Title

Title

Witness Profile: Dr. Valery Perry
Thursday, June 30, 2016

Dr. Valery Perry was one of four expert witnesses at the Helsinki Commission’s May 25, 2016 hearing, “Combatting Corruption in Bosnia and Herzegovina.”Dr. Valery Perry

Dr. Perry’s interest in Bosnia began in 1997, when she helped supervise the country’s first municipal elections. Seeing it as a “fascinating example of a peace process,” she completed her Ph.D. research in Bosnia while simultaneously working for several organizations on aspects of peace implementation, democratization, and good governance.

During the early post-war years, Perry believes that many Bosnians felt that the situation in the country was improving. However, today there seems to be a sense that the country’s development has not only stagnated, but may even be regressing.

During the negotiations of the Dayton Accords, Bosnian citizens were not consulted about the ramifications of the agreement or the new constitution, Perry notes, although they have had to live with the consequences.

“It’s troubling for me to think that the United States and some of its allies put in place a peace agreement and a framework constitution that may have served its purpose at one point, but is now actually limiting the ability for citizens to create the vision that they want and to hold their leaders accountable,” she says.

“One thing you hear all the time when you talk to people who are from Sarajevo is that the city was very different before the war,” Perry continues. “There are so many people in Bosnia who just want the same things anyone anywhere wants – a decent job, good education for their children, safe streets…. and yet they are so poorly served by this post-war system.”

As a result, she observes, the lack of social trust in Bosnia is pervasive. “There’s almost a built-in, learned helplessness, especially among young people who have grown up in a fairly dysfunctional system…assuming that if they don’t join a political party they’ll never get a job, and if they’re not prepared to either use connections or possibly even pay a bribe they won’t pass their exams at the university.”

“It became very clear to me that corruption is at the heart of what happens when you don’t have good governance, when you don’t have an accountable electoral system, when you don’t have independent media, and when you don’t have a functioning judiciary,” she says.

For example, in Bosnia it is rare to hear of corruption cases that are investigated, prosecuted, and have successfully progressed through the entire appeals process.

“The judicial system is really not independent,” she says. “We see a lot of cases where someone is found guilty of corruption or abuse of office, but then there are simply repeated appeals until they get the judge and the decision that they want…everything is politicized and divided according to ethnic and national affiliation rather than merit and civic responsibility.”

As a first step to addressing the systematic corruption, Perry recommends strengthening laws on conflict of interest, political party financing and state enterprise regulation and transparency.

“It would be useful to look at a number of pieces of legislation that are either weak or have recently been weakened, and try to strengthen those…any reforms that lead to legislation need to be accompanied by very clear articulation of which agencies are competent and responsible for seeing them through,” she suggests. “There [also] needs to be vigorous oversight by investigative journalists and civil society actors and others to move forward.”

According to Perry, the United States and the international community can support anti-corruption efforts, but the challenge is complicated. “These issues should become a part of election campaigns and debates,” she says. “I think that this is where the US and other international actors involved in Bosnia can get involved as well: by supporting activists and citizens who are in the public debate and together asking, why any officials or candidates would be against more transparency in terms of appointment to the enterprises, or support opaque financing from the public purse?”

In addition to her anti-corruption work, Dr. Perry is also working on a documentary film – “Looking for Dayton” – which follows the experience of three men who fought in Sarajevo during the siege and who visit the US and Dayton Ohio 20 years after the end of the war to find out more about the place that shaped the peace and the Dayton Agreement.

She says, “We have a lot of work to do but we’re hoping to use the medium of film to tell a story that is interesting in terms of broader issues related to war and its aftermath and its effect on regular people.” 

