NGO LEGISLATION: VARYING EXPECTATIONS ABOUT

C O N F I D E N T I A L SECTION 01 OF 03 MOSCOW 002928

SIPDIS

SIPDIS

E.O. 12958: DECL: 03/22/2016
TAGS: PGOV PHUM PREL PINR RS
SUBJECT: NGO LEGISLATION: VARYING EXPECTATIONS ABOUT
IMPLEMENTATION

REF: A. MOSCOW 2132

B. MOSCOW 2446

Classified By: Ambassador William J. Burns. Reasons: 1.4 (B/D).


1. (C) SUMMARY: The GOR continues to be opaque about
implementation of its controversial new NGO legislation,
which is to go into effect next month. It has revealed
almost nothing publicly about the legislation's implementing
regulations, although one NGO contact told us he had seen
draft reporting forms, which he described as ambiguous and
intrusive. FM Lavrov told the Ambassador that the GOR is
aware that implementation will bear heavily on Russia's image
abroad, and the independent NGO community continues to
believe the GOR will not launch a harsh crackdown on NGOs, at
least until after the G-8 Summit. At the same time, the GOR
sent what civil society activists see as a worrisome new
signal when the Procuracy froze Open Russia Foundation's
assets in connection with an investigation of charges of
involvement in money laundering for Mikhail Khodorkovskiy.
Although many observers do not expect the GOR to use the
legislation for a full frontal attack on NGOs, they fear the
Kremlin will use it to frighten most NGOs away from an
oppositionist stance and exploit the ambiguities and new
requirements in the legislation to eliminate those that seek
to exercise political independence. END SUMMARY
.
LITTLE NEWS ABOUT IMPLEMENTING REGULATIONS
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2. (SBU) Since its signature by President Putin on January
10, the controversial new legislation has awaited preparation
of implementing regulations, a process being led by the
Justice Ministry (ref a). According to the Interfax news
agency, Putin said at a meeting with that ministry that
enforcement of the legislation was among its "vital issues."
He reportedly instructed that preparation of implementing
regulations be guided by "constitutional provisions on the
rights and freedom of an individual and citizen." We have
heard nothing further from the GOR about the process of
preparing those regulations.


3. (C) Yuriy Dzhibladze of the Center for the Development of
Democracy and Human Rights told us March 15 that while he had
no word on specific provisions in the regulations, he had
recently seen draft versions of the reporting forms that NGOs
would have to complete in order to register. The Justice
Ministry had sent those draft forms to other ministries a few
weeks earlier for comment, Dzhibladze reported, and the
Finance Ministry had confidentially sent them to some NGOs
for assessment. Dzhibladze said the draft forms he saw were
ambiguous and intrusive, and would place a heavy burden on
NGOs. The forms, at least in their current draft, would
require information on every event an NGO organized,
including a participant list and details about financing and
help from other organizations. He and other civil society
activists had sent a negative assessment back to the Finance
Ministry, whose officials had said that they agreed but that
they did not have the main decisionmaking role on the issue.
Dzhibladze added that he had heard the Council of Europe
might also have received the draft forms for comment.
.
GEARING UP FOR TROUBLE
--------------


4. (C) The Ambassador and others have continued to weigh in
with our concerns about the legislation and its
implementation. The Ambassador raised the issue in a March
14 meeting with Foreign Minister Sergey Lavrov, noting the
potential impact on Russia's image abroad. Lavrov
acknowledged that he understood that point and said that
expressing concern about implementation was a good course to
pursue. He also agreed that the MFA might usefully work with
the Ministry of Justice to organize a briefing for foreign
NGO's and foundations after the new law goes into effect in
April, to help explain procedures and make clear that the MFA
will monitor implementation.


5. (C) The Ambassador also raised our concern in a March 17
meeting with Vladimir Potanin, Chair of the Public Chamber's
Commission for Developing Charity, Mercy and Volunteering.
Potanin noted that he was interested in learning more about
the positive work done in other countries by foundations, and
that demonstrating such benefits might ease some concerns
about NGOs. We also expressed concern March 22 to Vyacheslav
Nikonov, Chair of the Chamber's Commission on International
Cooperation and Public Diplomacy. Acknowledging the concern,
Nikonov said he planned to hold a Commission roundtable with
foreign NGOs, probably in May, at which they could discuss
their initial experience with the legislation. Holding such
a session would counter any charges that the GOR was not

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listening to NGO complaints while also demonstrating the
Public Chamber's interest in the issue, Nikonov added.


