References: Federal Law on Public Civil Service, Article 4 passed on July 27, 2004.

Anatoly Serdyukov has resigned as defense minister because his father-in-law is the new Prime Minister. The appearance of nepotism is never good, but it threatens to be lethal when the relatives involved are anti-corruption campaigners. Serdyukov had been cleaning house at the Defense Ministry, while his father-in-law, Viktor Zubkov, had been fighting money laundering on a government task force. Zubkov, whose anti-corruption credentials probably played a major role in his promotion in mid September, would have had zero credibility in any future crackdown on government corruption if Serdyukov had stayed on.

It is curious that it took six full days for Serdyukov to submit his resignation. President Vladimir Putin certainly has known about the two men's ties for some time. And Serdyukov and Zubkov, as anti-corruption campaigners, surely must have felt uncomfortable for the past week. Yet no one uttered a word about any conflict of interest.Russia, thankfully, is not like other former Soviet republics such as Kazakhstan and Azerbaijan, where the presidents' families play prominent roles in their countries' political life. The closest Russia got was in the late 1990s, when Boris Yeltsin hired his daughter Tatyana Dyachenko as an adviser.

In announcing Serdyukov's resignation on September 18, Zubkov linked it to their family ties. A Kremlin spokesman went on to explain that the law prohibits close relatives from working together. The government now should go a step further and take the high road in other possible conflicts of interest. It probably would be unfair to make a big deal out of the marriage of Justice Minister Vladimir Ustinov's son to the daughter of Kremlin deputy chief of staff Igor Sechin. But the mere fact that Zubkov and Serdyukov, a former Federal Tax Service chief, headed federal agencies for years does raise a myriad of ethical questions.

Moving beyond the upper tiers of government, the issue becomes a bit more gray -- especially when the worlds of politics and business collide. The children of many prominent officials in the current administration also seem to have it made. The sons of acting First Deputy Prime Minister Sergei Ivanov work in banks: Sergei, 26, is a vice president at Gazprombank, while Alexander, 30, works at Vneshekonombank. Sergei Matviyenko, the son of St. Petersburg's governor, is vice president at VTB. Dmitry Patrushev, son of the Federal Security Service director, reportedly oversees loans to oil companies at the same bank. Patrushev's younger brother, Andrei, 26, advises Rosneft chairman Igor Sechin. The list could go on and on.

President Vladimir Putin refused to accept Anatoly Serdyukovs resignation. Deputy Prime Minister Sergei Naryshkin, who supervises public administration reform in the government, said September 26 that he did not think familial relationships between Cabinet members would affect the overall performance of the government.

"In my opinion, this should not hinder government members' performance of their duties in any way," Naryshkin said, Russkaya Sluzhba Novostei radio service reported. "I have to say that we have good, comradely relations."

Two members of the new Cabinet are married to each other: Health and Social Development Minister Tatyana Golikova and Industry and Energy Minister Sergei Khristenko.

A Russian citizen cannot become or remain a civil servant in case of close kinship ties with civil servants (parents, spouses, brothers, sisters, sons, daughters as well as spouses brothers, sisters, parents or children) if their civil service implies one being in immediate subordination or under control of another. Everyone knows that nepotism in Russian government institutions is not a rare thing. The situation for civil servants is even worse since the concept of being under control is quite blurred.

Is a defense minister subordinate to the prime minister? If so, then Viktor Zubkov could not have possibly been offered the new job as his son-in-law was already working in the government. If not, then Anatoly Serdyukov did not have to offer his resignation. It means that the law is not the problem. Serdyukov made it a point saying that he was stepping down due to ethical reasons. Relatives are prohibited by law from working under each other in government service. As defense minister, Serdyukov reports to the president and not the prime minister, meaning the law does not apply in this case. The same is true of Golikova and Khristenko because neither works under the other.

