Russia and NGOs - November - December 2005 

Putin Signs NGO Bill Into Law


Dec. 27: AP - Russian Parliament Approves Curb on NGOs 

Dec. 23: Russia's lower house approves NGO bill

Dec. 16: U.S. Senate passes bill on Russian NGO legislation

Dec. 14: U.S. House debates Russian NGO legislation  
            (Floor speeches by Reps. Chris Smith, Lantos, Kucinich and Cardin)

Dec. 08: U.S. House bill on Russian NGO legislation

Dec. 06: JTA - Putin: Changes coming to NGO bill
            [Read full Putin comment]

Dec. 06: AP - Russian parliament sets date for NGO bill's decisive hearing 

Dec. 06: Christian Science Monitor - Russia reins in 'foreign influence' 

Dec. 05: Interfax - Russian FM: Regulations To Give Clearer Picture of Public Opinion


Nov. 30: Helsinki Commissioners' Letter Denouncing Russian NGO Legislation

Nov. 29: JTA - Russian bill could harm Jewish organizations

Nov. 24: AP - Putin to Weigh Amendments to Law on NGOs

Nov. 16: LA Times - In Russia, Pro-Democracy Groups Hear Tick-Tick-Tick

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Associated Press - 12.27.2005

Russian Parliament Approves Curbs on NGOs

MOSCOW (AP) Russia's upper house on Tuesday overwhelmingly approved a law imposing strict curbs on non-governmental organizations, a move that critics say will set back the development of civil society.

Senators in the Federation Council voted 153-1 in favor of the Kremlim-sponsored measure, with one abstention. Since the lower house approved the bill last week, President Vladimir Putin now needs only to sign the legislation for it to become law.

The bill grew out of the Kremlin's increasing displeasure with NGOs that criticize the government, advocate democracy and promote human rights.

Such groups, many financed by Western institutions, played significant roles in the mass demonstrations that helped bring opposition leaders to power in the former Soviet republics of Georgia, Ukraine and Kyrgyzstan.


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Associated Press - 12.23.2005

Russian Parliament Approves Curbs on NGOs

MOSCOW (AP) -- Russia's lower house of parliament approved a much-criticized bill Friday that imposes strict curbs on non-governmental organizations, a measure that could threaten the survival of rights groups and others considered disloyal to the Kremlin.

The State Duma voted 357-20 in favor of the bill with seven abstentions in the third of three required readings. The legislation, which has been rushed through parliament, is expected to be approved early next week by the equally compliant upper house before being signed into law by President Vladimir Putin.

After vocal protests from Russian and foreign NGOs as well as from Western governments, Putin ordered lawmakers to water down the measure slightly, in particular dropping the requirement for foreign groups to reregister their branches in Russia as local entities, subject to much stricter controls.

That measure was included among dozens of amendments that were adopted Wednesday on the bill's second reading.

But nonprofit groups such as the country's leading human rights body, Memorial, warn that the law remains draconian and could threaten their survival.

"This will mean the destruction of civil society in Russia," Tatyana Kasatkina, executive director of the group, told The Associated Press.

Sponsors of the legislation said it was necessary to stem terrorism and extremism.

But critics say the bill has grown out of the Kremlin's increasing displeasure with NGOs that criticize the government, advocate democracy and promote human rights.

Such groups, many financed by Western institutions, played significant roles in the mass demonstrations that brought opposition leaders to power in the former Soviet republics of Georgia, Ukraine and Kyrgyzstan and sparked alarm in Moscow and other governments in the region.

The bill provides for a new agency to oversee the registration, financing and activities of Russia's hundreds of thousands of NGOs. The new agency, not the courts, would determine whether an NGO should be dissolved. It would require stringent, continual accounting before the government, which NGOs say would draw too many staff and resources away from their real work.


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Jewish Telegraphic Agency - 12.06.2005

Putin: Changes coming to NGO bill 


(JTA) -- Russia’s president promised to amend a controversial bill on nongovernmental organizations that was criticized by the international community. On Monday, Vladimir Putin told his chief of administration to prepare the necessary amendments within five days, RIA Novosti reported. Putin’s move comes after fierce criticism of a preliminary draft approved by the Russian Parliament late last month, which would ban the use of foreign funds by Russian NGOs and make it illegal for foreigners to fund any political activity in Russia. Russian Jewish groups that receive most of their funding from abroad hinted that the proposed law would not affect them directly since they’re not involved in political activism.

