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hearing
Russia's Alpine Assets: Money Laundering and Sanctions Evasion in Switzerland
Tuesday, July 18, 2023Switzerland has for years been a primary destination for Russian money laundering and, since the Russian invasion of Ukraine, a weak link in Western sanctions enforcement. This Helsinki Commission hearing examined Switzerland’s poor track record of rooting out dirty Russian money and examined potential paths forward for U.S. policymakers in persuading Switzerland to uphold its commitments to its democratic partners. Bill Browder, head of the Magnitsky Global Justice Campaign, outlined his own experiences with Swiss officials undermining investigations into the money laundering cases linked to Sergei Magnitsky’s discovery of over $230 million in tax fraud by Russian officials. Browder traced Swiss officials’ attempts to direct corruption by Russian money, stating that Switzerland “wants to be seen as doing something while in reality doing nothing” to continue profiting off of Russian assets. Since the Swiss legal and regulatory systems have both failed to show a commitment to effective oversight of Russian money, Browder asked commissioners and other government officials to consider targeted sanctions under the Magnitsky Act against Swiss officials involved in quashing the investigations in question, including the sitting Prosecutor General. Drew Sullivan, co-founder and publisher of the Organized Crime and Corruption Reporting Project (OCCRP), testified that Swiss financial regulators prioritize the interests of the Swiss banking sector over true oversight and legal compliance, emphasizing that a fair audit of Swiss banks would show what his organization estimates is over $400 billion in illegal money, much of which is linked to Russia. Mr. Sullivan urged U.S. and EU policymakers to exercise their regulatory jurisdiction over dollar- and euro-denominated accounts to force Swiss banks into compliance with stronger transparency regulations. He views severe pressure from other democratic governments as the only way to ensure more responsible Swiss financial regulation. Olena Tregub, secretary general of the Ukrainian civil society organization the Independent Defense Anti-Corruption Committee (NAKO), underlined Switzerland’s hypocritical narrative of neutrality given that Switzerland is the leading European country in terms of dual-use weapons components found in Russian arms. Additionally, Switzerland’s lax sanctions enforcement has allowed the country to become a safe haven for Russian money despite Switzerland nominally joining EU sanctions regimes against Russia. Tregub advocated for a U.S.-led multilateral working group, including Switzerland, to prevent the export of dual-use technologies to Russia as well as additional pressure on Switzerland to enforce European sanctions it has already agreed to. Commissioners thanked witnesses for bringing visibility to Switzerland’s need for improvement in these areas and questioned them on what the most effective U.S. responses would be, as well as how likely they think their proposed solutions are to be implemented.
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press release
Hearing: Supporting a Democratic and Secure Moldova
Thursday, July 06, 2023Wednesday, July 12, 2023 2:00 pm Cannon House Office Building, Room 210 Live stream: https://www.youtube.com/watch?v=jm-R6rfQbCo In recent years, Moldova has enacted numerous reforms under current Moldovan President Maia Sandu to strengthen its democratic institutions, combat corruption and kleptocracy, and integrate with the European Union. In 2022, the European Union granted Moldova “Candidate” status in its EU bid alongside Ukraine. Moldova’s many accomplishments are made all the more remarkable given the ongoing destabilizing effects of Russia’s illegal war on Ukraine and the Putin regime’s efforts to undermine Moldova’s security, economy, and political processes. Nonetheless, Moldova’s government and people have doggedly pursued a liberal democratic path, and have opened their country to hundreds of thousands of Ukrainian citizens who have transited or found refuge in the country in the wake of Russia’s brutal war. The hearing will feature a discussion with senior U.S. and Moldovan parliamentary leadership to explore how the United States can continue to support Moldova in its democratic reform agenda, continue its anti-corruption efforts, and achieve durable security for itself and the region. The following witnesses are scheduled to testify: Panel 1: Dan Bischof, Acting Deputy Assistant Secretary of State for European Affairs Panel 2: Igor Grosu, President of the Parliament of the Republic of Moldova Doina Gherman, Chair of the Foreign Relations Committee of the Parliament of the Republic of Moldova Ambassador (ret.) William Hill, Global Fellow at the Wilson Center Other witnesses may be added.
