Cohen: Why the Magnitsky Act Makes Sense
Writing in the National Interest, Dr. Ariel Cohen argues that the enactment of the Magnitsky Act, which would deny visa priveleges and other targeted sanctions toward Russian officials accused of violating human rights, is long overdue.
A weak rule of law and pervasive corruption—including the failing court and law-enforcement systems—are at the heart of these persistent rights violations, which reflect both the Soviet legacy and the older Russian tradition of the patrimonial state. Bad cops and courts are challenging everyday Russians, as well as Western and domestic investors. Top Russian leaders, including presidents Vladimir Putin and Dmitri Medvedev, have complained bitterly about the state of affairs but done little to improve things.
Now, Congress has a chance to press for trade reforms that are in the best interests of the United States while supporting the cause of human rights for all. The bipartisan bill was drafted in response to the death of Sergei Magnitsky. He died in detention following his whistle-blowing on massive fraud allegedly committed by Russian officials. It provides a practical and balanced way forward—something that can serve as a prerequisite for the lifting of the obsolete Jackson-Vanik Amendment, a 1974 restriction on trade with authoritarian regimes. The new Magnitsky Act would accommodate Russian membership in the World Trade Organization (WTO) while signaling long-term American commitment to the rule of law beyond Jackson-Vanik.
The legislation could also be applied to the case of Mikhail Khodorkovsky. Khodorkovsky, chairman and CEO of the Yukos oil company, was once Russia’s wealthiest man. In 2003, he was arrested on charges of tax fraud, and in 2005 he was sentenced to nine years in prison. At a second show trial in December 2010, he was sentenced to fourteen years in prison. In 2006, Yukos was auctioned off at a rock-bottom price to Rosneft, Russia’s state-run oil company. Yukos shareholders, including many American small investors and mutual funds, were effectively expropriated by the Russian government without compensation.
In reality, Khodorkovsky ran afoul of the Putin administration due to his calls to curb corruption and because some of Putin’s associates coveted parts of Yukos. The show trial was used to intimidate and control other oligarchs that might have disobeyed the Kremlin. Amnesty International recognized Khodorkovsky as a political prisoner. Today, Russia is the only G-8 country with political prisoners.