6. (C) Civil society activists continue to express concern
but take a wait-and-see attitude. In a recent meeting with
the Ambassador, Moscow Carnegie Center Senior Scholar Liliya
Shevtsova said the Kremlin was unlikely to launch a major
attack on independent NGOs at least until after the G-8
Summit, and might not do so at all, instead pursuing an
incremental approach against such organizations. In a March
20 visit by the Ambassador to the Moscow Helsinki Group (MHG)
offices, MHG head Lyudmila Alekseyeva agreed that attacks on
her organization might not begin in earnest until after the
G-8 Summit and perhaps not until August. Still, she
predicted that when the legislation goes into effect, smaller
regional NGOs would be the first to be targeted. Another MHG
staffer at the session added that problems already were
mounting for regional NGOs, such as some in Nizhniy Novgorod
which were losing the low rent they had long enjoyed from the
regional government.


7. (C) Many activists are also preparing their NGOs for the
legislation's new requirements, recognizing that even a minor
violation of those requirements will create a vulnerability
that the Kremlin will likely exploit. Ekho Moskvy chief
editor Aleskey Venediktov told us March 23 that, just as the
Kremlin had used minor technicalities to keep the Rodina
party off the ballot in several regional elections earlier
this month (ref b),it would be in a position to do the same
with NGOs that fail to complete registration forms properly.
Moscow Carnegie Center head Rose Goettemoeller told the
Ambassador that she was keeping a close eye on how the
legislation would be implemented while also ensuring her
organization's tax documentation was in order. The Moscow
Helsinki Group's Alekseyeva told the Ambassador that she was
briefing MHG's younger staffers on how to conduct themselves
during investigations.


8. (SBU) Shevtsova has argued for an effort to improve the
image of foreign NGOs. Along with New Eurasia Foundation
head Andrey Kortunov and others, she is seeking to organize
an event to highlight positive contributions by such NGOs to
solving social, health and other problems, and is hoping to
draw media attention to the event. The Embassy is working
with Shevtsova on the effort, and the Ambassador has urged
other embassies to follow suit.
.
OPEN RUSSIA AS A TROUBLING DEVELOPMENT
--------------


9. (C) The civil society community was shaken by the
Procuracy's March 16 announcement about the freezing of
assets of the Open Russia Foundation in connection with an
investigation of charges that the NGO was involved in money
laundering for Mikhail Khodorkovskiy, its founder and chief
sponsor. On March 20, Open Russia announced it would suspend
its operations. Ekho Moskvy's Venediktov was among several
observers who predicted to us that Open Russia was almost
certain to close down permanently. A UK emboff told us EU
embassies would meet in the next few days to decide whether
and how to voice their concern about Open Russia to the GOR.


10. (C) Several interlocutors noted to us that the Open
Russia case was not directly linked with the new legislation.
They saw it primarily as a further attack on Khodorkovskiy.
Andrey Ryabov of the Institute of World Economy and
International Relations added to us on March 22 that Open
Russia had effectively reached out to mid-level elites in the
provinces, and that the Presidential Administration had tried
countering that by creating its own institution to train
regional bureaucrats. Most of those bureaucrats continued to
work with Open Russia rather than the more vacuous
Kremlin-affiliated institute, Ryabov continued, which may
also help explain the Procuracy's action.


11. (C) Even if the Open Russia case is not directly tied to
the legislation, civil society activists see it as an
alarming indicator of Kremlin intentions toward independent
NGOs. Ryabov told us the Kremlin saw Open Russia's
effectiveness in encouraging independent thinking and
organizational activism in the regions as a threat that had
to be eliminated. While the Khodorkovskiy factor made the
Kremlin take a particularly harsh approach toward Open
Russia, the thinking that motivated it would lead to
sustained, if perhaps more nuanced, action against other
elements of civil society once the legislation goes into
effect.
.
COMMENT
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12. (C) Few observers are surprised at the lack of public
information about implementing regulations. While continuing
to adopt a wait-and-see attitude, they are preparing
themselves for potentially stringent new requirements that
they expect to be set out in the implementing regulations.
Smaller NGOs feel particularly vulnerable, given their likely
inability to field the kinds of resources that may be needed
to fulfill the legislation's requirements. Even the more
established groups, however, worry, particularly given the
ambiguity of the legislation and the Kremlin's proven ability
to eliminate Rodina's participation in recent regional
elections. While seeing the latest attack on Open Russia as
a bad sign, independent NGOs believe the Kremlin will not
apply the legislation too heavy-handedly at least in the
run-up to the G-8 Summit. There is widespread concern about
what will come thereafter, but many organizations are hopeful
that they will continue to operate despite the added
challenges. We sense deep concern, but not resignation or
despair.
BURNS