Read full Putin comment on bill

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Associated Press- 12.06.2005

Russian parliament sets date for NGO bill's decisive hearing

By Vladimir Isachenkov

(AP) -- Russia's lower house of parliament on Tuesday set a date for the crucial second hearing of a bill placing severe restrictions on non-governmental organizations that President Vladimir Putin ordered to modify following harsh Western criticism.

An agenda-setting council of the State Duma decided Tuesday to tentatively schedule the decisive second hearing of the bill for Dec. 16. The second hearing is the one when amendments are considered, and the third one is just a formality.

The bill, which has been approved by Russia's lower house of parliament in the first of three required readings, would require local branches of foreign NGOs to reregister as de-facto Russian entities, subject to stricter financial and legal restrictions. 

Some groups, such as Human Rights Watch and Amnesty International, have said they may have to shut down their Russian operations if the legislation becomes law.

Reacting to a wave of Western concern, Putin has sent Justice Minister Yuri Chaika to discuss the proposed bill with officials from Europe's top rights body, the Council of Europe. Many Russian NGO activists, including members of the Public Chamber, an advisory body hand-picked by the Kremlin, also criticized the bill.

Putin on Monday gave his administration five days to draft amendments to the bill taking into account concerns of Russian NGOs and advice from European Union experts.

"The main accomplishment of today's Russia is its democratic process and the civil society's achievements, and we can't afford to throw the baby out with the bath water," Putin told his Cabinet in televised remarks.

He added, however, that "the bill is necessary to protect our political system from outside interference." He said the measure would also help "protect our society, our citizens from the spread of terrorist and misanthropic ideology."

Boris Gryzlov, the speaker of the lower house, the State Duma, said Tuesday the bill would help track down how foreign donations were being spent.

"I'm concerned about money coming from abroad," Gryzlov said, according to the RIA Novosti and ITAR-Tass news agencies. "We need to make sure they are indeed spent on humanitarian and charity purposes."

Critics say the bill was another step in the Kremlin's effort to tighten control over society following the abolition of popular elections for governors in Russia's far-flung regions, effective state takeover of nationwide television and the emergence of a tame parliament packed with pro-Putin lawmakers.

The issue further strained Moscow's relations with Washington, and U.S. Undersecretary of State Nicholas Burns touched on it during a trip to Moscow last week, saying that NGOs play a "very positive role" in any society.

It comes at a delicate time as Russia is about to take over the yearlong chairmanship of the Group of Eight _ originally a club of leading Western industrial powers that admitted Russia in the 1990s _ with some critics suggesting that Moscow is not suited to such a role because of democratic backsliding.

But Russia's Foreign Minister Sergey Lavrov on Monday accused foreign-funded NGOs of distorting Russia's image. "Like in other nations, our NGOs must be financed by national sources, including government funds," he said in an article posted on the ministry's Web site.

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Christian Science Monitor - 12.06.2005

Christian Science Monitor

Russia reins in 'foreign influence' 

The legislature wants to tighten state control of 450,000 civic groups.

By Fred Weir 

MOSCOW - The headquarters for Open Russia in downtown Moscow was known as "The Citadel" for its turreted Gothic facade.

But these days a real bunker mentality prevails inside the civic education center founded by now-imprisoned oil tycoon Mikhail Khodorkovsky. Like many other Russian nonprofit groups involved with public policy issues, it faces possible closure under new legislation that goes before the Duma next week.

"I don't want to be a Cassandra, but I fear the entire nonprofit sector in Russia is facing dark times," says Irina Yasina, the center's program director. "There is spy mania in Russia, and they are specially scrutinizing any organization that has foreign funding."

All of Russia's estimated 450,000 civic groups - from community sports clubs to charities and nationwide human rights movements - will need to re-register next year with a special state agency. The sweeping amendments to Russia's law on nongovernmental organizations (NGOs), approved by a Duma majority last month, would add up to levels of state control not seen since Soviet times.

The key goal, spelled out by President Vladimir Putin last week, is to block foreign-funded NGOs from "carrying out what amounts to political activity" in Russia. "Whether these organizations want it or not, they become an instrument in the hands of foreign states that use them to achieve their own political objectives," Mr. Putin said. "This situation is unacceptable."