 

Relevant countries: 
  • Related content
  • Related content
Filter Topics Open Close
  • European Energy Security Focus of Upcoming Helsinki Commission Hearing

    WASHINGTON—The Commission on Security and Cooperation in Europe, also known as the Helsinki Commission, today announced the following hearing: EUROPEAN ENERGY SECURITY POST-RUSSIA Tuesday, June 7, 2022 2:30 p.m. Watch live: www.youtube.com/HelsinkiCommission The United States and European allies have largely cut Russia out of the global economy following its full-scale invasion of Ukraine. However, given European reliance on Russian natural gas and oil, sweeping energy sanctions have lagged. The European Union spends nearly a billion euros a day on Russian energy, and several EU Member States are struggling to wean themselves off Russian resources in order to implement a full embargo. This hearing will examine plans to create a Europe that is wholly free from Russian oil and gas. Witnesses will discuss the importance of a robust energy embargo to starving the Russian war machine; options to ensure that Ukraine’s energy needs are met; alternative sources of energy for Europe; and the perspective of Germany, which plays an outsize role as the most powerful economy in Europe and a primary consumer of Russian natural resources. The following witnesses are scheduled to participate: Yuriy Vitrenko, CEO, Naftogaz Ukraine Constanze Stelzenmüller, Senior Fellow, Brookings Institution Benjamin Schmitt, Research Associate, Harvard University; Senior Fellow, Democratic Resilience Program at the Center for European Policy Analysis

  • Helsinki Commission Digital Digest May 2022

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

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

  • Putin's Bribetakers and Warmongers

    The Helsinki Commission was briefed on 6,000 bribetakers and warmongers identified by Alexei Navalny's Anti-Corruption Foundation.

  • Helsinki Commissioners Lead Bipartisan Ask for Biden to Sanction Russians Responsible for Jailing Opposition Leader Vladimir Kara-Murza

    WASHINGTON—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,

  • Swiss Release Some Frozen Russian Assets

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

  • Russia's Swiss Enablers

    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 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

  • Swiss Attacked for Going Easy on Seizing Russian Billions

    The $7.6 billion in Russian assets seized to date by Swiss authorities is “insulting,” outspoken Kremlin critic Bill Browder said at briefing on Russian money in Switzerland.  It’s “a lot of money in absolute terms but Switzerland is one of the main destinations for dirty Russian money,” said Browder. Given the Swiss Bankers Association has said there’s as much as 150 to 200 billion Swiss francs ($202 billion) in Russian assets in the country’s banks “I would almost say it’s slightly insulting,” he said.  Browder, who has also highlighted what he perceives to be Swiss prosecutors’ soft approach to investigating Russian financial crime, called on the U.S. to review its cooperation framework with its Swiss counterparts, during the hearing organized by the Commission on Security and Cooperation in Europe on Thursday. “Based on my experience, it would lead me to believe the Swiss are knowingly turning their head the other way when it comes to some of the other oligarchs,” said Browder. The Swiss government said a month ago it had blocked 7.5 billion Swiss francs ($8 billion) in Russian assets in the country to date, as it issues sanctions that mirror those imposed by the European Union on those seen as close to Vladimir Putin.  That figure represented a jump of 30% from their previous tally two weeks earlier and Swiss officials say the number will continue to rise as more assets hidden behind shell companies or in the names of associated are painstakingly uncovered.  Switzerland surprised the world in early March by departing from its tradition of neutrality and saying it would fully embrace the European Union measures against Russia.  But critics including Browder contend that the country needs to go much further. Read more: Swiss Hunt for Russian Wealth Criticized Despite $6 Billion Haul Erwin Bolliger, the chief of the Swiss Secretariat for Economic Affairs which is enforcing the sanctions, has tried to explain the gap by pointing out that are plenty of legitimately-held Russian investments in Switzerland. “There is merit in Bill’s suggestion to review the law enforcement relations between the U.S. and Switzerland,” said Mark Pieth, a law professor at the University of Basel and corruption expert, said at the hearing. Up until now, Switzerland’s approach to clamping down on dirty Russian money in the country has shown a “lack of courage,” Pieth said.

