Europe
2 years ago

The cat and mouse game of Russia sanctions

The Russian flag flies over the Embassy of Russia in Washington, US, August 6, 2018. REUTERS
The Russian flag flies over the Embassy of Russia in Washington, US, August 6, 2018. REUTERS

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The push and pull over enacting and expanding the Magnitsky Act, which played out in US courtrooms and backrooms, carries a warning for those enforcing sanctions against Russia today. Moscow is likely using some of the same tactics it deployed against Browder in response to the invasion of Ukraine.

Sergei Magnitsky was a lawyer who discovered a $230 million fraud. His employer, Browder’s Hermitage Capital, was framed for it. Magnitsky was sent to jail, where he was beaten and denied medical treatment. The 37-year-old died in 2009 after spending a year in prison without charge. Guilt-ridden Browder made it his mission to make life difficult for people he held responsible for Magnitsky’s death.

Thanks to Russia’s laissez-faire approach to data privacy, Browder and his team were able to obtain information on how billions of dollars were laundered through European banks. They collaborated with journalists and, with the help of the leaked Panama Papers, followed the trail back to Putin himself. Browder’s team found transactions that linked $800,000 of the $230 million to Sergei Roldugin. The cellist and friend of Putin didn’t answer the allegations, but said the cash disclosed in the Panama Papers came from donations.

Russia deployed lawyers, consultants and police to stop Browder. He evaded summons and arrest warrants and fought back in the media. At one point then-President Donald Trump was even considering handing the businessman over to Russia for questioning.

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