Russia's FSB security service chief, Nikolai Patrushev, recently blamed foreign-funded NGOs for fomenting revolution in the post-Soviet states of Georgia, Ukraine, and Kyrgyzstan. He called for a new law on NGOs, warning that "the imperfectness of [current] legislation and lack of efficient mechanisms for state oversight creates fertile ground for conducting intelligence operations under the guise of charity and other activities."

Monday, Putin said the new law would be a key step in defending Russia from "the spread of terrorist and hateful ideologies."

The law's backers argue that most countries ban foreigners from meddling in local politics, and that the rules are aimed at imposing order in Russia's NGO sector. "There is bacchanalia in the sphere of public organizations, which prevents social consolidation and will lead to the destruction of Russia," says Valery Galchenko, one of the law's authors.

$19 million for what?

Open Russia, which received $19 million from Mr. Khodorkovsky's overseas bank accounts this year, is an obvious target. "The authorities make it sound as though we're instructing people to build barricades," says Ms. Yasina. "But we are engaged with things that would not be considered partisan political activities in any developed country, such as holding classes to teach proper political debate, respect for law, civic cooperation, and tolerance."

Many NGO activists complain the Kremlin is abusing the term "political activity" to mislead the world about its intentions. "What most NGOs do isn't 'politics,' "says Alexei Simonov, president of the Glasnost Defense Foundation, a 15-year-old media watchdog group. Rather, it's about criticizing or advocating particular policies. It's about developing or defending community interests, he says.

"This new law is aimed at striking fear into the NGO community, and changing the relations between state and society in ways I can only imagine in terms of our Soviet past," Mr. Simonov says.

If the law passes, global NGOs will be required to close their local branches and re-register as Russian organizations.

"This option does not suit us, because we have a very international team," says Alexander Petrov, Russian deputy director of the New York-based Human Rights Watch. "A decade ago it would have been hard to imagine what is happening now. It would have looked like an anti-utopia," he says.

Expert think tanks could also be singled out under the new law. "It's hardly surprising that Russian foreign policy is misinterpreted abroad," deputy foreign minister Alexander Yakovenko told a conference last week. "This happens because the Russian and Western media cite the opinions of NGOs that are heavily bankrolled with foreign capital."

Duma deputy Alexei Ostrovsky, a co-author of the law, estimates up to a quarter of Russian NGOs receive money from abroad. These include hundreds of groups whose activities often entail criticism of state policy, such as environmentalists, human-rights monitors, consumer advocates, anticonscription activists, and many others.

Some foreign funding comes from government sources, such as USAID or the European Union's TACIS, but much originates with private donors such as the Ford or MacArthur Foundations. Russian NGO workers say they accept foreign money because few local businesses are willing to donate.

One wealthy Russian who did contribute generously to civil society groups - Khodorkovsky - was singled out for prosecution, many experts say, because his "political activities" angered the Kremlin.

New Russian purse strings

Last month the Duma amended the 2006 state budget to include 500 million rubles (about $17 million) for "developing democracy in Russia and abroad," a step many NGOs have welcomed.

But Simonov argues that it's a sign the Kremlin aims to replace independent civil society with tame NGOs.

"Whenever I apply for foreign grants, I propose what I'm going to do and they decide whether to fund it," he says. "With the Russian government, they're always proposing what I should do with any funds they give me."

Under existing laws, NGOs already report on their sources of funding to tax authorities. The new rules would require them to register with a special state agency, which will scrutinize each NGO's accounts and activities before deciding whether to close it down or not. Empowering bureaucrats

Ella Pamfilova, who heads the Kremlin's council on developing civil society, says she fears the law will hand too much power to bureaucrats.

"I don't see the need for such a controversial, raw, bribe-inducing bill that gives government officials a lot of leeway for lawlessness," she says. "When any official gets criticized, he'll now have 10 times more ways to shut down a public organization by accusing it of being engaged in political activities."

Even some groups whose focus is far from politics say that they are worried.

"We already face all kinds of difficulties and [the bureaucratic hurdles] involved in re-registering could lead to serious difficulties," says Yury Kapsrov, president of the Russian Society of New Music, an association of musicians. "There already isn't any state funding for artists' unions. If they make things tougher, it could lead to collapse."