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press release
Chairman Wilson and RM Cohen Mark Third Annual Counter-Kleptocracy Month
Friday, June 16, 2023WASHINGTON—Today, Helsinki Commission Chairman Joe Wilson and Ranking Member Steve Cohen, Co-Chairmen of the Counter-Kleptocracy Caucus, marked the third annual Counter-Kleptocracy Month. “Foreign corruption and kleptocracy is the main reason that we face a full-scale Russian invasion of Ukraine today. It is the way that the Islamic Republic of Iran sustains itself. It is the way that the Chinese Communist Party exerts its influence around the world. We need to ensure that western enablers and anonymous financial mechanisms are not providing our adversaries access to our systems and the ability to undermine democracy from within.” As with previous Counter-Kleptocracy Months, Caucus members plan to introduce multiple bipartisan bills to counter foreign corruption and kleptocracy. The work of the Caucus in the last Congress led to the passage of legislation to enable the transfer of recovered oligarch assets to Ukraine as well as an expansion of the anti-money laundering statute of limitations. The Caucus held multiple events and developed and introduced multiple bills to stem the influence of foreign corruption and kleptocracy. The Caucus recognizes the leadership of former Congressman Tom Malinowski, who founded the Caucus. We thank him for his work to close the corrupt loopholes that enable foreign influence to enter our system.
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press release
Helsinki Commissioners Announce Re-introduction of Combatting Global Corruption Act
Tuesday, January 24, 2023On Tuesday, Helsinki Commissioners Rep. Steve Cohen, Rep. Joe Wilson, and Senator Ben Cardin re-introduced the Combatting Global Corruption Act in both the House and Senate, along with Rep. Bill Keating, Rep. Maria Elvira Salazar and Senator Todd Young. This bipartisan, bicameral legislation formally designates combatting global corruption as a key U.S. national security concern. It would require the State Department to identify corruption in countries around the world and publicly rank their levels of corruption in a three-tiered system. For more information click here. The Combatting Global Corruption Act was first introduced in the 117th Congress. Commission Chairman Senator Ben Cardin and Senator Todd Young introduced the Act in the Senate, along with companion legislation in the House of Representatives, led by Rep. Tom Malinowski and Rep. Maria Elvira Salazar. Helsinki Commission Co-Chairman Rep. Steve Cohen, Commissioner Rep. Emmanuel Cleaver, Rep. Dan Crenshaw and Rep. Dean Phillips are original co-sponsors of the legislation.
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press release
Co-Chairman Cohen Calls for the Release of Political Prisoners in Belarus
Tuesday, August 09, 2022Washington – On the second anniversary of the sham presidential election in Belarus, the Helsinki Commission Co-Chairman and OSCE PA Special Representative on Political Prisoners Rep. Steve Cohen (TN-09) issued the following statement: “Two years ago today, Belarus’s autocrat Aleksander Lukashenko put up a show of an election that he had hoped would legitimize his unconstitutional power grab. Despite the many and well-documented cases of election abuse, the people of Belarus did not fall for the tricks of the one-man ruler of Belarus. They voted Lukashenko out, but, predictably, he refused to leave. He ignored the will of the people and chose vicious violence to suppress the peaceful dissent. “In the year following the unprecedented in scale peaceful rallies against the 2020 election results, Lukashenko’s troops arrested, tortured and imprisoned a reported 35,000 Belarusians for the simple act of demanding the government respect their choice and rights. He personally presided over the largest ever domestic repression that saw thousands behind bars and tens of thousands flee the country, including the opposition leader and likely legitimate winner absent election fraud, Sviatlana Tsikhanouskaya, who has been welcomed by neighboring countries. “Since that time, Lukashenko has continued a crackdown on civic participation in Belarus with arrests of civilians protesting the Russian war in Ukraine, changes to Belarus’s non-nuclear status, and the ongoing Lukashenko regime during last year’s March 25th anniversary of Belarus’s ‘Freedom Day,’ adding to the already sizeable number of politically motivated detainments in the country. “There are now close to 1200 individuals languishing in Belarusian prisons for speaking out against authoritarianism, corruption and war. Included among the political prisoners are: Syarhey Tsikhanouski, husband of Sviatlana Tsikhanouskaya and potential candidate against Lukashenko detained in May 2020; Roman Protasevich, journalist and opposition figure accused of inciting mass protests and detained after a false bomb threat forced the landing of Ryanair flight FR4978 destined for Lithuania in Belarus in May 2021; Sofia Sapega, Russian citizen and girlfriend of Protasevich who also was aboard Ryanair flight FR4978; Radio Free Europe/Radio Liberty Belarus Service journalists Ihar Losik, Andrey Kuznechyk and Aleh Kruzdzilovic; and Ales Bialiatski, founder of Viasna Human Rights Centre, a human rights organization based in Minsk that provides financial and legal support to political prisoners. These are but a few names representing political candidates, oppositionists, activists, journalists and other Belarusian and non-Belarusian citizens detained by Lukashenko’s regime. “Lukashenko must immediately order the release of all political prisoners and wrongfully detained individuals and stop the systematic violations of human rights. I call on the U.S. Department of State and our allies abroad to work together during this time of heightened tension with Belarus and Belarus’s benefactor, Russia, to ensure the unjustly imprisoned Belarusians are released at the earliest date possible.”