(Take the High Road against Corruption, The Moscow Times daily, September 20, 2007, available at [ LINK ]) See also "Defense Minister Resigns over Family Ties" by Miriam Elder and Francesca Mereu, The Moscow Times daily, September 19, 2007, available at [ LINK ]. The Law of In-Laws, Kommersant daily, Sept24, 2007, available at [ LINK ]" target="_blank">[ LINK ] Minister Says Family Ties Won't Affect Cabinet, The Moscow Times daily, September 27, 2007, available at [ LINK ] See also "Russia: Anticorruption Figure Sees Troubling Trends in Russia" by Veronika Bode, RFE/RL, October 1, 2007

Kommersant daily provides a list to 35 relative groups in Russian power institution. (The Law of In-Laws, Kommersant daily, Sept24, 2007, available at http://www.kommersant.com/p806986/Relatives_Nepotism_Serdyukov/)

References: Federal Law on Public Civil Service, passed on July 27, 2004.

References: Federal Law on Public Civil Service, Article 58, part 7 and Ch. 16.

Peer Review Comments: The introduction of a system of administrative justice has been discussed in Russia for 10 years. The draft of a law on administrative courts, which may provide a redress mechanism for the civil service, was discussed in 2001 and will be introduced in a while within the administrative reforms (see [ LINK ]).

References: Federal Law on Public Civil Service, passed on July 27, 2004, Article 16. Articles 285, 286 and 291 of the Criminal Code of Russia also include a ban on taking any posts after an imprisonment (up to 3 years). Such decision is a part of a verdict.

Peer Review Comments: The social scientist refers to article 16 of the Federal Law on Public Civil Service, passed on July 27, 2004, and says, "Articles 285, 286 and 291 of the Criminal Code of Russia also include a ban on taking any posts after an imprisonment (up to 3 years)." The social scientist adds that such a decision is part of a verdict.

Peer Review Comments: I do not know of any cases in which a civil servant convicted of corruption was working for the government afterwards.

On the other hand, many officials, especially on the local level and especially in low-ranking offices, are complaining, when they are out of earshot of their superiors, about being forced to join United Russia. (Editorial: "The Kremlin's Favorite", Gazeta.ru, August 2, 2007)

According to deputy chairman of the State Duma Committee for Constitutional Legislation and State Development, member of the LDPR faction Alexei Mitrofanov, the United Russia has 60 governors, 60 legislatures where they have the majority. ("Experts Remarks Regarding Proposed Law on Opposition", Mayak Radio, 12:16, February 2, 2007, source: www.fednews.ru)

In October 2007, Egor Stroev, the Governor of Oryol Region and a member of th High Council of Edinaya Rossiaya party, came up with a decision to enlist more members for his party. At a September meeting with high-ranking regional officials he told his subordinates that they should either join the party, or lose their posts. He most likely was motivated by recent sacking of governors of Novgorod and Samara regions who failed to provide an expected support to Edinaya Rossiya at March 11 election. (See more at "Or To Be Sent to Back of Beyond" by Valentina Ostroushko, Novye Izvestiya daily, September 5, 2007, available at [ LINK ])

References: Various publications in Russian media.

References: The law of the In-Laws, Vlast monthly, September 24, 2007. [ LINK ]

Vlast monthly published a report called "The Law of In-Laws" (Sept. 24, 2007) following a resignation filed by Russia's acting Defense Minister Anatoly Serdyukov who said saying he has to step down because the new prime minister, Viktor Zubkov, is his father-in-law. President Putin didn't accept it. A Russian citizen cannot become or remain a civil servant in case of close kinship ties with civil servants (parents, spouses, brothers, sisters, sons, daughters as well as spouses, brothers, sisters, parents or children) if their civil service implies one being in immediate subordination or under control of another.

Vlast took a look at the situation at Russian civil service. Kommersant has thrown a glance on the issue only to find 35 examples of kinship ties in Russian power institution.

Fathers and Sons

Father. Alexander Bakhmurov, director of the Federal Tax Service for Samara Region. Son. Yaroslav Bakhmurov, head of the Samara branch of the Rostekhinvetarizatsia state-run firm*.

*Kommersant considers work in companies where the government holds the controlling stake as the state service.

Father. Sergey Bogdanchikov, Rosneft CEO (the governments stake is more than 75 percent). Son. Alexey Bogdanchikov, director of the investor relations department at Rosneft.