In response to critics, Putin said Monday that the bill should be toned down. His administration would send amendments to the Duma in the next five days.

"The main achievements of modern Russia are the democratic process and civil society, and we must make sure that we do not, as they say, throw the baby out with the bath water," said Putin.

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Interfax - 12.05.2005

Russian FM: NGO Regulations To Give Clearer Picture of Public Opinion

MOSCOW (Interfax) - Russia wants to regulate the activities of non-governmental organizations in order to gain an objective impression of public opinion, Foreign Minister Sergei Lavrov said in an article entitled "Foreign Political Results 2005: Thoughts and Conclusions" posted on the ministry's website on Monday.

"It is a matter of giving a clearer picture of Russian public opinion to our foreign partners. This is one of the reasons behind our wish to regulate non-governmental organizations in conformity with international practice," he said.

"Because of the insufficient development of non-governmental organizations, the opinions of the Russian offices of foreign political research centers and foundations are, from time to time, passed off as being the opinions of the Russian public," he said. 

"The foreign media quotes these organizations extensively and this creates an extremely distorted picture, which is not in anyone's interests, unless one wants to fall victim of one's own propaganda and give a wrong idea about the correlation between the country's foreign policy and the public's feelings," Lavrov said.

"There is only one way out, to my mind. Our non-governmental organizations should be funded with national money, including from the budget. We should create a level playing field for competition," he said.


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U.S. Department of State- 12.02.2005

U.S. Department of State

Remarks to the Press by Under Secretary for Political Affairs R. Nicholas Burns and Russian Deputy Foreign Minister Sergey Kislyak Osobnyak

Remarks following Meetings of the U.S.-Russia Counterterrorism Working Group [excerpted]

QUESTION: Mr. Burns, Reuters News Agency. Did you discuss, as was expected in the press, the new Russian law or bill on NGOs? And did America raise any problems with that?

UNDER SECRETARY BURNS: I would be happy to say a few words and perhaps Ambassador Burns would like to as well. I would just say it was not part of the formal agenda of the Counterterrorism Working Group. This group works on a very specific set of issues having to do with the agenda that the Deputy Foreign Minister and I have described. So it's not part of the formal agenda. I will say that I have, since arriving in Moscow, of course I had a chance to meet with some of the NGOs and I'll be having discussions with other officials of Russian government.

Let me just say that obviously we are aware of the debate here. But I do think it's best that any specific comments be left for a private diplomatic exchange. That's the best way for friends to discuss matters like this. In our case, some of the NGOs in question are American NGOs who have been working here as friends of Russia, and of course we think that, in our own experience in the United States, NGOs play a very positive role in our country, as they do in many parts of the world. And so we hope very much that both here and elsewhere NGOs can continue to contribute to society. But I really think it's best for any specific comments to be left to our private exchanges.

AMBASSADOR WILLIAM BURNS: I would add only that in Russia I think it's obvious that nongovernmental organizations make some very valuable contributions across a range of areas, not just in the development of modern economic and political institutions, but education, and in health and in many areas in which Russians are trying to create more opportunities and improve their own society. So what we hope, as Nick said, is that the outcome of the debate that is going on amongst Russians about this new draft legislation will be something that facilitates the role of NGOs, enhances their ability to contribute in Russian society, not complicate it.

DEPUTY FOREIGN MINISTER KISLYAK: I would like to say a few words. While fully agreeing with Nick that the topic of NGOs is not the topic of our consultations and we dealt with other issues, as for Russian legislation in the field of NGOs, this is a process that develops within the framework of the Russian Constitution and the development of civil society. I am absolutely confident that as our parliament elaborates legislation, based on our laws, it will create such conditions for civil society that will help it contribute to the development of our country in a calm, confident, predictable and transparent manner. I view this process with big optimism and, frankly speaking, do not quite understand all this fuss. These are normal political debates in our country among Russian political forces. The outcome of these debates will mirror the opinion of the entire range of political parties in our country. 

Thank you.


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Jewish Telegraphic Agency - 11.29.2005

Russian bill on nonprofit groups could harm Jewish organizations

By Lev Krichevsky

MOSCOW (JTA) -- Some Russian Jewish activists are concerned that a new bill on nonprofit organizations may harm their operations. 

But larger Jewish nonprofits working in Russia remain calm about the legislation, which could limit the ability of nongovernmental organizations, or NGOs, to accept foreign funds. 