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publication
The Helsinki Process: An Overview
Friday, June 24, 2022In August 1975, the heads of state or government of 35 countries – the Soviet Union and all of Europe except Albania, plus the United States and Canada – held a historic summit in Helsinki, Finland, where they signed the Final Act of the Conference on Security and Cooperation in Europe. This document is known as the Helsinki Final Act or the Helsinki Accords. The Conference, known as the CSCE, continued with follow-up meetings and is today institutionalized as the Organization for Security and Cooperation in Europe, or OSCE, based in Vienna, Austria. Learn more about the signature of the Helsinki Final Act; the role that the Conference on Security and Cooperation in Europe played during the Cold War; how the Helsinki Process successfully adapted to the post-Cold War environment of the 1990s; and how today's OSCE can and does contribute to regional security, now and in the future.
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hearing
European Energy Security Post-Russia
Tuesday, June 07, 2022Russia is weaponizing energy to prolong its unlawful invasion of Ukraine. Unfortunately, the sanctions that Europe and the United States have put in place have not been enough to curb Russian aggression thus far and the European Union pays Russia almost a billion euros a day for energy resources—mostly gas— that fund the Russian war machine. Germany, in particular, has struggled to move away from its dependence on Russian gas. At the start of the Russian invasion of Ukraine, Germany imported 55 percent of its gas from Russia. As of June 2022, Russian gas imports had decreased to 35 percent, with a goal to decrease to 10 percent by 2024, but progress is slow and buying any energy from Russia means that Germany continues to fund their unlawful invasion. Dr. Benjamin Schmitt, Research Associate at Harvard University and Senior Fellow at the Center for European Policy Analysis, pointed to the resurgence of Ostpolitik, a German diplomatic theory which seeks to build relationships and spread good governance through trade. First introduced in the Cold War era, Ostpolitik was put into action once more in the early 2000s by former Chancellor Gerhard Schroeder, who became infamous for lobbying for Kremlin-backed projects in office and for sitting on the board of the Russian state-owned energy company, Gazprom, after leaving office. However, Russia attempted to leverage such projects, including the Nord Stream 1 project and its ultimately bankrupted predecessor, Nord Stream 2, to increase the vulnerability of Western Europe toward Russia. According to Dr. Constanze Stelzenmüller, Senior Fellow at Brookings Institution, domestic political will exists in Germany to diversify energy sources, even if most are wary of making those changes immediately. German polling shows that one-third of Germans are willing to cut off Russian gas immediately, while two-thirds would prefer a slow gradual decrease in gas. Dr. Stelzenmüller explained that if Germany were to immediately cut off Russian gas supplies, it is likely that a recession would affect not only Germany, but also many surrounding Eastern European countries, most of which have less capacity to manage a recession. She stated, “Much of [Germany’s] manufacturing supply chains go deep into Eastern Europe. So, a recession in Germany would absolutely produce a massive, and perhaps worse, recession in our neighboring economies.” Any actions taken against Russia should ensure that sanctions hit Russia harder than those countries imposing the sanctions. Mr. Yuriy Vitrenko, CEO of Naftogaz Ukraine, and Dr. Schmitt also emphasized the importance of the following recommendations outlined in the REPowerEU plan, the European Commission’s plan to make Europe independent from Russian energy before 2030, and the International Working Group on Russia Sanctions Energy Roadmap: Full European/US embargos on Russian gas. Creation of a special escrow account that will hold net proceeds due to Russia until the Kremlin ceases all hostilities. Diversification of energy dependance away from Russia through energy diplomacy that identifies other potential suppliers, like Qatar. Funding and construction of energy infrastructure around Europe. Termination of Gazprom ownership of all critical energy infrastructure in Europe. Designation of Russia as a state sponsor of terrorism, which would automatically trigger secondary sanctions on any country that imports Russian goods. Sanctioning of all Russian banks. Strengthening of Ukrainian capacity to participate in the energy sector through the creation of modern energy infrastructure during the post-war reconstruction period. Pass the Stop Helping America’s Malign Enemies (SHAME) Act, banning former U.S. government officials from seeking employment by Russian state-owned-enterprises, or Schroederization. Related Information Witness Biographies
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press release
European Energy Security Focus of Upcoming Helsinki Commission Hearing