  • Helsinki Commission Briefing to Examine Swiss Enabling of Russian Oligarchs

    WASHINGTON—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  

  • Helsinki Commission Digital Digest April 2022

  • Biden administration urged to ban UK lawyers who ‘enabled’ oligarchs

    A member of Congress has urged the Biden administration to place travel bans on senior British lawyers that acted for wealthy Russian clients against investigative journalists. Steve Cohen, a Democratic representative from Tennessee, has written to Antony Blinken, the US secretary of state, urging him to sanction the lawyers for having “enabled malign activities of Russian oligarchs”. His letter comes as the Biden administration looks to increase its support for Ukraine in its war against Russia and tighten sanctions against those who have supported the Russian regime. Cohen wrote: “Oligarchs who hire lawyers to engage in abusive cases against journalists to silence them cannot exert malign influence in our system . . . the United States must establish deterrents for foreign enablers serving individuals who are undermining democracy.” The state department did not respond to a request for comment. Cohen singled out several lawyers he believed should be subject to bans on visas for travel to the US: Nigel Tait of Carter-Ruck; John Kelly of Harbottle & Lewis; barrister Hugh Tomlinson; Geraldine Proudler of CMS; Keith Schilling of Schillings; and Shlomo Rechtschaffen of SR law. Each of the lawyers is well known in London legal circles, with firms like Carter-Ruck and Schillings having established strong reputations in defamation law and reputation management. Tait, Kelly, Tomlinson and Proudler all worked on recent cases against the former Financial Times journalist Catherine Belton or her publisher HarperCollins, or both. Belton and HarperCollins were sued last year by several Russian oligarchs including Roman Abramovich over her book Putin’s People, which details the rise to power of Russia’s president Vladimir Putin. The lawsuits were later settled or withdrawn. Cohen cited Schillings’ work for Malaysian businessman and fugitive Jho Low. British ministers have expressed concern over the way in which UK courts are used by wealthy foreigners to launch libel cases. Dominic Raab, the justice secretary, last month set out proposals to limit any so-called Strategic Lawsuits Against Public Participation. Also in March Bob Seely, the MP for the Isle of Wight, used parliamentary privilege to claim “amoral” City lawyers were teaming up with “Putin’s henchmen” to offer “legalised intimidation”. A spokesperson for Tomlinson said: “Regulatory rules for lawyers are very strict and work to ensure equal entitlement to independent legal advice. Mr Tomlinson acted properly and in accordance with those rules throughout and has never acted as Mr Cohen suggests.” Tait’s firm Carter-Ruck said: “The claims made against Carter-Ruck are misconceived and are rejected entirely. In addition to other matters, we are not working for any Russian individuals, companies or entities seeking to challenge, overturn, frustrate or minimise sanctions.” It added: “We are not acting for, and will not be acting for, any individual, company or entity associated with the Putin regime in any matter or context, whether sanctions-related or otherwise, and will continue to conduct all ‘know your client’ checks in accordance with all applicable laws and regulations, as we have always done.” Cohen cited Rechtschaffen for his representation of Israeli-British businessman Walter Soriano, who he alleged was an “enabler” of certain oligarchs including Abramovich. Rechtschaffen said: “Walter Soriano is not an enabler of any oligarch . . . The English courts have said that the claim against Mr Stedman is not abusive.” Harbottle & Lewis said the firm had “acted at all time in accordance with its professional and legal obligations, and takes these matters very seriously”. Schillings said the firm did not act for any sanctioned entities and could not comment on client matters. It added that Cohen’s allegations were “wholly misplaced” and “misinformed”. It said the firm had upheld “the highest traditions of the legal profession”. Proudler’s firm CMS said it rejected Cohen’s allegations, adding that Proudler and the firm had been “compliant with all professional regulations”. “As we have said since the invasion of Ukraine, CMS is no longer accepting new instructions from Russian based entities or from any individuals with connections to the Russian government.”

  • Helsinki Commission Urges U.S. Administration to Consider Sanctioning Remaining Individuals Involved in Persecution of Sergei Magnitsky

    WASHINGTON—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. 

  • Russia Critics Press Congress for Curbing Moscow's Role in International Groups

