An Excerpt From:
K&L Gates Global Government Solutions ® 2011: Mid-Year Outlook
July 2011
Anti-corruption
International Support and Follow up
President Medvedev has
long campaigned to
fight corruption in Russia...
Higher Standards for Defense Against
Criminal Liability
The new law makes it more difficult for
defendants to be exonerated from charges
of criminal liability for bribery, requiring
proof that either (i) the bribe was paid as
a result of extortion, or (ii) the defendant
voluntarily notified law enforcement
authorities of the commission of the
crime. In addition, to avoid criminal
liability, the defendants will have to have
demonstrated that they actively assisted
the relevant authorities in discovering
and/or investigating the crime.
New Crime—Bribery Intermediation
The new law establishes an offense for
acting as an intermediary in the payment
or receipt of a bribe, assistance in
doing so, or promising or offering to do
so. Sanctions for this violation are also
rather strict, with potential fines of up to
90 times the amount of the bribe with a
prohibition on holding certain positions
or engaging in certain activities for up to
three years, and imprisonment for up to
12 years.
Legal Entities:
Administrative Regulation
to the administrative law applicable to
those entities. The amended rules, as
is the case with the criminal sanctions,
include as an offense the bribery of
foreign public officials.
Increased Fines
Sanctions under the Code of
Administrative Offenses have been
strengthened, and fines for bribery can
be as high as 100 times the value of
the bribe. In addition, the statute of
limitations for violation of anti-corruption
laws has been extended from one year
to six years after the date of the offense.
International Assistance
In response to growing international
efforts against corruption, the Code of
Administrative Offenses has been revised
to include various provisions relating to
cooperation among law enforcement
authorities of other nations. The Code
now includes specific rules governing
the process for Russian and foreign law
enforcement authorities to file requests
for legal assistance, the legal force of
evidence so obtained, the summoning of
witnesses and other related matters.
These recent changes were well received
by the international community. The
OECD called them a “significant step”
in the fight against corruption that should
aid Russia in becoming a party to the
OECD Convention. In addition to these
amendments, a number of other measures
are being proposed in Russia to increase
transparency and fight corruption.
It should be noted, however, that
even prior to the new law, Russia had
long had strong legal authority to
battle corruption, yet in recent years
the problem has become still more
entrenched. While there is no doubt that
the new measures could prove useful
should the authorities decide to clamp
down on corruption, only time will tell
whether the new law is a true signal of
President Medvedev’s determination to
clean up the way business is done in
Russia, or merely window dressing to
appease the international community.
William M. Reichert (Moscow)
william.reichert@klgates.com
Svetlana A. Vorobyeva (Moscow)
svetlana.vorobyeva@klgates.com
Elena A. Evoyan (Moscow)
elena.evoyan@klgates.com
Given that under Russian law,
companies and other legal entities are
not subject to criminal prosecution, the
new law introduces significant changes
K&L Gates Global Government Solutions ® 2011 Mid-Year Outlook
61
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