Page 27 - bnemagazine bne_December 2021_20211203.pdf

bne December 2021 Companies & Markets I 27
sponsored by the US-Ukraine Business Council and the Kyiv School of Economics.
The Pandora Papers revealed that in 2012 President Zelenskiy’s production company, Kvartal 95, was incorporated in Cyprus. At the time, Zelenskiy had a good reason to incorporate in Cyprus. 2012 was during the presidency of Viktor Yanukovych, a period that a friend of mine, a long-time resident of Ukraine, described as “beyond corruption.” President Zelenskiy likely believed that if his company was successful, it would become the target of
a corporate raid by one of Yanukovych’s associates, collectively known as “the Family.” 2012 was the time of the pre-packaged corporate raid, where for say $100,000, one could obtain all the ingredients of a successful corporate raid, including bribed judges, notice for a general meeting, police raids and everything else necessary to steal a company from its owners. A $15,000 pre-packaged Cyprus corporation, including the corporate seal, and an office address, bank accounts, by-laws, etc., at least offered some protection.
“A new Dreyfus affair:” Ilya Sachkov asks President Putin to be transferred from jail to house arrest
East West Digital News in Moscow
Ilya Sachkov, the top cybersecurity businessman who was arrested under charges of “state treason” in late September, has claimed he is innocent and asked President Putin to be transferred from jail to house arrest during the investigation, reports East-West Digital News (EWDN).
Excerpts of his letter to Putin were shared with Forbes Russia by Sachkov’s lawyer Sergey Afanasyev.
“I think this is a new Dreyfus affair,” wrote Sachkov, referring to a political scandal that divided France in the late 19th-early 20th centuries. Falsely accused of spying for Germany, Captain Dreyfus was recognized innocent only after
a 12-year legal saga.
“I am neither a traitor nor a spy,” continued Sachkov: “I am a Russian engineer. Through my work, I repeatedly proved my loyalty to the Motherland. I very much ask my president, Vladimir Vladimirovich Putin, to allow me to be under house arrest with maximum restrictions during the period of the investigation.”
The article also interviewed Alexander Bornyakov, Deputy Minister for Digital Transformation. As described in a
very snappy video, Ukraine is in the process of digitising interactions between citizens and their government, much like Estonia and Kenya have done. This is an excellent development but, as the article points out, some prefer the status quo – “the country is pushing sunlight and legitimacy to a group of executives who often prefer darkness and quasi- outlaw status.” The ability of an individual to start a business online, to take one example of an interaction being digitised, effectively limits the opportunity for graft.
Ukraine has made great progress, especially in reducing the level of petty graft that directly affects its citizens, but until property rights are strengthened, caveat emptor.
Robert Homans is an international financial sector consultant based in Washington DC and tweets at @rhomansjr.
Jailed internet entrepreneur Ilya Sachkov says he is the new Dreyfus, a French officer wrongly accused of spying for Germany in the late 19th-early 20th centuries
Sachkov’s mother also wrote a letter to Putin last month. She asked the Russian President to “honestly investigate the case” and release her son.
While stating that the President is the “guarantor of citizens’ rights and freedoms,” the Russian constitution does not grant him any specific power to intervene in legal matters.
Sachkov, who is currently in the Lefortovo pre-trial detention center, feels well, Afanasyev said. He started receiving letters and answers them all, the lawyer added – implying some of the strict restrictions placed on Sachkov’s activities following his arrest have been lifted.
A Moscow court extended Sachkov’s jail term for another three months, until Feb. 28, 2022, while the investigation continues. The businessman could face up to 20 years in prison under the present charges.
This article first appeared in East-West Digital News (EWDN), a bne IntelliNews partner publication.
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