    Critics of Moscow pressed lawmakers to sever remaining international connections with Moscow and punish what they called enablers of Russian President Vladimir Putin’s government—including Russian tycoons. “We recognize that the oligarchs are the appendages of Mr. Putin’s mafia state,” said Sen. Ben Cardin (D., Md.), the co-chairman of the Commission on Security and Cooperation in Europe, known as the Helsinki Commission, which held a hearing Wednesday on Russia's financial ties abroad. “I can’t wait to see police tape around mansions in Miami," said Sen. Sheldon Whitehouse (D., R.I.). Witnesses before the commission, a U.S. agency that has frequently scrutinized Moscow, sought to portray Russian billionaires and their network of lawyers and agents in the West as little different from Russian government employees and its lawyers abroad. Bill Browder, a prominent critic of the Kremlin’s human-rights record, called on the U.S. to withdraw from the mutual legal-assistance treaty that allows U.S. and Russian law enforcement to cooperate on investigations and secure witness testimony. Western countries should ban lawyers paid by the Russian government in one country from traveling to their countries, he said. The Kremlin used the Interpol international law-enforcement network in an effort to arrest Mr. Browder after his lawyer died in a Russian prison in 2009. Mr. Browder, who founded investment fund Hermitage Capital, said the U.S. and partner countries should seek to remove Moscow from Interpol or “basically threaten the funding of Interpol if Russia is not expelled.” Mr. Browder was the largest private investor in Russia until his expulsion from that country in 2005. Moscow should also lose its membership and face blacklisting by the Financial Action Task Force, a Paris-based intergovernmental body that audits the ability of nations to detect and disrupt illicit finance, said Daria Kaleniuk, co-founder of the Anti-Corruption Action Center in Ukraine. Mr. Browder and Ms. Kaleniuk were among five witnesses at the hearing.

  • Countering Oligarchs, Enablers, and Lawfare

    As 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

  • Helsinki Commission Digital Digest March 2022

  • Helsinki Commission Hearing to Examine Ways to Counter Oligarchs, Enablers, and Lawfare

    WASHINGTON—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

  • With oligarchs in the crosshairs, alleged Western 'enablers' attract fresh scrutiny

    As governments scramble to seize high-profile assets owned by Russian oligarchs, a quiet effort is gaining momentum in the West to target their alleged “enablers” – the lawyers, lobbyists and money-handlers who critics say help them hide, invest and protect their vast wealth in U.S. and European institutions. “The yachts and jets and villas get the most attention, but a lot of the oligarchs’ money is in private equity and hedge funds – places we can’t see,” said Maira Martini, a researcher with the corruption watchdog Transparency International. “That’s the money that really matters to them.” For decades, wealthy business tycoons with close ties to Russian President Vladimir Putin have enlisted the services of reputable bankers and lawyers in the West to navigate loopholes that obscure their identity. While it's not necessarily illegal to use obscure entities and agents to protect finances, critics say the laws need to be strengthened to create more transparency. rganized Crime and Corruption Reporting Project, a global investigative reporting platform that focuses on corruption, organized crimes and illicit financing, claims to have uncovered over 150 assets worth $17.5 billion held by 11 Russian elites and their alleged enablers, while a Forbes report identified more than 82 properties across the world -- a collective of $4.3 billion -- held by 16 sanctioned Russian oligarchs. Assets that have surfaced are likely only a fraction of these oligarchs' actual wealth. The true extent is difficult to track because they often use a convoluted network of shell companies, obscure entities and stand-ins to keep their finances hidden, experts said. But now, with war raging in Ukraine, lawmakers and corruption watchdogs are calling on governments to close those loopholes and crack down on the middlemen who know how to exploit them. “Putin’s oligarchs cannot operate without their Western enablers, who give them access to our financial and political systems,” said Rep. Steve Cohen, D-Tenn. “These unscrupulous lawyers, accountants, trust and company service providers and others need to do basic due diligence on their clients to ensure that they are not accepting blood money. This isn’t rocket science – it is common sense policy to protect democracy.” In Washington, Cohen and others have introduced the ENABLERS Act, which would require real estate brokers, hedge fund managers and other entities to “ask basic due diligence questions whenever somebody comes to them with a suitcase full of cash,” said Rep. Tom Malinowski, D-N.J., the lead sponsor of the bill. The International Consortium of Investigative Journalists, a global network of journalists and newsrooms that have tracked the wealthy's tax havens and financial secrecy, has identified at least a dozen networks of facilitators, offshore agents and banks across the world that have allegedly helped Russia's elites move and hide their money based on its analyses of public records and leaked financial documents the group has obtained over the past decade. This includes a range of actors, from global offshore law firms that create shell companies and other obscure entities to help wealthy Russians keep their finances clouded, to one-man shops in offshore tax havens that help set up "nominee" shareholders and paid stand-ins to conceal the real owners of entities. ICIJ also points to the roles of major law firms in helping shape the modern tax avoidance system as well as the roles of big financial institutions and banks in helping wealthy Russians move their money. Last year, The Washington Post, as part of its collaboration with ICIJ's Pandora Papers project, reported on how South Dakota, with its limited oversight, vague regulations and trust secrecy, has become a tax haven for secretive foreign money. Malinowski stressed that the United States "has become one of the easiest places in the world for corrupt kleptocrats around the world to hide money." “What we've basically allowed is a system where people can steal their money in countries without the rule of law and then protect their money in countries like ours where they can count on property rights and courts and privacy rules to safeguard his loot for life," Malinowski said. "We should not be complicit in the theft that supports dictatorships like Putin." Experts warned that sanctions and asset seizures, while effective in the short term, may be toothless over time if secrecy loopholes remain in place. On Wednesday, Transparency International published an open letter calling on Western leaders to take steps to stem rules that foster opacity. “To disguise their wealth and keep them out of the reach of law enforcement authorities, kleptocrats will turn to lawyers, real estate agents, banks, crypto-service providers and banks in your countries,” the letter reads. “You must redouble your supervision efforts over the gatekeepers of the financial sector.”

