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Extradition The Bout case is many-tentacled, with U.S. ties and bilateral implications
The Mysterious Bout Identity
Wednesday, May 9, 2012
News in Brief
For the U.S., he is the prolific arms smuggler portrayed in the 2005 film, “Lord of War.” For Russia, he is a martyr to U.S. power games.
press photo
Rosneft, ExxonMobil Sign Agreements on Development
Alexander Gasyuk Special to RN
Rosneft and ExxonMobil are moving forward on an agreement made last summer to cooperate in developing the energy resources of the Russian continental shelf. Representatives of the oil majors signed several agreements, including one on the establishment of two joint ventures for work on the Black and Kara seas and on the purchase by Rosneft of shares in three Exxon projects in North America. Read the full article at rbth.ru/15358
Putin Sworn in as President
AFP/eastnews
Moscow fought the legitimacy of the U.S. federal court case against Victor Bout, who was sentenced to 25 years in prison last month, every step of the way. Just as interesting as what came out in the courtroom is what didn’t come out—including his not entirely resolved history with the U.S. government and American businesses. It took less than an hour for Federal Court Judge Shira A. Scheindlin to reach a verdict in the four-year-long high-profile case, “United States vs. Victor Bout.” But Moscow is still stinging from what the Russian Foreign Ministry considers the extra-territorial nature of the case—the prosecution of a Russian citizen after a sting operation in Thailand— and said that it intends to bring 45-year-old Bout back to Russia. Some observers thought a deal might be reached regarding the controversial figure; Bout is known as the merchant of death in the United States and a martyred businessman in his native Russia. Bout pleaded not guilty to charges of conspiring to kill Americans with the weapons he apparently tried to sell in Thailand. He faced life in prison, but received the minimum sentence of 25 years behind bars and a $20 million fine—a deep disappointment to federal prosecutors. U.S. Drug Enforcement Administration special agents nabbed him in a thrilling Hollywood-style sting operation,
The recently concluded trial of Victor Bout, which was covered by the Russian, American and international media, was a perfect storm for the political reset.
which resulted in Bout’s arrest in Thailand in 2008 and his subsequent extradition to the United States in 2010. However what didn’t come up in court is the fact that companies associated with Bout made money from the U.S. government. Some American companies also may have had ties to Bout. According to U.S. Treasury documents, the Pentagon was working with at least two air cargo companies belonging to
Victor Bout in 2004 to 2005, when his planes made dozens of flights back and forth to Baghdad. But the U.S. government said they did not know that Bout owned or was associated with these companies. Former President George W. Bush’s Deputy National Security Adviser Juan Zarate told “60 Minutes” that hiring Bout was a mistake. Experts who have tracked Bout have said that there needs be a public accounting for American companies that col-
luded with Victor Bout in the past. “There was U.S. law prohibiting U.S. companies and U.S. government agencies from doing business with Victor Bout, there were U.N. sanctions in place and yet these companies violated” these rules, Kathi Lyn Austin told CNN. Austin investigated Bout’s activities for the United Nations. Bout was prosecuted for trying to sell a large package of arms to representatives of the Revolutionary Armed Forces of
Colombia who were undercover informants for the DEA. The DEA informants who testified against Bout were cocaine traffickers. Moscow said the verdict was “baseless and biased.” The fact that the judge did not impose a life sentence, something that the U.S. attorney was pushing for, meant that the prosecutors failed to make the strongest case against Bout, observers said. continued on PAGE 3
Politics Will governors’ elections improve official accountability in Russia?
