Nauru–Russia relations
Encyclopedia
Nauru-Russia relations are the bilateral relations between Nauru
and Russia
. Russia is represented in Nauru through its embassy in Canberra (Australia).
used Nauru banks to money launder during the 1990s; approximately USD 70 billion owned by Russian mafia were held in Nauru banks. This equated to 700 times the country's annual output. The money was transferred from Russian banks to accounts of banks chartered in Nauru, primarily to evade taxes as an offshore tax haven
.
In 2000, the President of Nauru, Rene Harris
, responded to claims of illegal money movements by saying "Nauru does not tolerate criminal activities in its financial system".
, the republics of Abkhazia
and South Ossetia
. Russia was reported to be giving Nauru $50m in humanitarian aid in return. Nauru's bilateral relations with Moscow have become even stronger after Nauru has recognized Abkhazia on December 15, 2009 and South Ossetia the next day. Nauru's foreign minister Kieren Keke
stated: "I hope that other countries will follow our example and also recognize the independence of Abkhazia". The issue was dealt with in the winter session of the parliament.
Russian officials visited Nauru in March 2010 to discuss the allocation of the "huge aid grant" that Russia will be providing to the small country.
Nauru
Nauru , officially the Republic of Nauru and formerly known as Pleasant Island, is an island country in Micronesia in the South Pacific. Its nearest neighbour is Banaba Island in Kiribati, to the east. Nauru is the world's smallest republic, covering just...
and Russia
Russia
Russia or , officially known as both Russia and the Russian Federation , is a country in northern Eurasia. It is a federal semi-presidential republic, comprising 83 federal subjects...
. Russia is represented in Nauru through its embassy in Canberra (Australia).
Russian financing
The Russian mafiaRussian Mafia
The Russian Mafia is a name applied to organized crime syndicates in Russia and Ukraine. The mafia in various countries take the name of the country, as for example the Ukrainian mafia....
used Nauru banks to money launder during the 1990s; approximately USD 70 billion owned by Russian mafia were held in Nauru banks. This equated to 700 times the country's annual output. The money was transferred from Russian banks to accounts of banks chartered in Nauru, primarily to evade taxes as an offshore tax haven
Tax haven
A tax haven is a state or a country or territory where certain taxes are levied at a low rate or not at all while offering due process, good governance and a low corruption rate....
.
International reaction
Nauru's role in Russian money laundering has attracted attention from around the world particularly after the September 11 attacks in 2001, when concern increased over the financing of terrorism. The Washington Post reported that: "International authorities say Nauru is increasingly providing cover for Russian organized crime" and quoted a senior US Government official:
The central bank of Russia has come to us and confirmed that large amounts of Russian capital are flowing into and out of Nauru, and that has raised concerns on their part and on ours and certainly raised suspicions.
In 2000, the President of Nauru, Rene Harris
René Harris
René Reynaldo Harris was President of the Republic of Nauru four times between 1999 and 2004. He was a Member of Parliament from 1977 to 2008.-Background and early career:...
, responded to claims of illegal money movements by saying "Nauru does not tolerate criminal activities in its financial system".
Nauru's recognition of Abkhazia and South Ossetia
In 2009, Nauru became only the fourth country to recognize the breakaway regions of GeorgiaGeorgia (country)
Georgia is a sovereign state in the Caucasus region of Eurasia. Located at the crossroads of Western Asia and Eastern Europe, it is bounded to the west by the Black Sea, to the north by Russia, to the southwest by Turkey, to the south by Armenia, and to the southeast by Azerbaijan. The capital of...
, the republics of Abkhazia
Abkhazia
Abkhazia is a disputed political entity on the eastern coast of the Black Sea and the south-western flank of the Caucasus.Abkhazia considers itself an independent state, called the Republic of Abkhazia or Apsny...
and South Ossetia
South Ossetia
South Ossetia or Tskhinvali Region is a disputed region and partly recognized state in the South Caucasus, located in the territory of the South Ossetian Autonomous Oblast within the former Georgian Soviet Socialist Republic....
. Russia was reported to be giving Nauru $50m in humanitarian aid in return. Nauru's bilateral relations with Moscow have become even stronger after Nauru has recognized Abkhazia on December 15, 2009 and South Ossetia the next day. Nauru's foreign minister Kieren Keke
Kieren Keke
Kieren Aedogan Ankwong Keke is a Nauruan politician and medical doctor. He is currently the Minister of Foreign Affairs and has previously been speaker of the Nauruan Parliament.-Background:...
stated: "I hope that other countries will follow our example and also recognize the independence of Abkhazia". The issue was dealt with in the winter session of the parliament.
Russian officials visited Nauru in March 2010 to discuss the allocation of the "huge aid grant" that Russia will be providing to the small country.