The price for being honest in Russia
The price for being honest in Russia is very high. Sergei Magnitsky was an accountant and auditor that investigated a large-scale systematic theft from the Russian state, sanctioned and carried out by Russian officials. He was sent to prison, beaten and eventually died.
No one in Russia has been punished for the theft or for Sergei’s death. Apparently since the criminals have protection “from the top”.
According to the organization Biznes-Solidarnost – which works to protect the rights of small businesses – one out of every six business men in Russia are in prison, and many of them are ordinary small business owners.
The corrupt police and judges are “useful” tools for competitors that want to stop a competitor. A few bribes, and the competitor is sent to prison.
Entrepreneurs that are successful run the risk of getting an offer they can’t refuse. Dmitrij Malov in Kostroma, was contacted by the FSB (the security forces) and requested to sell his company under market value. He refused, and was sent to prison, accused of stealing his own company.
For Russia, this is a tragedy. The challenges and risks that bureaucracy and corruption creates for entrepreneurs, means that tens of thousands of potential businesses never come to be. In addition it is a tragedy from a Human rights perspective.
Since this bandit culture to a large extent is sanctioned by the current rulers, we sincerely hope that the Russian people changes their leaders soon.