Thursday, June 02, 2022WASHINGTON—The Commission on Security and Cooperation in Europe, also known as the Helsinki Commission, today announced the following hearing: EUROPEAN ENERGY SECURITY POST-RUSSIA Tuesday, June 7, 2022 2:30 p.m. Watch live: www.youtube.com/HelsinkiCommission The United States and European allies have largely cut Russia out of the global economy following its full-scale invasion of Ukraine. However, given European reliance on Russian natural gas and oil, sweeping energy sanctions have lagged. The European Union spends nearly a billion euros a day on Russian energy, and several EU Member States are struggling to wean themselves off Russian resources in order to implement a full embargo. This hearing will examine plans to create a Europe that is wholly free from Russian oil and gas. Witnesses will discuss the importance of a robust energy embargo to starving the Russian war machine; options to ensure that Ukraine’s energy needs are met; alternative sources of energy for Europe; and the perspective of Germany, which plays an outsize role as the most powerful economy in Europe and a primary consumer of Russian natural resources. The following witnesses are scheduled to participate: Yuriy Vitrenko, CEO, Naftogaz Ukraine Constanze Stelzenmüller, Senior Fellow, Brookings Institution Benjamin Schmitt, Research Associate, Harvard University; Senior Fellow, Democratic Resilience Program at the Center for European Policy Analysis
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press release
Helsinki Commissioners Lead Bipartisan Ask for Biden to Sanction Russians Responsible for Jailing Opposition Leader Vladimir Kara-Murza
Thursday, May 12, 2022WASHINGTON—U.S. Senator Ben Cardin (MD), author of the Global Magnitsky Human Rights Accountability Act and Chair of the Commission on Security and Cooperation in Europe (Helsinki Commission), along with Helsinki Commission Ranking Member Senator Roger Wicker (MS) and Commissioners Senators Jeanne Shaheen (NH) and Sheldon Whitehouse (RI) are urging President Joe Biden to publicly sanction “every Russian official and associate involved with the false arrest, detention, and political persecution of Vladimir Kara-Murza.” The lawmakers made the plea last week in a letter that also was signed by U.S. Representatives Steve Cohen (TN-09), Co-Chair of the Helsinki Commission; Joe Wilson (SC-02), Ranking Member of the Helsinki Commission; Gerald Connolly (VA-11); John Curtis (UT-03); Brian Fitzpatrick (PA-01), Ruben Gallego (AZ-07); Richard Hudson NC-08); Sheila Jackson-Lee (TX-18); Marcy Kaptur (OH-09); Bill Keating (MA-09); Adam Kinzinger (IL-16); Tom Malinowski (NJ-07); Peter Meijer (MI-03); Mike Levin (CA-49); Gwen Moore (WI-044); Burgess Owens (UT-04); Katie Porter (CA-45); Maria Elvira Salazar (FL-27); Abigail Spanberger (VA-07); and Marc Veasey (TX-33). “Kara-Murza is a Russian opposition politician who has long stood up against Russian dictator Vladimir Putin. He embodies what Russia might be one day when it is democratic and free,” the lawmakers wrote. “As Russia loses its brutal war of aggression against Ukraine, we must consider what might come next in that country. Kara-Murza offers a vision of a Russia free from imperialist kleptocracy. He has bravely answered the call of many Ukrainians for Russians to take a stand and oppose this bloody and senseless war. He must be immediately freed and allowed to continue his work.” The full letter is below and can be downloaded at this link. President Joseph R. Biden, Jr. The White House 1600 Pennsylvania Ave., NW Washington, DC 20500 Dear President Biden, We urge you to name and sanction every Russian official and associate involved with the false arrest, detention, and political persecution of Vladimir Kara-Murza. Kara-Murza is a Russian opposition politician who has long stood up against Russian dictator Vladimir Putin. He embodies what Russia might be one day when it is democratic and free. We also urge you to examine whether to sanction those involved in the persecution and imprisonment of other Russian political prisoners. Kara-Murza is a Russian patriot who has fought for decades for democracy in Russia and a prosperous future for his country. For this, the regime in Russia has poisoned him twice. On April 11, while in Russia, Kara-Murza called this regime “a regime of murderers.” He was then arrested, and now faces trumped up charges that may result in years of unjust imprisonment. Kara-Murza was the key Russian activist behind the passage of the Magnitsky Act and its adoption by our allies. The late Senator John McCain called him “one of the most passionate and effective advocates for the passage of the Magnitsky Act.” Kara-Murza himself, like his mentor Boris Nemtsov before him, has called the Magnitsky Act the most “pro-Russian law passed in the United States in the history of our countries.” Nemtsov was murdered in front of the Kremlin. The Magnitsky Act is the appropriate tool to sanction those involved in the persecution of Kara-Murza. We ask that you coordinate with our allies to sanction these individuals at the same time. The European Union, the United Kingdom, Canada, and Australia now all have Magnitsky sanctions laws of their own. As Russia loses its brutal war of aggression against Ukraine, we must consider what might come next in that country. Kara-Murza offers a vision of a Russia free from imperialist kleptocracy. He has bravely answered the call of many Ukrainians for Russians to take a stand and oppose this bloody and senseless war. He must be immediately freed and allowed to continue his work. Sincerely,