Father. Anatoly Gaida, first deputy head of the Sverdlovsk Region Governors administration. Son. Sergey Gaida, head of the Federal Property Management Agency for Sverdlovsk Region.

Father. Nikolay Kabikeev, chairman of the agriculture, food and environment committee of the Astrakhan Regional Duma. Son. Askar Kabikeev, Astrakhan Regions International Cooperation Minister.

Father. Evgeny Murov, director of the Russian Federal Guard Service. Son. Andrey Murov, director general of the state-owned Pulkovo Airport company.

Father. Nikolay Patrushev, director of the Russian Federal Security Service. Son 1. Dmitry Patrushev, Vneshtorgbank Vice-President (the governments share is more than 75 percent). Son 2. Andrey Patrushev, advisor for Rosnefts chairman of the board (the governments stake is more than 75 percent).

Father. Leonid Polezhaev, Omsk Region Governor. Son. Konstantin Polezhaev, deputy at the Omsk Regional Legislative Assembly.

Father. Murtaza Rakhimov, President of the Russian internal republic of Bashkortostan. Son. Ural Rakhimov, deputy at Bashkortostans State Assembly.

Father. Viktor Sazonov, speaker of the Samara Regional Duma. Son. Dmitry Sazonov, deputy head of the Interior Department for Samara.

Father. Egor Stroev, Orel Region Governor. Daughter. Marina Rogacheva, representative of the Orel Regions administration in the Russian Federal Council.

Father. Vladimir Ustinov, acting Justice Minister. Son. Dmitry Ustinov, employee at the Russian presidential administration.

Father. Sergey Shoigu, acting Civil Defense, Emergency Situations and Elimination of the Consequences of the Natural Disasters Minister. Daughter. Yulia Shoigu, director of the Center for Emergency Psychological Aide at the Civil Defense, Emergency Situations and Elimination of the Consequences of the Natural Disasters Ministry.

Mother. Takibat Makhmudova, state secretary of the Russian internal republic of Dagestan. Son. Anvar Makhmudov, prosecutor of the Agul district of Dagestan.

Brothers & Cousins

Cousin. Ramzan Kadyrov, Chechen President. Cousin 2. Odes Baisultanov, Chechen Prime Minister.

Brother. Rustam Minnikhanov, Tatarstan Prime Minister Brother 2. Rifkat Minnikhanov, director of the traffic police in Tatarstan. Brother 3. Rais Minnikhanov, head of the Sabinsky municipal district in Tatarstan.

Brother. Andrey Fursenko, Education and Science Minister. Brother 2. Sergey Fursenko, director general of Lentransgaz, subsidiary of state-owned Gazprom.

Brother. Ismail Efendiev, Dagestans Labor and Social Development Minister. Brother 2. Robert Efendiev, director of Makhachkalas Employment Center.

Husbands & Wives

Husband. Alexander Artemov, Omsk Region Deputy Prime Minister and chief of the Omsk Governors staff. Wife. Inessa Artemova, Omsk Region Deputy Labor and Social Development Minister.

Husband. Alexander Beglov, director of the Russian presidents control department. Wife. Natalya Beglova, chairman of the civil status registration committee at the St. Petersburgs administration.

Husband. Sergey Bozhenov, Astrakhan Mayor. Wife. Olga Bozhenova, first deputy head of the committee on state organization, law, justice and security at the Astrakhan Regional Duma.

Husband. Sergey Dukanov, head of the Federal Tax Services branch in Voronezh Region. Wife. Elena Dukanova, director of the nonprofit and religious organizations oversight department at the Federal Registry Service for Voronezh Region.

Husband. Dzhamaludin Omarov, head of the Kaspiisk municipal district in Dagestan. Wife. Takibat Makhmudova, Dagestan Secretary of State.

Husband. Vasily Oyun, chairperson of the legislative chamber of the Russian internal republic of Tuva. Wife. Chechena Oyun, deputy head of the tax inspectorate in Kyzyl, Tuvas capital.