  • Chairman Cardin Emphasizes the Importance of the Global Magnitsky Act

    Madam President, reserving the right to object to the request from the Senator from Idaho, it is my understanding that the Senator’s modification would not include provisions that were included in the Housepassed legislation that modifies the global Magnitsky sanction regime. I just would like to speak for a moment, if I might. There is no question that we stand with the people of Ukraine against the unprovoked attack by Mr. Putin. We are inspired every day by the courage of the Ukrainian people and by their inspirational leader, President Zelenskyy. The United States has shown leadership, and I congratulate the Biden administration. We have led the free world in providing defensive lethal weapons to Ukraine to defend itself. We have provided humanitarian assistance, joining the global community, including dealing with 3 million Ukrainians that are now refugees in other countries and 10 million that have been displaced as a result of Mr. Putin’s unprovoked attack. And we have led on sanctions. We have led in getting the global unity to impose sanctions against not just the Russian sectors, but also against individuals. And when Mr. Zelenskyy spoke before the Members of Congress, he specifically mentioned the importance of these sanctions; and he asked us to expand those covered by the sanctions to include the enablers, those that are enabling Mr. Putin—the oligarchs—to be able to fund his aggression against Ukraine. So what did the House send over to us? In their bill, they sent over a global Magnitsky modification. It is identical to legislation that was filed by Senator PORTMAN and myself that included the revocation of PNTR for Russia, along with the global Magnitsky. First and foremost, it removes the sunset that is in the legislation that would sunset this year. Mr. Zelenskyy asked for us to be resolved in being willing to stand up to Mr. Putin, that it would take some time. A clear message is that we remove the sunset on the global Magnitsky statute. And we know how difficult it is to get legislation passed in this body. It also expands the global Magnitsky to include the enablers—exactly what Mr. Zelenskyy asked us to do—those that enabled—the oligarchs that allowed him to be able to finance this. The language that is included in here is very similar to the language that was included in President Trump’s Executive order. This is critical legislation. Now, let me just tell you how appropriate it is that it is included in a PNTR bill—because the first Magnitsky sanction bill—and Senator WYDEN was very important in getting this done—was included in the original PNTR bill for Russia, and we were able to get it done at that time. We then made it a global Magnitsky, and my partner on that was the late Senator McCain. It has always been bipartisan. My partner now is Senator WICKER. The two of us have joined forces to make sure we get it done now. It is critically important in order to impose banking restrictions on those that are targeted under the global Magnitsky, as well as visa restrictions on being able to travel. How important is it? Ask Mr. Usmanov, who is one of the principal oligarchs to Mr. Putin, who solves Mr. Putin’s business problems. Guess how he solves those problems? Well, his yacht has now been confiscated in Germany. That is how important these sanctions are and how we have to move them forward. So, if I understand my colleague’s request, it would deny the opportunity for us to act on the global Magnitsky, which Mr. Zelenskyy has specifically asked us to do. We would lose that opportunity. We would be sending this bill back to the House that is not in session, which means there will be a further delay in repealing PNTR for Russia, which is something we need to do now, today. We can get it to the President for signature today under the majority leader’s request. And as the majority leader has indicated, I support the energy ban—I support the Russian energy ban. President Biden has already taken steps to do that. And I agree with my colleague from Idaho. I would like to incorporate that in statute, but there is no urgency to do that as there is on repealing PNTR and the global Magnitsky. That is the urgency. That is what we need to get done today. That is what we can get to the President this afternoon under the majority leader’s request, and that will be denied if my friend from Idaho’s request were granted. So, for all those reasons, I object.

