RUSSIA

Egorov Puginsky Afanasiev & Partners

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Moldova Moldova Moldova Moldova Moldova

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Moscow, 119017

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St.Petersburg, 191186

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London EC4A 3DE

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5. anticorruption practices

In order to ensure correct and uniform application of the legislation, the Presidium of Supreme Court of the Russian Federation in its Decision No. 6 dated 10 February 2000 (amended 2007) On Court Practice in Bribery and Commercial Bribery Cases  (Plenum) noted that receiving the payment by the following persons may not be treated as bribery: employees of the state authorities or municipal authorities, state and municipal establishments, performing professional or technical functions that are not organizational and managerial or administrative and business. The Plenum has also explained which functions should be treated as organizational and managerial or administrative and business.

The Plenum further noted that the bribe and commercial bribe may be given not only be money, securities or other property, but also by pecuniary benefits which are provided gratuitously, but are normally required to be paid for (tourist vouchers, refurbishment of apartment, construction of country house). Pecuniary benefits further include reduction of lease payments, interest rates on bank credits.

The Plenum noted that extortion of a bribe is a request by an official or person exercising managerial functions in a commercial or other organization, to give a bribe or transfer illegal remuneration in the form of money, securities or other property and in case of commercial bribery be subject to the threat of taking action which may cause damage to legitimate interests of the person or put the latter in a position, where he is forced to give a bribe or to commit commercial bribery for the purpose of prevention of damaging consequences for his interests protected by law.

The court practice review shows that most of the convictions made by Russian courts for bribery in 2010 was against medical workers (25%), road police officers (14%), police officers (11%).

At the same time, it is important to note that out of all convicts only 2.7% were held liable for a bribe of more than RUB 1 million, while two thirds of them were punished last year for taking a bribe of RUB 500,000 – 10,000.

This indicates that corruption is being fought against mostly at a lower level.

About 25% of bribe-takers were sentenced to imprisonment, 63% were imprisoned on probation, and another 11.8% were fined. Moreover, 43% convicts were additionally prohibited from holding certain positions and from being engaged in certain types of activities.

Statistics show that fines, as a punishment, are seldom applied and therefore are  unlikely to play a significant role in preventing  corruption.