Husband. Sergey Stepashin, chairman of the Russian Audit Chamber. Wife. Tamara Stepashina, member of the supervisory board at the VTB Severo-Zapad bank, part of the VTB group which is 75-percent state-owned.

Husband. Alexander Fedyunin, head of the staff and deputy head of the Volgograd Regions administration. Wife. Tatyana Nadezhdina, deputy head of the Volgograd Region.

Husband. Alexander Frolov, chairman of the business committee at Volgograds city hall. Wife. Valentina Rakova, director of the Federal Property Management Service in Volgograd Region.

Husband. Viktor Khristenko, acting Industry and Energy Minister. Wife. Tatyana Golikova, Deputy Finance Minister.

Husband. Rifkat Shabanov, deputy at the Astrakhan Regional Duma. Wife. Munira Shabanova, deputy chairman of the property relations committee at Astrakhans administration.

In-Laws

Vladimir Ustinov, acting Justice Minister. Igor Sechin, deputy head of the Russian presidential administration and the Russian presidents aide. Vladimir Ustinovs son, Dmitry, is married to Igor Sechins daughters Inga.

Uncles & Nephews

Uncle. Vladimir Kulakov, Voronezh Region Governor Nephew 1. Sergey Zhukov, deputy speaker of the Voronezh Region Duma. Nephew 2. Alexander Zhukov, deputy head of the Voronezh City Duma. The two officials are nephews of the governors wife, Lilia Kulakova.

Uncle. Khizri Shikhsaidov, chief of Dagestans Audit Chamber. Nephew. Murat Sikhsaidov, Dagestani Agriculture Minister.

Families

Father. Mukhu Aliev, Dagestani President. Brother. Makhach Aliev, Judge of the Sovetsky district of Makhachkala. Cousin. Omaraskhab Absulmuslimov, Dagestani First Deputy Agriculture Minister. Son. Khadzhimurad Aliev, deputy head of the Federal Tax Services branch for Dagestan.

Father. Said Amirov, Makhachkala Mayor. Brother. Magomedsalam Amirov, Judge of the Kirovsky district of Makhachkala. Son. Dalgat Amirov, deputy head of Dagestans bailiff service.

Father. Vladimir Radul, Omsk Region Culture Minister Brother. Valentin Radul, managing director of the territorial fund for compulsory medical insurance for Omsk Region. Son. Vladimir Vadul, Omsk Regions Deputy Labor and Social Development Minister.

Father. Mintimer Shaimiev, Tatar President. Son. Airat Shaimiev, director general of the 100-percent state-owned Tatar railroad company, Dorozhny Service Respubliki Tatarstan. Nephew 1. Ilshat Fardiev, director general of the 100-percent state-owned Tatenergo. Nephew 2. Rinat Fardiev, head of the Zainsky municipal district of Tatarstan.

References: Report in Vlast monthly, Sept.24, 2007, available at [ LINK ]. See also [ LINK ].

Kommersant daily provides a list to 35 relative groups in Russian power institution. (The Law of In-Laws, Kommersant daily, Sept24, 2007, available at [ LINK ])

References: An interview with a high-ranking official of Russian Audit Chamber.

References: "Princes and Paupers of Russian Bureaucracy" by Dmitri Balburov, Konstantin Smirnov, Gennadi Petrov, Gazeta daily, December 18, 2006, available at: [ LINK ].

In October 2007, Novaya Gazeta thrice-weekly has published a list of holders of a special Aeroflot Business Pass - a free pass to (largely) business class trips on domestic (and for most holders, international) flights. Most holders are high-ranking public officials, some are businessmen. Aeroflot is a state-run corporation. For more information, go to [ LINK ], [ LINK ], [ LINK ], [ LINK ].

An interesting analysis of how top public officials are involved in activities of state-owned enterprises and why this is quite profitable: [ LINK ]

See also: [ LINK ]; [ LINK ]; [ LINK ]; [ LINK ].

See also: "BRIBES AS SALARY SUPPLEMENTS" by Kira Vasilieva, Novye Izvestia, October 11, 2007.

Peer Review Comments: What is described concerns top officials only. For the rank and file, there's little chance of getting extra money.

