Russian activist: Will they silence him? Russian shareholder rights activist Alexei Navalny has become a well-known public figure, using his popular blog to campaign against corruption and corporate murk. The question is how long he can get away with tactics that, in Russia, might prove dangerous.
In November, Navalny alleged huge embezzlement at oil pipeline company Transneft. Officials have disputed the scale of the losses — which amount to $4 billion according to Navalny. Yet no one has denied the authenticity of a leaked report, published on his blog, detailing massive and “unfounded” cost inflation during construction of the East Siberian Pacific Ocean pipeline.
Other big state companies have not escaped Navalny's spotlight. VTB Bank sacked the head of its leasing division after he exposed a murky $650 million deal to buy Chinese oilrigs. He also has taken oil company Rosneft to court over its refusal to disclose the minutes of board meetings. Russia’s Supreme Commercial Court is due to rule on the case shortly, and there are signs that the blogger-activist may score an important victory for small shareholders’ rights.
The Navalny phenomenon is an encouraging signal. Russia's fledgling civil society is finding a voice, and using the Internet to make it heard. But a backlash is brewing. Stung by the blogger's revelations, the Russian establishment is mustering its usual resources to silence him.
For a start, lawmakers are mulling legal amendments that would limit the right of small shareholders to force corporate disclosures. Details are still vague, but the proposals are already causing consternation among western investors.
But there could be worse in store for Navalny. Prosecutors are studying allegations made by a provincial businessman, who claims Navalny cost his company $32,000, at a time when he was advising a reformist local governor. An anonymous source in the police ministry told Itar-Tass news agency that the blogger is suspected of several crooked financial deals.
That should sound alarm bells. Those who have challenged corruption in Russia in the past have faced slander, exile, arrest and even death. Yet silencing the popular Navalny will not be easy. Whether he’s allowed to continue his fight, or not, will speak volumes about Russia’s real commitment to the rule of law.