17 06 / 16

Article of Paradigma’s Managing partner Kliment Igorevich Rusakomskiy in Lenta.Ru

«Nowadays it is a bad manner to be in offshore area»

Currency investments are main source of economic development. But it is necessary for effective money to ensure such special conditions as silence, calmness and protection. That is why the protection of investments and business has become the most important topic at St. Petersburg International Economic Forum (SPIEF). There were two events organized in the frameworks of Forum and dedicated to this problem. The reporter of online portal «» observed how Russia protects its own and foreign money. Paradigma’s managing partner Kliment Igorevich Rusakomskiy gave some comments to these events.

Run with the hare and hunt with the hounds

«When England and Russia played football, I was asked who should be the winner and I answered, that our team should be. So our players have won (in the fact, they drew a tie – a comment by «»)», – the partner of White&Case company David Goldberg began the discussion in pure Russian.

The world has changes significantly, he declared. That things, which were regular five years ago, currently are inadequate. «Nowadays it is a bad manner to be offshore, to make investments to other countries through offshore», – denoted Goldberg and began to memorize how countries had protected their investments many years ago. Firstly, army and fighting ships had been sent for the protection of own interests. After there were diplomatic actions. At nowadays there are direct agreements on protection of investments and the institute of investment tribunal.

The head of Russian Ministry of Justice Alexander Konovalov, who led the debate, said that the investment tribunal is a subjected to merciless criticism in the modern world. “Right-wing" say that it is too expensive. "Left-wing" claim against of arbiters’ bias, lack of transparency and politicization.

The financial editor of Evening Standard, Anthony Hilton made some comments about the left-wing ideas. Left-wing’s members believe that international trade is evil. The population of developed countries ruled offside, because the world production is transferred to more "cheap" regions. "In Seattle, there were even riots and protests against the international trade", – Hilton recalled. All of this adversely affects the tribunal as the idea of protection of property.

The director of The Institute of State and Law of the Russian Academy of Sciences Andrey Lisitsyn-Svetlanov told about the differences between Russian and Western investors. Russian investors do not see any risks when investing in Europe. Western investors are afraid of indirect expropriation. "However the sanctions (imposed on Russia – a comment by "") – are the indirect expropriation and restriction of rights", – he said.

Kliment Igorevich Rusakomskiy, the managing partner of law firm “Paradigma” appreciated the discussion as interesting and multivarious. "International tribunal is needed to protect the investors’ interests from tyranny of the strong state power. Initially, investment tribunals were established as baton for developing economies with the purpose to protect investors from developed countries. And currently this weapon has turned against them. In this case we can see how the European Union opposes the decisions created by tribunal. Now it is possible to see that international tribunal in this form has had its day and it should be seriously reformed. However, it is necessary to guarantee the protection, fairness and speed of proceedings", – the expert said.

Prosecutors are nearby

Business, as well as investments, is a national security issue. Participants of the second discussion dedicated to the protection of entrepreneurs agreed to this. The main person on this event was the Prosecutor General of the Russian Federation Yuri Chaika. For the first time ever the Prosecutor General visited the SPIEF. Of course, his performance has attracted much attention. All the questions of the participants of the panel discussion were addressed specifically to the Chaika.

And he talked about how the prosecutors save the business in Russia.

First, they check the legality of all business area regulations.

Second, they restrain regulatory authorities – almost half of their inspections are rejected by "the men in blue".

Third, the prosecution keeps special control of the facts of the illegal prosecution of entrepreneurs.

Finally, Chaika touched a theme that is always rising at the SPIEF – foreign investment. "We do not divide the business in domestic and foreign. It is important to ensure strict observance of rights of foreign investors", – he stressed.

Managing partner of law firm "Paradigma" Kliment Rusakomskiy in an interview with "" noted that the entire discussion revolved around the Chaika’s opinion and his view of the protection of business problem. "I was amazed by the unity of views of the Prosecutor General and Business Ombudsman Boris Titov. This gives the hope that their collaboration will lead to the desired results. It can be seen that the prosecution is taking serious steps to protect businesses from the arbitrariness of inspection bodies. Although the situation is in the embryonic stage now, all participants in the discussion noted that in the last year there have been tremendous strides in this direction. And Russian courts make fair decisions, which is surprisingly confirmed by foreign colleagues, who spoke at the session. As members of not only Russian but also international trials, of course, we see that, for example, the London arbitration courts or the Dutch courts are rank above domestic courts. I mean the level of quality of legal services during the proceedings rather than bias. However, we catch up with Europe by leaps and bounds", – he said.

"There is an opportunity. Of course, if we move forward and do not break anything, then we will have a chance to become the most competitive jurisdiction. We made a jerk, the forming is completed and we can apply in our own law, our judicial system, all innovative solutions that are used in the law by advanced countries", – added Rusakomsky.

Indeed, Titov highly appreciated the prosecutor's merits in the sphere of business protection. He mentioned the creation of a special register of entrepreneurs checks – It had accumulated 800 thousand of them per year. But the prosecution authorities are aware of them. However, the Ombudsman complained that not all inspections fall into this register.

Another reason for pride is a number of white-collar prisoners in pretrial detention centers. There are five thousand of them in Russia, which is less than in Germany.

"A lawyer is nearby, speak freely", – with such words discussion moderator Dimitry Afanasiev (real attorney) turned the floor over to the co-chairman of "Business Russia" Andrei Nazarov. The prosecutor was around, too, – so there were almost the full team (judge was missing). Nazarov didn’t told something new. Only a few hundred entrepreneurs took advantage of a capital amnesty in Russia. "Several hundred declarants – this, of course, is much smaller than we expected", – he complained.

It was expected that tens of thousands of businessmen would benefit of the capital amnesty. Nazarov explained such low activities by insufficiently hard (in the opinion of the business community, of course) guarantees in the event of declaration of assets abroad.

So prosecutors still have things to do.