Peer Review Comments: The assessment refers to special rates for civil servants, work-related services (such as a company car), and bribes. I would not consider these bonuses. If a bonus is considered to be an additional performance-based payment, this is not common in Russia.

References: An interview with a high-ranking official of Russian Audit Chamber.

References: High-ranking official of Russian Audit Chamber.

Bureaucrats are still crying poor, but their average salaries are now higher than the average income figure for citizens in general (13,500 rubles a month/US$550.80 as of July 2007). Regional bureaucrats at various levels grew richer in the first half of 2007. The salaries of staff at regional departments of federal executive branch bodies (such as regional departments of the Tax Inspectorate or the Consumer Protection Inspectorate) rose by 37.9 percent, to 15,803 rubles (US$664.75) a month. The real salaries of regional executive branch employees rose by 22.9 percent, to 23,029 rubles (US$939.58) a month. The salaries of local government employees reached 13,692 rubles (US$558.63)a month - a rise of 22.7 percent.

In real terms, counting inflation, the salaries of bureaucrats in the regions rose by 14 percent; average incomes for citizens in general rose by 17.4 percent. As we can see, public servants and officials aren't limiting their incomes at all. This is particularly true of regional government ministers: their average monthly salaries are 50 percent higher than those of staff at regional departments of federal executive branch bodies.This is hardly surprising, given that regions are allowed to determine the structure of their own governments, staff numbers, and pay scales. The regional bureaucrats are generous to themselves - especially in regions where valuable natural resources are mined. For example, bureaucrats in the Nenets and Khanty-Mansiisk autonomous districts make about 60,000 rubles (US$2,447.98) a month - double the salaries of their counterparts in Moscow or St.Petersburg.

In depressed regions, bureaucrats have to make do with salaries that are lower than the regional average. For example, government administrative staff in Dagestan or the Kostroma region is still living on 10,000 rubles (US$407.99) a month. (Salaries Rise - Lines Remain by Olga Gorelik, Izvestia daily (Moscow), September 17, 2007)

See also "Profitable Chair", Kommersant daily, September 17, 2007, available at [ LINK ]. See also [ LINK ].

References: An interview with a high-ranking official of Russian Audit Chamber.

See also [ LINK ] and

[ LINK ].

Two examples. "Former Volgograd Mayor Yevgeny Ishchenko walked free from jail on June 13, 2007 after being sentenced to one year time served and banned from holding public office for four years. A Volgograd court convicted Ishchenko, 34, of illegal participation in business activities and illegal possession of ammunition. A charge of abuse of office was thrown out." ("Ex-Volgograd Mayor Convicted and Freed", report by The Moscow Times daily on June 14, 2007).

" Former Vladivostok Mayor Yury Kopylov on May 7, 2007 was given a four-year suspended sentence for abuse of office in a case of cold cash and a columbarium. The Leninsky District Court found that Kopylov had acted illegally when he signed a $3.8 million contract in November 2003 to buy building materials from Japanese company Shiroyama. Prosecutors said Kopylov, 61, had failed to coordinate the contract with other city officials and to organize a tender. He made no provision for funding the contract in the city's budget, yet paid 6.5 million rubles ($243,000) in municipal funds to Shiroyama as a down payment. Kopylov denied the charges.

Kopylov was appointed acting mayor of Vladivostok in 1999, and prevailed in the 2000 mayoral race. Four years later, he was defeated by the current mayor, Vladimir Nikolayev. Prosecutors sent the case against Kopylov to court last November, shortly after the current administration received an arbitration court order to pay Shiroyama more than 21.5 million rubles (US$834,000) in outstanding debt.

In total, Shiroyama delivered materials worth nearly 30 million rubles (US$1.16 million) for the columbarium, which was intended to house the ashes of deceased World War II veterans. An arbitration court later annulled the contract. The columbarium was never built. Deputy city prosecutor Miroslav Yermolayev told reporters that he would appeal, because Kopylov had not been sentenced to jail time. In addition to his four-year suspended sentence, Kopylov was banned from holding public office for two years. Prosecutors had sought a term of five years in prison and a three-year ban on holding public office." ("Ex-Mayor Escapes Prison Term", report by Alyona Sokolova, The Moscow Times daily, May 8, 2007)

References: High-ranking official of Russian Audit Chamber.

