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gazeta.ru
February 6, 2002
Investment Climate, Seek Kremlin Support
By Andrei Litvinov
After their first, failed attempt to persuade the Prosecutor General to discharge SIBUR top executives from custody Russian business majors decided to appeal for help to the head of the state. Chief of the Russian Union of Industrialists and Entrepreneurs Arkady Volsky met with the president Vladimir Putin to discuss measures necessary “to create a favourable investment climate” in Russia.
On Tuesday, February 5, the president of the Russian Union of Industrialists and Entrepreneurs (RSPP) Arkady Volsky met with Vladimir Putin in the Kremlin. RSPP chief tried to explain to the president how damaging certain actions of the power-wielding authorities against Russian businessmen were for the investment climate in this country.
The head of the state listened carefully to his guest’s reasoning and then invited the Union’s board to the Kremlin to discuss the issue together. It was agreed that the next meeting would take place in March.
SIBUR drama began at the end of the last year when Russia’s gas giant Gazprom asked the Prosecutor General’s Office to investigate suspected misdemeanours within its daughter company SIBUR (Siberian-Ural Petrochemical Company), wherein Gazprom holds 51% stake. Gazprom alleged SIBUR management had illegally sold off assets worth $85 million through its affiliates.
On January 8 the Prosecutor General’s Office detained SIBUR president Yakov Goldvosky, vice-president Yevgeniy Koshits and board chairman of the company Vyacheslav Sheremet, who is at the same time a board member of Gazprom.
Three days later Vyacheslav Sheremet was released under a travel ban, whereas two other suspects remained in custody. On January 18 the prosecutors finally charged both with the abuse of office under Article 201, part 2 of the Russian Criminal Code.
On the same day when the Prosecutor General’s Office announced the charges, Gazprom said it had worked out a compromise with SIBUR management and wanted to withdraw its complaint against the company. However, the Prosecutor General’s Office ignored the appeal.
Alarmed by the impact the criminal investigation in SIBUR may have on the investment climate in general, top executives of leading Russian businesses – board members of the Union of Industrialists and Entrepreneurs asked the chief prosecutor Vladimir Ustinov for the meeting.
RSPP members asked Ustinov to release Goldovsky and Koshits from custody against their personal guarantee that neither of the SIBUR directors would leave the country for the duration of the investigation. Vladimir Ustinov, however, refused on the grounds that the charges the executives face are too grave.
Ever since the day of arrest of SIBUR top managers, representatives of the Russian business elite have been trying hard, yet in vain, to persuade the state authorities that when combating economic crimes prosecutors should act more carefully, avoid arrests, and think of the international reputation of Russian firms.
Moreover, after the RSPP members met with the Prosecutor General, the charges against Goldovskiy were extended. On January 31 the Prosecutor General's Office added a new charge against SIBUR Yakov Goldovsky. Apart from abuse of office, he is now accused of “misappropriation of company’s property entrusted to him” under Article 160, part 3 of the Russian Criminal Code. The article stipulates a punishment of up to 10 years imprisonment.
And still, the chief of the Union Arkady Volsky decided to take the risk and asked the president Putin for a meeting. On Tuesday the meeting took place. Apart from SIBUR, Putin and Volsky had many other things to discuss.
This Friday the RSPP board session will be held. Over 200 delegates from 80 Russian regions are expected to take part in the session. Volsky said the event “is very important for determining the further course of the economic development of the nation”.
The key issue for discussion at the Friday session is, indeed, vital: how to ensure further economic growth in Russia notwithstanding low oil prices.
Vladimir Putin evinced strong interest in the subject and even, as Volsky said after the meeting, “gave a number of recommendations”.
RSPP chief, however, did not specify what exactly the president had recommended, but assured the reporters, that the entrepreneurs would by all means follow the president’s advice.
Russian business elite is eager to demonstrate that it is deeply concerned with the problems Russia faces, and tries hard to act in strict compliance with the law.
Volsky told the president about the draft bill On the Status of Employers’ Unions elaborated by the RSPP. The recently enacted Labour Code envisages the adoption of such law.
The businessmen’ union has many other far-reaching plans, such as, for instance, to hold a Russo-Belarusian economic forum in the near future.
Volsky also passed to the president the request of his RSPP colleagues. When the U.S. president George W.Bush arrives for a visit in May, Russian businessmen would like to meet with him.
By the way, after his meeting with Volsky, Putin had a phone conversation with Bush, and it is quite likely, that the U.S. president has already been informed of Russian businessmen’ request.
Putin and Volsky agreed that in March the president would again meet with the members of the Union’s board in the Kremlin.
The meeting will discuss the implementation of reforms in natural monopolies, state tariff policies, and, according to Volsky, “the creation of a favourable business climate in Russia, the impact of the state leadership on that, and, what’s most important, measures to decrease the negative phenomena, connected with the law enforcers’ activities”.
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