The bill received preliminary approval in State Duma, the lower house of the Russian Parliament, last week. 

Much of the criticism comes from the human rights community, which blames the Kremlin for pushing amendments to the bill through the State Duma. The amendments are widely seen as targeting human rights organizations that often criticize federal and local authorities. 

"The authorities are often irritated by the criticism that is coming from NGOs," said Alexander Brod, head of the Moscow Bureau on Human Rights, a group that monitors anti-Semitism and xenophobia in Russia. "The new law will help the authorities to use registering organs when they want to shut down the activities of the NGOs that criticize the authorities." 

The bill would place nonprofits under stricter state control and could shut foreign nonprofits currently operating in Russia or indigenous nonprofits that use foreign funds. The State Duma, Russia's lower house of Parliament, approved it by a 370-18 vote Nov. 23. 

In its current version, the bill requires nonprofits to re-register with the Justice Ministry and empowers authorities to check that nonprofits do not use foreign grants to finance political activities. 

Some foreign nonprofits -- especially those that promote a civil society in Russia -- have warned that the bill would shut them down. 

The bill must pass two more readings in the State Duma -- expected by the end of the year -- before going to the upper house of Parliament, a body controlled by supporters of President Vladimir Putin. After that step, the bill would go to Putin to be signed into law. Some have speculated that Putin could veto the legislation to raise his standing in the eyes of the international community. 

On Nov. 24, Putin responded to worries of a looming crackdown on nonprofits by saying that foreign funding of any political activity in Russia must come under state control. But he stressed that the legislation must not damage civil society. 

Backers of the bill say it's aimed at fighting extremism and money-laundering by nonprofits, and deny that it seeks to clamp down on the groups. 

But critics insist that the bill was proposed by a Putin administration seeking to minimize ways for foreign money to finance political activities in Russia, a sensitive issue for the Kremlin after three former Soviet republics -- Georgia, Ukraine and Kyrgyzstan -- changed their leadership as a result of mass public protests using pro-democracy slogans. 

Brod said he wasn't ruling out the possibility that officials may create an unofficial blacklist of nonprofits -- especially from the human rights sector -- and deny them re-registration. His own group may be at risk, he said, since it receives most of its funding from foreign sources, particularly the European Commission. 

"They may reject the financial paperwork we provide during re-registration on some formal grounds and eventually close us down, along with dozens of other groups," he said. 

Most Russian nonprofits that provide services to the Jewish community are not involved in direct political or human rights activism. But the lion's share of current funding for Jewish causes in Russia comes from overseas charities. 

Does the proposed legislation endanger these groups? For two of the major Jewish organizations operating in Russia, the tentative answer would appear to be no. 

The Federation of Jewish Communities of Russia, whose American fund-raising branch recently made it onto a list of the 400 largest philanthropies in the United States, operates in Russia as an indigenous nonprofit organization. 

For its part, the American Jewish Joint Distribution Committee uses different statuses for its work in Russia, including as a representative office of the American JDC. Still, its financial activities in Russia usually are managed by another Russian nonprofit that uses the JDC's name but is formally unrelated to its overseas parent group. 

None of the major Jewish groups that work with foreign donations -- including the local branches of the JDC and the Jewish Agency for Israel -- agreed to comment publicly on the new law. 

JAFI has long operated in Russia as a local nonprofit called the Jewish Agency in Russia, which at least on paper is not linked to the Israeli-based organization. 

Officials at some smaller Jewish nonprofits say they're worried about the bill. 

"Our organization was founded by foreign founders. How should we operate now?" asked Svetlana Muterperel, general manager of an independent, Moscow-based charity that spends much of its funds on Jewish causes. 

"I'm sure the law will multiply the difficulties of the NGOs here," said Muterperel, who asked that her group's name not be used. "The Russian legislation provides no financial incentives for charity giving. If this law is enacted, many of us will find it even more difficult to operate."


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Associated Press - 11.24.2005

Putin to Weigh Amendments to Law on NGOs 

By Maria Danilova

MOSCOW (AP) - President Vladimir Putin said Thursday he would consider making amendments to controversial legislation aimed at clamping down on foreign-funded nongovernment organizations in Russia.

Putin, however, warned that his administration would pay close attention to foreign governments funding NGOs, hinting that some groups were being used to influence Russian political life from abroad.