Peer Review Comments: In most of the cases, they are not hired for a long period of time after being sentenced.

Peer Review Comments: In practice, those who are convicted will rarely get a civil service position in the future, but often something happens during the investigation. In many cases, such investigations are not carried to their conclusions and civil servants get their positions back or get different ones.

References: Federal Law on Public Civil Service, Article 17, Part 1, Paragraph 15.

References: Federal Law on Public Civil Service, passed on July 27, 2004, Article 17, Paragraph 3, Subparagraph 1

Peer Review Comments: Formally the answer should be "yes," but the restrictions mentioned by the expert are very weak.

In June 2006, the Supreme Court of Arbitration prepared a draft law, according to which it was decided to regulate presents to state figures differently. The total of permitted presents to officials and judges is increased from 500 to 4,000 rubles (US$20.40 to US$163.20) and personal presents worth more than 100,000 (US$4,079.97) have to be declared. ("Official Feeding Trough" by Valeriy Vyzhutovich, Rossiyskaya Gazeta daily, November 13, 2006)

References: Decree of the President of the Russian Federation of measures to strengthen discipline in system of civil service, June 4,1996: [ LINK ]).

"There are still very many cases where officials combine their state or municipal offices with positions in commercial structures or act as their founders. A splendid example is the chief of the Altay hunting service, who was at once general director and shareholder of a commercial company that is organizing hunting. A criminal case was opened against him on charges of "illegal participation in entrepreneurial activity." In Kemerovo Oblast, more than 40 officials from the territorial Rostekhnadzor (Federal Service for Environmental, Technological and Nuclear Oversight) Administration worked simultaneously in subordinate organizations. Officials in many regions almost openly combine their state or municipal duties with commercial activity." (Interview with Russian First Deputy General Prosecutor Aleksandr Buksman by Andrey Sharov: "No Give, No Take. The General Prosecutor's Office Has Launched an Offensive Against Corrupt Officials", Rossiyskaya Gazeta, November 8, 2006)

References: An interview with a high-ranking official of Russian Audit Chamber.

References: An interview with a high-ranking official of the Russian Audit Chamber.

The tribunal found that Reiman had "used his powers contrary to the interests of his office" and put his "personal enrichment" before the interests of state companies he was supposed to protect..On one occasion, it said, he forced a telecommunications company to buy a firm he owned "for an exorbitant amount" in exchange for granting government-operating licenses.

See more about holding both a public office and a position at the private sector: [ LINK ]; [ LINK ].

References: An interview with a high-ranking official of th Russian Audit Chamber

"Russia at Heart of German Probe", by Greg Walters and Catherine Belton, The Moscow Times daily, July 26, 2006.

In October 2007, a list of high-ranking officials of the Moscow city government and their business affiliations was published after an attempt by a a liberal faction of the Moscow city legislature to prohibit such commercial involvement was rejected. For more information, see [ LINK ], [ LINK ], [ LINK ].

On relatives of high-ranking Russian officials and their business activities see here: [ LINK ] and here [ LINK ].

Trutnev's income declined from US$7.9 million in 2005, according to an annual list of ministerial income declarations published on August 3 on government newspaper Rossiiskaya Gazeta's web site. The country's monthly average wage was at 13,810 rubles (about $540) in June, according to the State Statistics Service.In 2005, Trutnev also received payments for a stake in EKS, which also owns a chain of supermarkets, and reported the highest earnings of any Cabinet members.

Newly-appointed Defense Minister Anatoly Serdyukov earned the least, about US$49,000. Economic Development and Trade Minister German Gref, who reported the lowest income of any Cabinet member for 2005, earned US$71,500 in 2006, compared with about US$45,000 in the previous year.

IT and Communications Minister Leonid Reiman had the second-highest income in the Cabinet, reporting $4.4 million for 2006. His income rose more than tenfold from 2005. Reiman probably sold five apartments, each measuring between 151.5 square meters to 283.7 square meters, the paper said.

