Recently the president of Russian Skolkovo Foundation Viktor Vekselberg sued Oleg Deripaska, the owner of the Rusal (Russian Aluminium) company for 47 billion dollars. The lawsuit was submitted to the London Court of International Arbitration. Vekselberg, who previously was a chairman of the board at Deripaska’s company, accuses the latter of the violation of the corporate agreement.
This case was probably inspired by another one – “the case of the century,” this is what British journalists call the argument between two other oligarchs, Boris Berezovsky and Roman Abramovich. The first one sued the other one because at the beginning of 2000s he was forced to sell his shares in ORT channel, Sibneft, and Rusal for reduced prices.
The Day addressed the international section editor of The Economist Edward LUCAS and asked him to comment on the lawsuits of Russian tycoons, and also on the special features of British legal system that post-Soviet countries lack.
“Russian oligarchs prefer London courts because they know they are fair and the judges are unbiased, considering the excellent legal practice,” Lucas says. “Decisions made here differ from the decisions made by Russian courts, which are very hard to appeal against, even if you are innocent.
“British legal system is a few hundred years old. It is extremely hard to create another one like this, even if your government respects the rule of law. But unfortunately, Russia does not respect it and uses the judicial branch as means of political influence. This concerns the courts that deliberately deliver preconceived judgments. This is clearly visible in Khodorkovsky’s case, or in the investigation of Magnitsky’s case, for example.”
If oligarchs are billionaires, why do they not use their authority and money to improve Russian judiciary system?
“I think they sometimes do. For example, Khodorkovsky financed civic society, gave out scholarships and grants. He tried to do at least something. But now he is a puppet doll in a rough disorganized game the Kremlin plays. But in my opinion, an evident tendency towards positive changes is present in Russia.”
And what do the British think of the lawsuits between Russian billionaires? Because the Vekselberg-Deripaska case is neither the first, nor the third, nor even the last one that is going to be examined in London.
“On the one hand, the British consider this to be a profitable business. Such situation means that British courts are still considered to be one of the best courts in the world, since the most powerful people choose them to settle their cases. This also means that oligarchs pay the law firms, which in their turn pay their workers and also organize various charitable events. This is a sort of ‘export.’ So, we attract rich people, and I think it is a good thing. Of course, there is the other side of the medal: some people think we are losing our reputation in this way. There is a very important principle: Ex turpi causa non oritur actio – an action does not arise from a dishonorable cause. Though British judges often ignore this principle.
“Sometimes oligarchs dispute about what can be considered a crime. But the British legal system earned its reputation, because our judges can say, no, we cannot take this case.”
Do you think the West can have an impact on Russian political and legal systems?
“I think that the West actually has some, but there is no system. However, we can see Russian gangsters being put into jail, and even wealthy and powerful people losing their seats in parliament. The principle of the rule of law works well in the Western countries. But for the British, for example, Russia seems to be chaotic.
“A new concept has emerged in the British legal system after the latest judicial process: ‘cover-up.’ A few rich Russians and Ukrainians wish to use British courts for libel cases. This causes an immediate effect. Not even every British newspaper, but every single media organization in the world trembles at the very thought that one of its authors or publishers can be summoned to a London court because of libel prosecution. This fills Russian and Ukrainian oligarchs with great delight.”
