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Kremlin May Target
Abramovich Oil Deal

By Julius Strauss
The Telegraph - UK
11-6-3


There were growing signals in Moscow last night that Roman Abramovich, the owner of Chelsea Football Club, is to be the next target in a Kremlin crackdown against Russia's billionaires.
 
State prosecutors confirmed that they had received an official request to investigate Mr Abramovich's purchase of the oil company Sibneft. The call came from Vladimir Yudin, the Kremlin-linked MP whose demands led to the investigation and subsequent arrest of Mikhail Khodorkovsky, Russia's richest man by machinegun-carrying special agents.
 
Mr Khodorkovsky, then the head of Yukos, the world's fourth largest oil company, has been held in an overcrowded jail in eastern Moscow for 12 days on charges that he cheated the state of £600 million in taxes.
 
President Vladimir Putin, who is due to attend a European Union summit in Rome today, has assured investors that he will not try to reverse the privatisations of the Boris Yeltsin era.
 
But it is widely believed that he is using the legal system to pursue the billionaires and crush their political ambitions. Newspapers are filled with suggestions that the Kremlin is poised to step up its campaign against the super-rich industrialists, who won their huge wealth in controversial deals overseen by Mr Yeltsin when he was president.
 
Mr Yudin, the MP behind the Sibneft investigation, is widely considered to be a stalking horse for a coterie of hardliners, known as the siloviki or "men of power". Most are former KGB men now working in the Kremlin and are believed to have the ear of the president, also a former KGB agent.
 
Mr Abramovich snapped up Sibneft, which now generates hundreds of millions of pounds a year, for around £80 million.
 
Under Russian law, the prosecutor's office has three months to decide whether to launch an investigation. If Mr Abramovich is formally charged, he may request political asylum in Britain, following the example of his former mentor Boris Berezovsky, another Russian oligarch.
 
Mr Berezovsky, who is wanted by Russian prosecutors on charges of fraud and embezzlement, writes in The Telegraph today that political parties in Russia should boycott next month's parliamentary elections in protest at what he calls Mr Putin's "creeping anti-constitutional coup".
 
Mr Berezovsky had his Russian television interests effectively nationalised and has been granted political asylum in Britain, which has shielded him from Moscow's attempts to extradite him.
 
© Copyright of Telegraph Group Limited 2003.
 
http://www.telegraph.co.uk/news/main.jhtml?xml=/news/2003/11/06/wabr
am06.xml&sSheet=/news/2003/11/06/ixnewstop.html
 

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