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briefing
Russia's Swiss Enablers
Thursday, May 05, 2022Long known as a destination for war criminals and kleptocrats to stash their plunder, Switzerland is a leading enabler of Russian dictator Vladimir Putin and his cronies. After looting Russia, Putin and his oligarchs use Swiss secrecy laws to hide and protect the proceeds of their crimes. Close relations between Swiss and Russian authorities have had a corrupting influence on law enforcement personnel in Switzerland and have led to the resignation of numerous officials, including the head prosecutor of Switzerland. A recent Organized Crime and Corruption Reporting Project investigation found that Credit Suisse catered to dozens of criminals, dictators, intelligence officials, sanctioned parties, and political actors, and identified problematic accounts holding more than $8 billion in assets. According to the Financial Times, Credit Suisse also asked investors to destroy documents linked to yacht loans made to oligarchs and tycoons. This briefing examined the relationship between Switzerland and Russia in light of Putin’s full-scale invasion of Ukraine. Panelists discussed how a compromised Switzerland affects U.S. national security and whether the United States should rethink its strategic bilateral relationship with Switzerland. Related Information Panelist Biographies How the Swiss Law Enforcement Capitulated to the Russians in the Magnitsky Case - Bill Browder
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press release
Helsinki Commission Briefing to Examine Swiss Enabling of Russian Oligarchs
Friday, April 29, 2022WASHINGTON—The Commission on Security and Cooperation in Europe, also known as the Helsinki Commission, today announced the following online briefing: RUSSIA’S SWISS ENABLERS Thursday, May 5, 2022 10:00 a.m. Register: https://ushr.webex.com/ushr/j.php?RGID=r72f85e0c40a09b609b328a9481f54063 Long known as a destination for war criminals and kleptocrats to stash their plunder, Switzerland is a leading enabler of Russian dictator Vladimir Putin and his cronies. After looting Russia, Putin and his oligarchs use Swiss secrecy laws to hide and protect the proceeds of their crimes. Close relations between Swiss and Russian authorities have had a corrupting influence on law enforcement personnel in Switzerland and have led to the resignation of numerous officials, including the head prosecutor of Switzerland. A recent Organized Crime and Corruption Reporting Project investigation found that Credit Suisse catered to dozens of criminals, dictators, intelligence officials, sanctioned parties, and political actors, and identified problematic accounts holding more than $8 billion in assets. According to the Financial Times, Credit Suisse also asked investors to destroy documents linked to yacht loans made to oligarchs and tycoons. This briefing will examine the relationship between Switzerland and Russia in light of Putin’s full-scale invasion of Ukraine. Panelists will discuss how a compromised Switzerland affects U.S. national security and whether the United States should rethink its strategic bilateral relationship with Switzerland. The following panelists are scheduled to participate: Bill Browder, Head, Global Magnitsky Justice Campaign Miranda Patrucic, Deputy Editor in Chief, Regional and Central Asia, Organized Crime and Corruption Reporting Project Mark Pieth, President of the Board, Basel Institute on Governance
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press release
Helsinki Commission Urges U.S. Administration to Consider Sanctioning Remaining Individuals Involved in Persecution of Sergei Magnitsky
Monday, April 18, 2022WASHINGTON—Helsinki Commission Chairman Sen. Ben Cardin (MD), Co-Chairman Rep. Steve Cohen (TN-09), and Ranking Member Rep. Joe Wilson (SC-02) today released a letter sent April 15 to President Biden urging the U.S. administration to consider sanctioning the remaining individuals involved in the persecution of Sergei Magnitsky, the fraud he uncovered, and the coverup of his death in 2009. The letter read in part: “The passage and enforcement of the Magnitsky Act was among the rare times in the last decade that the United States rightly put universal values first in its relationship with Russia. Sergei Magnitsky courageously stood up to the Putin regime’s corruption and represents what Russia might be one day. He has served as an inspiration for Russian activists and civil society who dream of a Russia that respects human rights and complies with its own freely undertaken international commitments… “At this time of great upheaval, it could not be more important that the United States demonstrate its commitment to universal values. Sanctioning these individuals responsible for dismantling the rule of law in Russia and killing one of Russia’s bravest whistleblowers would have this effect.” Included with the letter was a list that includes the names and identifying information of 255 individuals who have not yet been sanctioned for their apparent role in Sergei Magnitsky’s death and the $230 million tax fraud he exposed. The list was compiled by Hermitage Capital Management LLC, the firm where Sergei Magnitsky worked at the time of his arrest and murder. The full letter and list are available online.
