New British anti-corruption law to curtail investment in Russia - expert
MOSCOW, April 8 (RIA Novosti) - A new British anti-corruption law will prevent British companies from cooperating with corrupt Russian firms, a Russian lawyer said on Friday.
The new law, known as UK Bribery Act 2010, will come into force on July 1 and is intended to provide an effective legal framework to combat bribery at home and abroad.
The new law, known as UK Bribery Act 2010, will come into force on July 1 and is intended to provide an effective legal framework to combat bribery at home and abroad.
"The new law will indirectly affect Russia," Dmitry Dementyev, senior associate at the Magisters law firm said. "A respectable British company will not deal with a Russian company that has dark spots on its reputation because it will cause preventive measures from law enforcement agencies. This will result in an outflow of investment in the Russian economy."
Dementyev said high levels of corruption in Russia are already deterring investors, especially in the real estate sector.
The Berlin-based non-governmental anti-corruption organization Transparency International has persistently rated Russia as one of the most corrupt nations in the world. The 2010 rankings put Russia in 154th place out 178 countries, on a par with Cambodia, Guinea-Bissau and the Central African Republic.
Dementyev described the law as an attempt by the British authorities to prevent foreign companies from receiving an advantage over law-abiding British firms by using corrupt schemes.
The new British law corresponds with international standards and is similar to U.S. anti-corruption legislation.
"The most important thing for us is how the law will be observed in Britain, especially as Russian business is much more incorporated with the British economy than with the U.S. economy," Dementyev said.
The law also poses a threat to large Russian companies carrying out business activities in Britain, he said.
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