Support The Moscow Times!

Academics Fear Blow to Economy From 'Foreign Agent' Law

Russian economists warned the government on Thursday that a new law that might force their research centers to register as "foreign agents" could have a disastrous impact on the economy.

In a letter published by business daily Vedomosti, 15 academics said their funding and cooperation with the government was threatened by the law, which President Vladimir Putin's opponents say is mainly intended to stifle dissent after protests.

Critics say the law will reduce the independence of non-governmental organizations that are funded from abroad and involved in what are loosely defined as "political activities."

Prosecutors have raided the Moscow offices of international advocacy groups in recent months, including Amnesty International, as well as the headquarters of vote monitor Golos and the independent Levada Center polling group.

The letter's publication following the flight abroad of liberal economist Sergei Guriev is a new sign of pressure on people or groups independent or critical of Putin.

"Continuing with the cruel and lawless application of the law on foreign agents … will lead to the closure of analytical centers, a drop in the quality of economic analysis and expertise, and the removal of mechanisms to support and keep up standards in the profession," the economists wrote.

Putin has called for budget stimulus to get the slowing Russian economy back on track, putting him at odds with Prime Minister Dmitry Medvedev, who favors a tighter fiscal policy.

The Central Bank, where senior Kremlin aide Elvira Nabiullina takes over the reins next month, has also come under pressure to cut interest rates to boost growth.

The group of economists was led by Yevsei Gurvich, who heads a think tank that advises the Finance Ministry and is regarded as close to Alexei Kudrin, a liberal former finance minister who is popular with Western investors.

"There has already been a period in our history when economic science and economic analysis was fully controlled by the state. As a result … incompetent decisions were taken on economic policy. It is well known how it turned out for the Soviet economy," they wrote.

The economy was in a state of collapse when the Soviet Union was dissolved in 1991, contributing to its breakup.

Many groups are resisting registering as "foreign agents" under the new law because it has echoes of the Cold War.

The Kremlin denies cracking down on opponents and Putin says he wants to prevent "foreign meddling" in Russia.

Related articles:

Sign up for our free weekly newsletter

Our weekly newsletter contains a hand-picked selection of news, features, analysiss and more from The Moscow Times. You will receive it in your mailbox every Friday. Never miss the latest news from Russia. Preview
Subscribers agree to the Privacy Policy

A Message from The Moscow Times:

Dear readers,

We are facing unprecedented challenges. Russia's Prosecutor General's Office has designated The Moscow Times as an "undesirable" organization, criminalizing our work and putting our staff at risk of prosecution. This follows our earlier unjust labeling as a "foreign agent."

These actions are direct attempts to silence independent journalism in Russia. The authorities claim our work "discredits the decisions of the Russian leadership." We see things differently: we strive to provide accurate, unbiased reporting on Russia.

We, the journalists of The Moscow Times, refuse to be silenced. But to continue our work, we need your help.

Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and every contribution makes a significant impact.

By supporting The Moscow Times, you're defending open, independent journalism in the face of repression. Thank you for standing with us.

Once
Monthly
Annual
Continue
paiment methods
Not ready to support today?
Remind me later.

Read more