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July 17, 2012
Magnitsky Act as a Test for American Democracy

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Click to download the Magnitsky Bill (HR 4405) in PDF
Click to download Russia's Magnitsky Federation Council report in PDF

Central to fairness, American style, is an opportunity to be heard before judgment is pronounced, innocence until guilty is proven and the proof of guilt by actual evidence and not an alleged propensity to do wrong. This is why the unseemly rush to move the Magnitsky Act through the Congress ultimately is at least as damaging to America as it is to Russia. The proposed Act demands that Russia conducts a "thorough and unbiased investigation of the case" and the Russian prosecutors, albeit slowly, and even the parliament are in the process of doing just that.

The Russian parliamentarian report should be read in its entirety by those wishing to be fair and with an appreciation that it is just preliminary, but among other things, it makes the point that the legal context for the arrest of Sergei Magnitsky may be more complicated than Congress was informed by a British citizen William Browder who, it argues, had a motive to distort the facts to cover up his own activities.

According to this report William Browder implemented a scheme involving the use of Russian corporations he controlled to gain a larger interest in the Russian corporation Gazprom than was allowed by Russian law. The report further alleges that Mr. Browder developed a scheme to evade the payment of profit taxes by claiming a deduction for having a large component of special needs workers in their workforce which resulted in the substantial tax evasion.

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July 15, 2012
The Magnitsky Act

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Senate Foreign Relations Committee Republican Richard Lugar (R-IN) urged his committee to go forward with the Magnitsky bill

Who could argue against the concept that corrupt officials should be punished? Didn't we hear from the Russian leadership, including President Vladimir Putin and Prime Minister Dmitry Medvedev, that corruption is Russia's worst enemy? Why such an outcry, then, in Moscow as well as in the U.S. business community regarding the Sergei Magnitsky Act? It is currently moving through the Capitol Hill bureaucracy and, according to its sponsors, is supposed to help Russia fight its monstrous corruption.

This bill, which is turning into a major irritant in U.S.-Russian relations, threatening to deal a fatal blow to Obama's "reset" policy, references the death in Russia in 2009 of Sergei Magnitsky, who died while in pre-trial detention on a tax fraud charge after being refused medical treatment for his illnesses. The bill calls for U.S. visa denial and assets freeze for all Russian officials involved in mistreating Magnitsky or in some other "gross human rights violations."

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