EX-MEMBER OF THE BOARD OF DIRECTORS OF EBRD RECEIVES FIVE YEAR SUSPENDED SENTENCE

On 16 June 2014 a former director of the European Bank for Reconstruction and Development (EBRD) Ms Yelena Kotova and her accomplice Mr Igor Lebedev were found guilty by the Simonovsky District Court of Moscow of attempting to obtain a commercial bribe.

The investigation found that in 2009-2010 Ms Kotova solicited $1.425 million from the member of the board of Canbaikal Resources Inc. (a Canadian oil company) in exchange for helping it obtain a $95 million loan from the EBRD. Mr Lebedev a former top manager of a leading Russian bank, acted as a negotiator between Ms Kotova and the Canadian company.

Ms Kotova was given a five-year suspended sentence. Her accomplice received a four-year suspended sentence.

PROSECUTOR'S GENERAL OFFICE OF RUSSIA PREPARES ANTI-CORRUPTION DRAFT LAW

On 2 June 2014 the Prosecutor's General Office of Russia published a draft law pursuant to recommendations of the Group of States Against Corruption (GRECO).  The main aim of the draft law is the further implementation of provisions of the Council of Europe Criminal Law Convention on Corruption 1999 (Convention) into Russian law.

Under the draft law, provisions of the Penal Code of Russia on bribery are amended in order to comply with the same provisions in the Convention. The draft law inter alia widens the definition of bribe so as to include intangible benefits and defines certain acts as new criminal offences: bribing arbitrators and undue influence.