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hearing
Countering Oligarchs, Enablers, and Lawfare
Wednesday, April 06, 2022As influential proxies of Russian dictator Vladmir Putin, Russian oligarchs work to weaken Western democracies from within. They pay Western enablers—especially lawyers and lobbyists—millions to use their standing in democratic societies to generate policies favorable to the authoritarian regime in Russia and to silence its critics. On April 6, 2022, the Helsinki Commission heard from five witnesses who testified on the corruption of Russian oligarchs, as well as the various means through which such oligarchs censure journalists from reporting on their nefarious activities. Helsinki Commission Chairman Sen. Ben Cardin (MD) opened the hearing by recognizing oligarchs as appendages of Putin’s government who have engaged in extensive laundering and looting of the Russian state. He stressed the importance of sanctioning oligarchs, who utilize the existing financial and judicial frameworks of Western democracies to protect themselves from legal harm, as well as their accountants and lawyers, who utilize lawfare as means of continuing their kleptocratic ways and silencing those who report on their crimes. “We have to fortify our system against lawfare,” he stated. “And we hope that we can win this fight.” Helsinki Commission Co-Chairman Rep. Steve Cohen (TN-09) asserted that oligarchs, while stealing and oppressing the Russian public, also are funding the Russian invasion of Ukraine. “In exchange for the lavish lifestyles that they live, these oligarchs pledge their loyalty to the mid-level KGB agent… currently overseeing Europe’s biggest land war since 1945,” he remarked. Ranking Member Rep. Joe Wilson (SC-02) described Russia’s invasion of Ukraine as a battle between the virtues of the free world and the vices of a corrupt state. “Putin ordered the invasion of Ukraine because Ukraine is a democracy… because it shows accountability over corruption,” he stated. “This is the most black and white conflict in recent memory.” Daria Kaleniuk, executive director of the Ukrainian Anti-Corruption Action Centre, testified that Putin’s invasion of Ukraine was due to fear of Ukraine’s fight against corruption. On February 22, when Putin declared war on Ukraine, he referred to numerous anti-corruption reforms for which the Ukrainian Anti-Corruption Action Centre had advocated. “It was clear to me in that moment that Ukraine’s successful story in fighting corruption is actually the ultimate threat to Vladmir Putin and to his kleptocratic regime,” she remarked. She argued that integral to Putin’s success throughout the years is his legion of legal and financial professionals. “There are two battlefields,” she stated. “One in Ukraine…. And another one in the West, where America is obligated to fight by targeting Russian oligarchs and their enablers.” Bill Browder, head of the Global Magnitsky Justice Campaign, described his experience following the passing of the Magnitsky Act, which allows the United States to freeze the assets of kleptocrats and human-rights violators. He highlighted the team of Western professionals who helped Putin target him for his work to passing the legislation. To ensure these Western enablers are held accountable for their actions, Browder recommended that Congress speak out and deny government employment to such organizations in the future. “We should make a list of these type of firms that do this enabling, this list should be put together by the U.S. Congress, and there should be a recommendation to the U.S. Government not to do business with these firms going forward,” he said. “They can pick sides. They can decide they want to work for the bad guys. And if they work for the bad guys, then they shouldn’t get any money from the U.S. government. Scott Stedman, founder of Forensic News, described the increased use of lawfare by oligarchs as a weapon to intimidate reporters into silence. He spoke of his experience reporting on Walter Soriano, a businessman with reported ties to multiple Russian oligarchs. Soriano filed a lawsuit against Forensic News and its contributors, attempting to silence Stedman through financial intimidation and lawfare. “Mr. Soriano’s U.S. litigation counsel Andrew Brettler wrote to me threatening yet more legal action if I did not pay a U.K. court for more money than I’ve ever had in any bank account,” he said. “This is what lawfare looks like. It is designed to