Add to favorite
Subscribe to our Newsletters Subscribe to our Newsletters Get Daily Updates RSS
russian visa

Doing Business in Russia is Like Playing Roulette
February 4, 2011 17:04

Russia looks attractive for investment and business development, but the problem of possible risks still remains.

As says CBS Interactive Business Network, due to poor law enforcement, the proliferation of weapons and corruption, Russia suffers from a wide variety of crime. According to the Time, in country exists a thing, "known as reiderstvo, or "raiding," a term that describes an array of illegal tactics — including identity theft, forgery, bribery and physical intimidation — used by corrupt policemen, tax officials, lawyers and financiers to seize a person's business or property". According to the Time, businessmen not only risk losing their assets, but they can also end up in jail on trumped-up charges brought by corrupt law enforcement officials and prosecutors.

One of the most shocking story is Magnitsky's case. Sergei Magnitsky was a Russian attorney and a partner of British law firm Firestone Duncan, his death in police custody generated international media attention.

Sergei Magnitsky was an attorney and represented American Investment advisory firm Hermitage Capital Management on charges of tax evasion and tax fraud. Hermitage firm had been supplying press with some information on a number of occasions related to corporate and governmental misconduct and corruption, according to Wikipedia. One of the company co-finder, Bill Browder, was expelled from Russia as a threat to national security after allegations that his firms had evaded tax.

In November, 2008, Magnitsky was arrested on charges that he helped Mr. Browder with tax evasion. Magnitsky's colleagues say that during the investigation he accused of corruption a number of employees of Russian law enforcement agencies. From the moment of detention, Magnitsky had been interrogated for three or four times, but no investigation was carried out. Sergei called himself a hostage. In the court he said, that he was a hostage and nobody as interested in his person, as all the attention had been paid to the head of Hermitage.

In July, already imprisoned, Magnitsky was diagnosed with gallstones and appointed a regular treatment. At the end of the month he was sent to another prison Butyrka and deprived of medical treatment. Browder says, "they basically said to him if you sign the following false confessions then we'll give you medical treatment - otherwise we won't". Magnitsky wrote numerous complaints to the court and prison authorities requesting medical treatment but all his requests were ignored and denied. On November 16 Magnitsky died for reasons that prison officials called "rupture to the abdominal membrane". It became known that he had complained of worsening stomach pain for five days prior to his death.

According to RIA Novosti, Magnitsky's death "caused public outrage and sparked discussion of the need to improve prison healthcare and to reduce the number of inmates awaiting trial in detention prisons."

It is sad that this is not the only one case, there are too many of them. Even the foreigners say that there is no rule of law in the country — journalists are getting murdered for turning up dirt on corrupt officials, also it is not unusual for foreign companies to have their assets taken. As Mr. Browder says, "Why shouldn't Western companies invest in Russia? The answer is because it's Russian-roulette capitalism. It's entirely possible at any point to literally have your head blown off doing business in Russia, and my own case is a prime example".

Ksenia Dzha

Author: Ksenia Dzhalagonia

Tags: Russian business Hermitage    

Next Previous

You might also find interesting:

Russian Car Market Putin Never Talked To Trump The Federal Antimonopoly Service of Russia Is Interested In Strengthening Cooperation With the UN Countries Street Or Ulicza? The State of Maria Komissarova Remains the Same

Comment on our site

RSS   twitter      submit

Russian scientists  Exhibitions in Moscow  Russian National Parks  Izhevsk  Krasnoyarsk Territory  Rock-n-roll  Jessica Lange  Gazprom-Media  Russian coal mine  bus tickets Russia FIFA  Anna Starobinets  Moscow  Su-35  Russian opera singers  Street Art  Velikiye Luki  IT  Chudovo  Russian events  Vladivostok Museums  Russian stock market  Andrei Rublev Museum of Old Russian Culture and Art  exploration  Roman Abramovich  Yevgeny Petrov  Spartak Moscow  migration in Russia  Russian elderly  Khabarovsk  Mercedes-Benz Fashion Week Russia  Kaliningrad Region  Russian souvenirs  high technologies  Russian tourism  Monuments to People  St. Petersburg  Urals  Alexander Ovechkin  Tsaritsyno  Russian sportsmen  Saveli Sorin  Russian science  Pevek  Russian Orthodox Church  Russian business  Russian economy  Yasnaya Polyana  Nobel Prize  Russian Cinema  Russian children 

Travel Blogs
Top Traveling Sites