The announcement came as rights groups denounced Wednesday's decision by Russian lawmakers to give preliminary backing to a bill that would severely restrict all NGOs and foreign-funded groups in particular.

Supporters of the bill say the measure will make the NGOs' work more transparent. But critics warned it would be another step in cementing the Kremlin's control of Russian society.

"I believe the continued financing of political life in Russia from abroad must be within the government's sight, especially if this financing from abroad is carried out through governments of foreign countries," Putin said in televised remarks.

"Organizations functioning in our country and involved in political activity are basically being used as an instrument of foreign policy of other states," he said.

At the same time, Putin acknowledged that "when solving these kind of issues, civil society institutions must not suffer."

He said he would consult with parliament leaders "so that no steps in this sphere would inflict damage on civil society in Russia," the Interfax news agency reported.

Putin's remarks at a meeting shown on state TV with Ella Pamfilova, head of the presidential human rights commission, appeared to be an effort to appease opponents of the heavily criticized bill.

The human rights official warned the president that the measure would "severely toughen" the rules governing NGOs and "and as a result the activity of the majority of our organizations will be paralyzed for a long a period and a fair share of them may disappear altogether."

The bill requires local branches of foreign NGOs to reregister as de-facto domestic entities and thus be subject to stricter financial and legal control. The measure also gives Russian officials broader oversight over the activities of all NGOs and enables Russian courts to close them down, if the groups are found to be involved in extremist or unconstitutional activity.

Foreign-funded groups - which often criticize the government on human rights and other issues - say the bill could effectively terminate their Russian operations if it is enacted.

The bill, which was approved by a 370-18 margin in the lower house of parliament on Wednesday, must still go through two more readings in the State Duma, win approval in the upper house and then be signed into law by the president.

The Kremlin has shown increasing displeasure with nonprofit groups that criticize the government and advocate democracy. Such groups played significant roles in the mass demonstrations that brought opposition leaders to power in the former Soviet republics of Georgia, Ukraine and Kyrgyzstan.

Putin told human rights experts at a Kremlin meeting this summer that Russia would not allow foreign organizations to finance political activities. In May, the head of the Federal Security Service, the main successor agency to the KGB, accused U.S. and other foreign intelligence services of using NGOs to spy on Russia and foment upheaval in ex-Soviet republics.

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Los Angeles Times - 11.19.2005

Los Angeles Times

In Russia, Pro-Democracy Groups Hear Tick-Tick-Tick

By Kim Murphy, Times Staff Writer

MOSCOW — Employees of Open Russia, the nonprofit, pro-democracy charitable foundation established by jailed oil billionaire Mikhail Khodorkovsky, came to work one morning in October to find a police bus parked outside, along with two minivans marked "Prosecutor General's Office."

A dozen investigators swarmed out of the buses and proceeded to seal off the building. Authorities said they were looking for evidence of money laundering. But foundation directors came to believe they were being targeted for something else: promoting an independent electorate and a free press.

The detectives left 10 hours later, loaded with all the data from the foundation's computers and five bags of documents.

But there was little new evidence to find. Open Russia, one of the instruments of Khodorkovsky's campaign to end government repression, already had been the subject of 21 different government examinations in the last two years.

"Tax inspections. Ministry of Justice inspections. Social Security Fund inspections. Labor inspections. Anybody who can control anybody was here to control us," said program director Irina Yasina.

Then the government brought out the big guns. Russia's parliament on Wednesday is scheduled to consider a bill that would dramatically increase government supervision over an estimated 400,000 foundations and impose new restrictions that could put Open Russia and hundreds of other groups out of business.

Many analysts say the bill is a cornerstone in the Kremlin's move to control virtually all levels of public discourse. In what many see as a step back toward the Soviet era, President Vladimir V. Putin has moved to centralize his authority over parliament, the media, courts and regional governments. The proposed legislation would add to the list one of the last independent sectors in public life — civil institutions.

Its chief target, analysts said, is nongovernmental organizations funded by the West that promote democracy, and that the Kremlin perceives as encouraging an Orange Revolution-style uprising, like the kind that toppled the governments of neighboring Ukraine and Georgia.

Already, millions of dollars in U.S. Agency for International Development grants earmarked for democracy and good-government foundations have been held up under separate regulations governing tax exemptions.

