; in many cases the resources acting instead as a source of severe economic and social instability. In addressing the factors and providing solutions for such difficulties, the Natural Resource Charter aims to be a global public resource for informed, transparent decision-making regarding extractive industry management. The charter's overarching philosophy is that development of natural resources should be designed to secure maximum benefit for the citizens of the host country. To this end, its dialogue includes a special focus on the role of informed public oversight through transparency measures such as EITI in establishing the legitimacy of resource decisions and attracting foreign investment. On fiscal issues, the charter presents guidelines for the systematic reinvestment of resource revenues in national infrastructure and human capital with the goal of diminishing effects of resource price volatility and ensuring long-term economic growth. This week the commission will hold a public briefing on the Natural Resource Charter and I am pleased to say that there was a candid conversation between the audience and the panel that revealed much about how the charter could be used to promote human rights and good governance. The briefing also addressed ways that U.S. support of democratic and economically sensible extractive industry standards could have a powerful effect in securing the welfare and freedoms of citizens in resource-rich countries. In particular, it was noted that the Energy Security Through Transparency Act, S. 1700, a bipartisan bill I introduced with my colleague Senator Lugar and 10 other colleagues is consistent with the principles set out in the Natural Resource Charter. I look forward to working with my colleagues to ensure our continued progress on these issues.

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