  • Containing Russia

    Russian dictator Vladimir Putin’s war on the Ukrainian people is an urgent threat to European security and global peace. Should his destructive gambit succeed in Ukraine, Russia will have dramatically expanded its de-facto border with NATO—including through a soft annexation of Belarus—as well as its ability to destabilize the democracies of Central and Western Europe.  Russian military success would threaten to draw a new iron curtain across Europe, dividing those protected by NATO’s security guarantees from those left exposed to Russian predation. This division could lead to significant remilitarization, a reappearance of Cold War tensions, and a reversion to historic cycles of European conflict. Beyond Europe, revisionist powers would be emboldened, and the United States and its Allies would be less able to deter them.  On March 23, 2022, the Helsinki Commission heard testimony from a panel of witnesses who recommended ways to deter Russian dictator Vladimir Putin’s from further escalating his unprovoked attack on Ukraine. Helsinki Commission Chairman Sen. Ben Cardin (MD) opened the hearing by denouncing Mr. Putin as a war criminal, calling for accountability for the heinous war crimes currently being committed in Ukraine. He lauded the heroism of the Ukrainian people and recognized Ukraine’s President Volodymyr Zelensky as a champion of democracy. “They’re an inspiration to all of us,” he stated. “President Zelensky [is] there fighting for the sovereignty of Ukraine, but he’s also fighting for the sovereignty of the free world.” Ranking Member Sen. Roger Wicker (MS) welcomed the assistance the United States already has provided, while simultaneously calling for greater action. “I call on the President today, the Secretary of State, and the White House to unleash the full package of sanctions that are available to them,” he said, “and to enhance the weaponry that we have already made available to our friends in Ukraine.” Co-Chairman Rep. Steve Cohen (TN-09) and Sen. Richard Blumenthal (CT) pledged  to support Ukraine and called for the facilitation of additional weaponry to the Ukrainian army and implementation of stronger economic sanctions of Russian oligarchs and their enablers. Before the witnesses testified, Ukrainian Ambassador to the United States Oksana Markarova addressed the commission, denouncing the Russian invasion of Ukraine as a violation of international law and a greater threat to the democratic world. “So what is happening in Ukraine is not only about Ukraine,” she asserted. “The very foundation of the world rule-based order, as we all knew and respected it after World War II, has been under attack today.” General Phillip Breedlove, former commander of U.S. European Command and NATO’s former Supreme Allied Commander Europe, testified that the Western response to Russia’s invasion has been almost entirely limited to economic measures, with no formidable action taken thus far in the diplomatic, informational, or military sphere. He supported the implementation of humanitarian corridors and humanitarian airlifts, both protected by NATO-enforced humanitarian no-fly zones. “We have allowed Mr. Putin to accomplish both the goals of deterring us and gaining initiative,” he stated. “I’m advocating that we and our Western partners reevaluate our strategic approach: Mr. Putin should be deterred, vice we in the West[HS1] . This requires moving away from a passive deterrent posture to affecting a more active deterrence.” Dr. Michael Kimmage, fellow at the German Marshall Fund and Department Chair at Catholic University of America, warned of historical precedents regarding containment of the Soviet Union, and how it applies contemporarily to Russia’s war in Ukraine. “Policy success should be measured not against maximalist dreams in which Putin, and with him Russian military power, exit the scene. Russian power is here to stay. Policy success should be measured against the much more achievable goal of containing this very power,” he said. Dr. Miriam Lanskoy, senior director for Russia and Eurasia at the National Endowment of Democracy, warned of the dangers of potentially isolating the Russian public from the global internet and media. She advocated for engaging with Russian citizens, while simultaneously opposing the Russian government. “Distinguish between Putin’s regime and its various enablers and the Russian people, preserve support and amplify the voices of Russian democrats now fleeing the country and those who remain inside,” she recommended. Related Information Witness Biographies

