16 June 2004 00:00
Russia has put itself in the dock: BOB DOLE:
ByLine: By BOB DOLE
This week's combined courtroom hearing for Russian businessmen Mikhail
Khodorkovsky and Platon Lebedev in Moscow has an eerie feel of deja` vu for
those who recall the "bad old days" of pre-1991 Soviet Russia. Back
then, political dissidents, social non-conformists and just about anyone else
could be hauled before the government's kangaroo court on trumped-up
charges and be summarily sentenced to prison, exile - or worse. Times have
changed, or have they? Since Vladimir Putin's rise to power,
heavy-handed police and judicial treatment of Mr Khodorkovsky and Mr Lebedev
and others like them have raised international concerns. The heady days of
glasnost and privatisation that supposedly heralded a "new Russia"
have given way to an environment that reeks of political repression, social
regression and re-nationalisation of key industries.
While the jury is still out, there is no question that Russia itself is now
on trial as observers await the outcome of this case. Coincidentally, Moscow
is right now desperately seeking full membership of the World Trade
Organisation and "fuller" membership of the Group of Eight advanced
countries, in bids that would measurably enhance Russia's stature and
credibility as a global leader. But does it qualify? Doubts and opposition
are growing with each additional stride backwards.
Just last month, the European Court of Human Rights ruled that the
Kremlin's prosecution of Vladimir Gusinsky, one of the first oligarchs
to run foul of Mr Putin's prosecutors, violated his human rights.
Similar prosecutions are proceeding against other perceived opponents of Mr
Putin such as Boris Berezovsky and Akhmed Zakaev. In each case, the timing
has been linked to the Kremlin's political agenda, the targets have been
people posing a political threat to Mr Putin, while Kremlin favourites
engaged in similar business activities have remained untouched. Meanwhile,
key independent journalists in Russia continue to be silenced and there are
even some rumblings about regulating internet access. Similar to attacks on a
free press, show trials and asset seizures breed doubts about Moscow's
respect for the rule of law and its commitment to democracy, human rights and
free enterprise. It is one thing to demand accountability for deals and sharp
practices during Russia's big privatisation period. But when the Kremlin
returns to the business of selecting favourites to reward and enemies to
punish in connection with ownership of the country's largest businesses,
the investment climate suffers. Foreign investors begin to worry about
political risk and about putting more money into a Russia that cannot be
relied on to respect property rights.
So far, Russia has been somewhat shielded from the economic impact of the
politicisation of its justice system by the huge inherent value of its
natural resources. But the precipitous fall in Yukos share prices this year
is a fresh indicator that markets pay attention to shifting political
circumstances. Ultimately, overseas investors will not turn a blind eye to
developments that make it hazardous to invest in a country. Each time the
Kremlin punishes a particular businessman on the basis of political
considerations, it increases the risk of driving foreign investors away.
Ultimately, the result could be an exodus of foreign capital that would
severely affect the country's plans for development and modernisation.
Already, Mr Putin's continuing apparent popularity at home stands in
stark contrast with his developing reputation abroad. Although it may be
popular to make scapegoats of Russian businessmen who benefited most from
privatisation, their prosecution recalls the chilling Russian adage:
"Find me the man and I'll find you the crime". In the
short-term, the prosecutions fulfil the political goal of deflecting public
rage about Russia's economic and social conditions from the government
itself. But longer term, they undermine the foundations of rule of law, due
process and political freedom essential to sustaining Russia's new
economy.
The return to authoritarian policies and unconstitutional processes has
already begun to undermine the historic leap that Russia took when the Soviet
system was pushed aside 13 years ago. Russia is at a crucial crossroads and
must make a historic decision about its future path. The world is watching -
and hoping - that the Russian government's own trial at this moment will
result in a positive verdict for the country's prospects.
The writer is a former US Senate majority leader and Republican nominee for
president; his law firm Alston & Bird is assisting Group Menatep respond
to the Russian government's prosecution of Mikhail Khodorkovsky and
Platon Lebedev, two of that company's major shareholders
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