In September, the former Moscow director of the U.S. National Democratic Institute was blocked from entering the country. She was admitted only after the U.S. Embassy intervened.

"The new draft law on NGOs is targeted at what is perceived to be 'revolutionary activity,' or the alleged role of foreign organizations in instigating public protests and popular revolutions," said Yuri Dzhibladze, president of the Moscow-based Center for the Development of Democracy and Human Rights, which receives about a third of its funding from USAID and the European Union.

Analysts said international organizations as diverse as Human Rights Watch, the National Democratic Institute, and anti-AIDS and environmental groups could in effect be prevented from operating in Russia.

"Under this law it would be very questionable whether we would be able to register our office in any form," said Diederik Lohman, senior researcher for the New York-based Human Rights Watch.

Outside Russia, the legislation is considered by many to be a retreat into isolationism at a time when Russia is scheduled to take over chairmanship of the Group of 8 industrialized nations.

"It raises an almost unthinkable prospect — that the president of Russia might serve as chairman of the G-8 at the same time that laws come into force in this country to choke off contacts with global society," former Sen. John Edwards (D-N.C.) and former Housing and Development Secretary Jack Kemp, who are leading a bipartisan task force on U.S.-Russian policy for the Council on Foreign Relations, said in a letter this week to President Bush.

But sponsoring legislators said the bill was aimed at businesses trying to launder profits, extremist groups and foreigners seeking to destabilize the political situation.

The legislation would allow the government, for example, to restrict the activities of a foreign environmental group working near secret Russian military installations, said co-sponsor Alexander Chuyev, deputy chairman of the parliamentary Committee for Nongovernment and Religious Organizations.

"I would not be surprised if a majority of employees of these organizations was working for the interests of other countries," Chuyev said.

In addition to requiring registration and oversight of all NGOs, the bill would prohibit foreigners without residency permits from working at NGOs and prevent foreign groups from operating in Russia unless they could reinvent themselves as local organizations.

Open Russia could be closed under provisions prohibiting convicts and people suspected of money laundering from founding NGOs: Khodorkovsky was convicted this year of fraud and tax evasion, and is also the subject of a separate $7-billion money laundering investigation.

But Open Russia leaders believe the government's interest in the organization has more to do with the group's work promoting a democratic society. "We are trying to awaken in people a desire to learn, to always know an alternative point of view," said Yasina, the Open Russia chief.

The human rights group Memorial, which has sharply criticized abuses by law enforcement and the military, also has been targeted. Russian officials demanded an exhaustive series of tax inspections. "They stayed on endlessly, were presented with everything they asked for, then returned for more," said Oleg Orlov, Memorial's chairman.

Now, the organization has been told to expect a major claim for allegedly unpaid taxes.

Officials have accused Western-funded NGOs of helping to mobilize the student groups and activists who have toppled at least three post-Soviet governments in the last three years.

"I don't think anyone's trying to promote an Orange Revolution in Russia," said Catherine Osgood of the U.S.-based Freedom House, which funds internships for Russian students in European think tanks and NGOs. "I think the primary goal of foreign NGOs is to help strengthen Russian civil society."

In an odd twist, the ruling United Russia party on Friday pushed through a $17.4-million appropriation to fund NGOs promoting "civil society and the development of democracy" in nations outside Russia.

"In a number of states, human rights are violated … including violations during so-called Orange Revolutions, and Russia intends to pursue a focused policy on these issues," Vladimir Pekhtin, deputy head of the ruling party in parliament, said in an interview.

President Bush raised the NGO issue in a meeting with Putin on Friday in South Korea, but national security advisor Stephen Hadley later declined to elaborate. "It's a confidential discussion between two leaders, and sometimes there are issues which can more productively be discussed outside of public view," Hadley said.

Members of NGOs have urged the U.S. to take a strong stand.

"Maybe the goal of democracy can be put on a shelf, given all the other burning issues the two countries have to discuss," said Andrei Kortunov, president of the New Eurasia Foundation. "Or maybe they believe this low-key approach is best. As someone told me, no one has been put in jail. Nothing apocalyptic has happened yet. There's no reason to bring in the heavy artillery yet."

Times staff writers Sergei L. Loiko and Natasha Yefimova in Moscow and Peter Wallsten in Pusan, South Korea, contributed to this report.


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