suppress, stall, scare critical coverage of the Russian elite and their enablers.” Anna Veduta, vice president of the Navalny Anti-Corruption Foundation International, outlined the need to sanction corrupt Russian politicians, oligarchs, enablers, and their family members. The assets these oligarchs and enablers have acquired are held by relatives, she argued, who have yet to be sanctioned. “People responsible for these lies, people who are poisoning Russian people with these lies, still can enjoy spring break in Miami and take their kids to Disneyland,” she said. “So I am going to quote Alexei Navalny once again, ‘Warmongers must be treated as war criminals.’” Shannon Green, executive director of the USAID Anti-Corruption Task Force and senior advisor to the Administrator highlighted the reliance of autocrats like Putin on oligarchs and enablers. She reviewed USAID initiatives to support reform coalitions and confront lawfare domestically, as well as efforts to develop new programs to confront kleptocracy abroad. Addressing her fellow panelists, she stated, “Anna, Bill, Daria, Scott, we draw inspiration and courage from your example. And the U.S. government’s message to you, and to all of your fellow change agents, is: Be not afraid. We stand with you.” Related Information Witness Biographies Statement for the Record: Arabella Pike, Publishing Director, HarperCollins Publishers
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press release
Helsinki Commission Hearing to Examine Ways to Counter Oligarchs, Enablers, and Lawfare
Wednesday, March 30, 2022WASHINGTON—The Commission on Security and Cooperation in Europe, also known as the Helsinki Commission, today announced the following hearing: COUNTERING OLIGARCHS, ENABLERS, AND LAWFARE Wednesday, April 6, 2022 2:30 p.m. Dirksen Senate Office Building Room 562 Watch live: www.youtube.com/HelsinkiCommission As influential proxies of Russian dictator Vladimir Putin, Russian oligarchs work to weaken Western democracies from within. They pay Western enablers—especially lawyers and lobbyists—millions to use their standing in democratic societies to generate policies favorable to the authoritarian regime in Russia and to silence its critics. This hearing will examine ways to counter tactics oligarchs use to launder their money and reputations and stifle dissent. Witnesses will discuss their experiences investigating oligarchs and enablers, as well as the risks of doing so, which include abusive lawsuits filed by Western lawyers on behalf of Putin’s proxies. The following witnesses are scheduled to testify: Shannon Green, Executive Director, USAID’s Anti-Corruption Task Force; Senior Advisor to the Administrator Bill Browder, Head, Global Magnitsky Justice Campaign Daria Kaleniuk, Executive Director, Anti-Corruption Action Centre Scott Stedman, Founder, Forensic News Anna Veduta, Vice President, Anti-Corruption Foundation International
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By Ronald J. McNamara, Policy Advisor
The Helsinki Commission convened a briefing on May 13, 2008, the third anniversary of the massacre at Andijon, to hear from experts on the challenges facing the 28 million people of Uzbekistan, including the widespread use of child labor in that country’s lucrative cotton industry. Panelists addressing political, economic and human rights developments in the Central Asian nation were: Marsha Lisitsyna of Human Rights Watch, film maker and writer Shahida Tulaganova, Juliette Williams of the Environmental Justice Foundation, and Professor Eric McGlinchey of George Mason University.
For nearly two decades, Islam Karimov has ruled over Uzbekistan in a regime long-criticized for its harsh reprisals against dissidents, contempt for democratic principles and widespread corruption. Marsha Lisitsyna provided an overview of the findings of a newly released Human Rights Watch report, “Saving its Secrets” Government Repression in Andijan. She decried the fact that the Government of Uzbekistan has never accepted responsibility for its role in Andijon and has been unwilling to allow an independent investigation into the circumstances surrounding the uprising and massacre. Lisitsyna described the ongoing efforts of the Uzbek government to seek out and persecute anyone it deems to have a connection to or information about those events. While welcoming the regime’s release of a number of human rights defenders, she stressed the fact that a dozen others languish in jail.
