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US Senate Passes Magnitsky Act & Russian Trade Bill

RIA Novosti

21:43 06/12/2012

WASHINGTON, December 6 (RIA Novosti) The US Senate on Thursday passed the Magnitsky Act, which targets Russian officials deemed by Washington to have violated human rights, along with a landmark trade bill with Russia.

The Senate voted 92 to 4 to approve the legislation, which would simultaneously repeal the Cold War-era Jackson-Vanick restrictions on trade with Russia, establish normalized bilateral trade relations with Moscow, and introduce visa bans and asset freezes on Russian officials considered by the White House to be guilty of human rights violations.

The decision to link the rights legislation to the trade bill has angered Russia, which has promised retaliatory measures aimed at the United States.

There was little suspense to the fate of the bill in the Senate. It was widely expected to pass, and it will now go to US President Barack Obama to be signed into law.

In the lead-up to Thursday’s vote, however, there was a question about whether provisions targeting Russian officials would be extended to every country in the world. The US House of Representatives’ version of the bill focused exclusively on Russia, while the Senate version called for purportedly corrupt officials in other countries to be punished as well.

The Senate ultimately agreed to the language in the House bill and focus just on Russia.

“This bill may only apply to Russia, but it sets a standard that should be applied globally,” Sen. Benjamin Cardin, the author of the Magnitsky Act, said in a statement ahead of the vote. “I encourage other nations to follow our lead.”

The bill specifically targets Russian officials considered by the White House to be involved in the death of Russian whistleblower lawyer Sergei Magnitsky in 2009, but it extends to other purported violators of human rights in Russia as well.

The earlier Senate bill also tasked the US State Department and the US Treasury Department with identifying the Russian officials targeted for sanctions. Like the House bill passed last month, however, the Senate bill approved Thursday places this responsibility in the hands of the US President.

The establishment of permanent normal trade relations (PNTR) with Russia comes on the heels of Moscow’s accession to the World Trade Organization (WTO) in August. In line with its WTO obligations, Washington must enact PNTR with Russia in order to afford US producers the maximum economic benefit of operating on the Russian market.

A broad consensus has formed on the PNTR issue among US officials, businesses and industry lobbies, who say the US economy stands to benefit greatly from opening up the Russian market to American entrepreneurs.

The White House, however, had sought to keep the issues of PNTR and the repeal of Jackson-Vanik separate from the Magnitsky Act—a position widely seen as an attempt to prevent the Magnitsky legislation from negatively impacting US-Russian cooperation on issues such as counterterrorism and arms reduction.

The Russian Foreign Ministry issued a statement prior to Thursday’s vote, reiterating its view of the bill as “an absolutely unfriendly, provocative, unilateral move that undoubtedly is aimed at attacking the rights of a certain category of Russian citizens.”

“There will be an appropriate response,” the ministry said.



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