Possible charges over his activities at Aeroflot

Published: 5/23/2000

A recent article in Moscow daily Segodnya has refocused public attention on the ongoing investigation of Boris Berezovsky and his activities at Aeroflot in the latter part of the nineties. According to the newspaper, it appears that the government is buying itself some insurance by making sure that it has the oligarch under pressure. The investigation is reported by Segodnya to be in the final stages of providing sufficient evidence, with the cooperation of the Swiss authorities, to bring criminal charges involving the diversion of $400m from the accounts of Aeroflot through the Berezovsky-controlled Swiss entities Andawa and Forus, which acted as agent for Aeroflot's overseas revenue collection. Rumours in Moscow suggest that charges could be brought within a week, although the recent confirmation of the acting Prosecutor General by the Presidential Chief of Staff Voloshin, a figure considered more favourably inclined towards Berezovsky, suggests that this may be less likely than a few weeks ago. Even if Voloshin, as is rumoured, has distanced himself from Berezovsky, it seems unlikely that the administration would seek to bring such a powerful figure to heel so early in its term. According to Alexei Zabotkine of Moscow investment bank UFG, the moves appear more designed 'to keep Berezovsky sidelined from mainstream politics'. This is an important move on the part of the government, who have stated its desire to be seen as keeping the oligarchs at 'equal distance', given Berezovsky's control of major media channels, such as Kommersant and television station OTV. A similar motive was ascribed to the recent raids on the Media-MOST offices of Gushinsky by the tax police. For Aeroflot, it would seem unlikely that Berezovsky would press home any tactical advantage he may have gained recently through the board elections at the airline. Retaking control of Aeroflot, where the government holds a 52% stake and wishes to sell it to the international investment community, when evidence suggests you embezzled $400m seems, even in Russia, to stretch credibility.

Article ID: 1808