Refusing Complicity
Oh dear, Moscow is 'irked'. Taking those loong strides, carrying that big stick, raising those petulantly polemical issues, and currying favour where possible hasn't resulted, it would seem, in raising the broad spectrum of support in particular places Vladimir Putin and his administration had counted on. Although why they would is anyone's guess.Yes most certainly international investment in Russia has always been fraught with insecurity. Where even at the best of times, when the economic situation has been stable and the country has been anxious to secure foreign investment, the unwary or perhaps insufficiently-wary have experienced the let-down of being abused of their trust.
So if the Russian state sees not too much awry in deciding to nationalize an industry formerly owned and operated by foreign private interests, why would they then hesitate to take onto themselves a successful, highly-profitable and vital industry from private Russian ownership to public? On trumped-up charges of, say, tax evasion?
So here's the case of Mikhail Khodorkovsky, former buddy of Boris Yeltsin, permitted to purchase a former state-owned and -operated energy industry during a time of economic collapse. As Russian oligarchs are prone to do, when handed an opportunity, Mr. Khodorkovsky made the most of his, and changed the oil company into a resounding economic success.
In the process making himself a billionaire. And in the course of succeeding events during which Vladimir Putin ascended to the Kremlin, finding fault with his presidency. Making no secret of his plan to use his fortune to help bring about a change in administration, challenging President Putin and his cadres. Could be he didn't care for the KGB antecedents and the political creep-back.
Surprise! for his troubles being arrested for fraud, then languishing in prison, for the state is the ultimate power and the justice system can be suborned. But even brutal authoritarian rule likes to be liked and accepted and have its decisions seconded and assisted. Which explains the high dudgeon expressed by Yuri Chaika, Russia's prosecutor-general.
"Switzerland's refusal to help Russia does not have legal weight and is spurred by political motivations", said he. And would he not know all about political motivations, after all? The Swiss court took the step of ordering Swiss bank officials to desist in assisting the Russian government to investigate the previous owner of Yukos.
The Swiss panel of five judges ruled it believed that Mr. Khodorkovsky's prosecution and conviction were - there's that phrase again - politically motivated. Moreover that his trial bore evidence of procedural irregularities and deficiencies; legally corrupt, in other words. They minced no words in indicating their understanding that the man's human rights were infringed upon in refusing him the legal right to defense.
Thus clearing the way to unblock $248-million in bank accounts of the former Yukos oil company chairman, and his partner. Yukos, under private ownership of Mr. Khodorkovsky and its executives was considered to be administratively transparent, an extremely well operated company. His fatal error was to fund opposition parties. Giving his president the opportunity to accuse him and bring the former state energy company back into the fold.
Which led to his being accused of fraud and tax evasion and money-laundering. Which led further to the bankruptcy of the company, so it could be auctioned off and purchased by state-controlled Rosneft. Back in state hands, under a close apparatchik of President Putin. And leading, finally, to the firm grasp by the State of its energy industry, and the country's economic advancement.
Nice trick if you can do it. And they did.
But when a Swiss court points a finger of accusation, of dirty dealing at a country, that's a decided set-back. There will be long-term repercussions. As though the current administration isn't under enough of a black cloud for harassment and persecuting its one-time allies, bullying them with the withholding of its energy reserves.
This is the first time the top Swiss court has overturned an international request for assistance on political grounds. The court has declared in essence that Mr. Khodorkovsky was a victim of political wrong-doing, that legality is missing from the Russian system of justice.
That's bound to sting. About time. Try again. Do it right.
Labels: Justice, Political Realities
posted by Pieface @ Wednesday, August 29, 2007
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