Prime Minister Mikhail Fradkov's earnings rose 44 percent, to about 2.6 million rubles (US$102,000)." ("Trutnev is Cabinet's Top Earner", The Moscow Times daily, August 6, 2007) For problems with filing and accessing asset disclosure records of any officials, see [ LINK ].

The problem with accessing these declarations is that there is no opportunity to verify them: "When the law on civil service was adopted, this is all defined there. But we did not insist in the past that one should prove the legal origin of one's incomes. This is what the international convention requires.Today the State Duma has prepared a draft law on counteracting corruption which is entirely new. Our draft law would have a civil servant submit all the tax returns, including those of the members of his family. Some prominent human rights activists correct us because they say it violates the principle of presumption of innocence.Having said that, many still want to introduce an article that would make the civil servant answerable for all the members of his family. So far the Constitution does not allow us to do it." (RADIO INTERVIEW WITH ARKADY BASKAYEV, MEMBER OF THE STATE DUMA ANTICORRUPTION COMMISSION, EKHO MOSKVY RADIO, JANUARY 31, 2007)

"I do not even mention here a widespread violation of the law on income declaration. During the June-September 2006 inspection of Rosobrazovaniye (Federal Education Agency), about 250 individuals, or more than 70 percent of its officials, failed to file the declarations. We observed similar situations, even if not on such a large scale, in the Federal Customs and Tax Services, Rosaviatsiya (Federal Air Transport Agency), and Rostransnadzor (Federal Transport Oversight Service). (Sharov) What punishment do the state functionaries face in this connection? (Buksman) Disciplinary punishment at the least, but they can also be fired from state service." (Interview with Russian First Deputy General Prosecutor Aleksandr Buksman by Andrey Sharov: "No Give, No Take. The General Prosecutor's Office Has Launched an Offensive Against Corrupt Officials", Rossiyskaya Gazeta, November 8, 2006)

The March 1, 2007 meeting of interdepartmental anti-corruption task group established by President Putin in February 2007, was supposed among other things to discuss amendments to the law on the status of civil servants. The task group will design mechanisms of mandatory declaration of assets and prevention of legalization of criminal income. Moreover, it will have come up with something that will help civil servants to "avoid conflicts of interest."

Yaroslav Kuzminov from the Higher School of Economics points out that measures like that are practiced worldwide but "their efficiency in application to Russia is questionable." These measures, for example, include a civil servant's duty to report every proposal to participate in a business venture, both directly or via relatives. "That's a purely moral duty but it is fairly effective," Kuzminov said. "Its violation - if and when exposed - will cost the civil servant his or her position and internal investigation." Kuzminov added that purely punitive measures would be pointless. (FIGHT CORRUPTION! by Natalia Melikova, Nezavisimaya Gazeta daily, March 2, 2007)

Potential consequences for failing to provide valid information on assets and income also became in issue in 2007. Mikhail Grishankov, chairman of the Duma's anti-corruption commission, says that property confiscation is likely to be a penalty option across the entire range of corruption-related crimes. According to Grishankov, some legislation proposals have already been prepared as a result of joint projects by the Duma's anti-corruption commission and the Council of Europe. Grishankov says that confiscation will apply to assets proven to be the proceeds of crime. (A JOB FOR MIRONOV by Anna Nikolayeva, Anastasia Kornya, Vedomosti daily, March 19, 2007) See also here: [ LINK ]

References: Decree of the President of the Russian Federation "On providing information on income and property by persons holding governmental positions of the Russian Federation and by persons holding governmental positions at government service and positions in local agencies of self-government", May 15, 1997: [ LINK ]

Federal Law on Public Civil Service", passed on July 27, 2004, Art. 20;

[ LINK ]; [ LINK ]; [ LINK ].

An interesting approach to the real transparency of asset disclosure records of top public officials see here [ LINK ].

References: Federal Law on Public Civil Service, passed on July 27, 2004, Article 20, paragraph 5; [ LINK ]; [ LINK ]; [ LINK ]; [ LINK ].

References: [ LINK ]; [ LINK ]; [ LINK ].