Chosen Few to Face the Ballot Dmitry Medvedev’s new law brings back gubernatorial elections this year, yet the Kremlin races to replace as many as possible. Andrew roth
AFP/eastnews
russia profile
Following major protests calling for fair elections after December’s parliamentary vote, Dmitry Medvedev--in one of the last major political reforms of his Presidency--submitted a bill to the State Duma restoring direct elections of governors in Russia’s 83 regions. The elections had been previously abolished in 2004 under President Vladimir Putin, who was inaugurated again as president on May 7 for his third term. But before the new law comes into play, the Kremlin is targeting those governors seen as unpopular or unsuccessful and replacing them with other United Russia allies while it still can. Like Kremlinology, the shuffling of governors remains an entertaining but opaque process. It isn’t an exact science: Mikhail Vinogradov and Evgeny Minchenko, two Moscow-based political analysts, produce a yearly list of “survival ratings” for governors that delves into the deciding fac-
President Dmitry Medvedev addresses governors at the Kremlin Palace in Moscow earlier this year.
tors of whether a governor stays or goes. These include popularity, Duma electoral results, internal conflicts between bureaucrats and the governor’s effectiveness as a leader. United Russia’s mediocre victory in the December Duma elections prompted expectations that the Kremlin would take revenge on governors in those regions where the party had performed especially poorly.
Pavel Salin, an analyst for the Center for Political Assessment, noted that some governors are used as scapegoats for government failures and are removed or forced to resign, while keeping national politicians, like Mr Medvedev, above the fray. “Though it is on the decline, in general the idea of the national leader, this modern, monarchic model, persists in society. The leader is associated with
power, stability, sovereignty and other positive, abstract ideas, while the governors answer for the so-called day-to-day government,” Salin said. One of the more recent casualties is Pavel Ipatov, former governor of the Saratov region, who became the fifth governor to leave his post since the ruling party United Russia posted mediocre results in the December Duma elections. Despite the fact that Ipatov won 65 percent of the vote, the move came as no surprise. Ipatov had famously burdened Saratov with more than $1 billion dollars of new debt. However, conflicting information emerged about his departure. While the local press reported that the governor had been fired, citing a Kremlin source telling RIA Novosti that the governor’s poor ratings were behind the decision, Ipatov and the Kremlin press service maintained that the governor had offered to resign and that his departure was planned. “I don’t want to comment on what happened,” Ipatov told Interfax. “These were planned events, and I didn’t think it necessary to speak about this earlier, as I was bound to my word.”
On May 7, Vladimir Putin once again took the oath of office as Russia’s president, officially beginning his third term in office. Putin was reelected in the first round of the presidential election, which took place March 4. Despite accusations of fraud in the elections, observers generally agreed that a majority of Russians did indeed vote for Putin. As a result of constitutional amendments made in 2008, Putin will serve six years as president instead of the previous four, and he will be eligible to run again in 2018. Read more about politics at rbth.ru/politics
Moscow Changes Plans for the Metro The Moscow Metro plans a huge expansion, opening nearly 95 miles of new lines, which will include access to the proposed new government buildings in the southwest of the city. The expansion is slated to double the size of the Metro. An annual budget of $3.4 billion has been approved for construction. “More stations will be within walking distance and the load on some metro lines will be relieved,” said Moscow Mayor Sergei Sobyanin. Read the full article at rbth.ru/
Apart from the debt scandal, Ipatov was also locked in a vicious struggle with the deputy head of the presidential administration Vyacheslav Volodin, who is also from Saratov. The Moscow State University professor Rostislav Turovsky, a regional politics expert, told Kommersant that the firing was a major victory for Volodin, because “Ipatov was kept on as a counterweight to Volodin, so that he could not strengthen his position in the region of which he is a key citizen.” Salin notes that the Kremlin’s sudden rush to replace governors implies that it would hope to find ways to micromanage local politics, even once the new law has been passed. Indeed, under the new bill, the president will still be able to sack governors for corruption, failure to perform their duties or for a conflict of interests. But at the same time, voters will also be able to seek the resignation of an unpopular governor through a referendum organised by a local parliament. Read more at rbth.ru/15399
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American-style dining comes to Moscow rbth.ru/15314 legion-media
Russians to launch roundthe-world trip rbth.ru/15419