  • Doing More

    Russian dictator Vladimir Putin’s criminal war has enraged citizens of goodwill and galvanized support for Ukraine across the world. The United States has been a key supporter of Ukraine, providing weaponry, humanitarian relief, and other forms of urgent assistance, in addition to leveling crippling sanctions on Russia. However, Russian forces continue to bombard Ukrainian cities, targeting civilians and critical infrastructure. Russia’s brutal war is causing an unprecedented humanitarian catastrophe in Ukraine, and observers worry that Putin may next use chemical or other weapons of mass destruction. On March 16, President Zelenskyy appealed to the U.S. Congress to render additional aid to Ukraine, including the possibility of enforcing a no-fly zone. The briefing, held on March 18, 2022, explored the various military strategies available to the West in its defense of Ukraine. Panelists examined Ukraine’s militaristic capabilities, as well as the various risks associated with implementing military recommendations, such as humanitarian air corridors or NATO-enforced no-fly zones. Panelists at the briefing included General Wesley Clark, founder of Renew America Together and senior Fellow at the UCLA Burkle Center for International Relations; Dr. Stacie Pettyyjohn, senior fellow and director of the Defense Program at the Center for a New American Security; and Dr. Matthew Kroenig, director of the Scowcroft Strategy Initiative at the Atlantic Council. Helsinki Commission Senior Policy Advisor Michael Hikari Cecire moderated the briefing. Helsinki Commission Co-Chairman Rep. Steve Cohen (TN-09) opened the briefing by reaffirming his support for the facilitation of transferring Polish fighter jets to Ukraine, as well as his confidence in the strength and capability of the Ukrainian military. “The Ukrainian army has proven to be [pretty good] at knowing what they can do with their equipment,” he said. “It’s a conflict between rule of law and rule of gun.” Mr. Cecire explained that despite Russia’s obvious military advantages, the Ukrainian military has thus far successfully stymied Russian aggression. Unfortunately, as Russian forces grow frustrated with their lack of military progress, they have become increasingly indiscriminate in their attacks, targeting innocent Ukrainian civilians, and bombarding critical infrastructure, such as shelters and hospitals. General Clark advocated for a humanitarian airlift, implemented with U.N. approval, and a no-fly zone, as requested by Ukraine. He asserted that Russian dictator Vladimir Putin will eventually strike NATO territory with missiles, and that Putin’s threats of nuclear escalation should not deter Western states from defending a rules-based international order. “There’s a fallacy here, that somehow NATO inaction will translate into Putin’s refusal to escalate. This is a logical fallacy,” he said. “Putin will escalate as necessary to obtain his objectives. So I’m trying to find a third course of action between Ukrainian defense and Russian escalation, which is to provide the firebreak of a humanitarian rescue mission assigned into various locations that puts a firebreak into the fighting that could lead to a ceasefire, that could lead eventually to, coupled with the sanctions, a Russian pullback and withdrawal.” Dr. Pettyjohn discussed the risks of implementing humanitarian no-fly zones or humanitarian corridors, deeming them potentially escalatory and ineffective. A better alternative, she argued, would be for the international community to arm the Ukrainian people with mobile short-, medium-, and long-range air defenses, and to continue to provide precision standoff weapons. “The international community should help Ukraine, but not by following the post-Cold War playbook of implementing a no-fly zone,” she stated. “Against Russia, a no-fly zone would be even more difficult to implement and may not succeed… and it raises the potential for limited, or even more extensive than that, nuclear use, which is not something that I ever want to see in my lifetime.” Dr. Kroenig addressed the risk of nuclear escalation, arguing that although Russia’s threat of utilizing nuclear weapons in Ukraine should not be dismissed, the United States and NATO can enhance military support to Ukraine without escalating the risk on nuclear war. He advocated for the creation of humanitarian corridors, while cautioning against the establishment of a no-fly zone. “When it comes to no-fly zones or humanitarian corridors, I think I might split the difference between Dr. Pettyjohn and General Clark. I do think a no-fly zone would run a real risk of escalation,” he said. “But I think something like a humanitarian corridor could work, supported by ground convoys.” Related Information Panelist Biographies

Pages