The report, based on interviews with witnesses to Andijon and relatives in 2007 and 2008, describes the pressures on those who fled the country as well as the reality for those who have returned to Uzbekistan. Lisitsyna told of retribution aimed at family members, including depriving relatives of social benefits, constant surveillance by the security services as well as the labeling of children of refugees as “children of enemies of the state” by teachers. Returnees are generally isolated, finding it difficult to secure work, and are pressured to entice others to return. In urging the international community not to forget Andijon, Lisitsyna concluded, “If the Government of Uzbekistan is able to demonstrate -- would be able to demonstrate -- considerable progress on human rights for sure, we wouldn't need the sanctions. But unfortunately, to date, this is still not the case.”
Shahida Tulaganova echoed this point, urging the international community, including the European Union and the United States, to resist consigning Andijon to the history books while those associated with the tragedy continue to face repression. She reported that nearly 30 rights activists, independent journalists and opposition figures remain jailed and are subject to various forms of abuse. Tulaganova focused on severe limitations imposed by the government on freedom of expression, including tight control of the Internet and reprisals against independent journalists. In this regard, she recalled the murder of her colleague, Alisher Saipov, a prominent investigative journalist and editor of an Uzbek-language newspaper, Siyosat, gunned down outside of his office in Osh, Kyrgyzstan. Saipov was an outspoken critic of President Karimov, reporting regularly on rights abuses in Uzbekistan.
Tulaganova was critical of the European Union and the United States for not being more forceful in the aftermath of the 2007 flawed presidential elections perpetuating Karimov as president, a position he has held since 1990, making him the longest serving Soviet-era leader still in power. “The fact is that everyone is dealing with an illegitimate president and an illegitimate government,” she said. The deteriorating economy under Karimov, an economist by training and expert on state planning, is exacerbated by widespread corruption, resulting in a flood of labor migrants working outside of the country. Tulaganova voiced particular concern over the hundreds of thousands of school children forced to work under harsh conditions in Uzbekistan’s cotton fields.
Juliette Williams focused on the reliance on forced child labor in the cotton industry, reportedly generating a billion dollars annually. She detailed state control over every aspect of cotton production, from seasonal quotas imposed on farmers to daily quotas demanded of school-age children, some as young as seven years old. “Underpinning the entire industry is the systematical use of forced child labor and slave wages in order to maximize profits to the state, with little or no return for laborers or wider society,” said Williams.
In addition to the human toll, Williams described the environmental degradation stemming from the country’s cotton industry. She pointed to estimates that 60 percent of diverted water never even reaches the cotton fields, but is lost in the deteriorating Soviet-era irrigation network. Perhaps the most dramatic case involves the Aral Sea, once the world's fourth largest inland sea, that has been drained to just 15 percent of its former volume, largely due to mismanagement by the Soviets and their successors. Soil damage is another area of environmental concern. Based in the United Kingdom, Williams explained efforts to organize an international boycott of Uzbek cotton given the reliance on forced child labor. She concluded, “I appeal to the Helsinki Commission and to people here today to engage in a full examination of the human rights and environmental abuses connected to cotton production in Uzbekistan.”
A poignant short documentary film, White Gold, the True Cost of Cotton [http://www.ejfoundation.org/page325.html], was shown during the briefing to provide a human face to child labor in Uzbekistan. Scenes of grounded derelict ships and caravans of camels crossing the now arid seabed that once supported fertile fishing grounds provide stark images of the cost to the environment.
Professor McGlinchey pointed to several changing dynamics that could affect bilateral relations between the United States and Uzbekistan: a lessening of the importance of the Karshi-Khanabad base to operations in Afghanistan, Karimov’s concerns over his legacy, and volatility of international commodity markets. While each could provide an opening, he warned that they could also lead to retrenchment by the regime. The abrupt departure of that U.S. from the K2 base diminished Karimov’s ability to portray himself as a serious partner in the war against terrorism, McGlinchey suggested. Given regime changes in Kyrgyzstan and Turkmenistan, he suggested that Karimov might seek to orchestrate his own succession, opening an opportunity for U.S. engagement with possible successors.
McGlinchey cited escalating food prices as another factor that could generate new pressures and popular demands, potentially further undermining the already fragile foundations of the government. He warned that a vulnerable Karimov regime may resort to even greater repression rather than reform and stressed the importance of U.S. monitoring of human rights as a lifeline to vulnerable activists. With respect to the crucial role of cotton in the Uzbek economy, McGlinchey suggested that it is an unsustainable industry in the region given the depleted water supplies. “Water is not, unfortunately, a renewable resource in Central Asia. The Aral Sea is almost tapped out, and now the glacier stores are going to be tapped out, and in the long run something else besides cotton has to be promoted,” said McGlinchey.