Media baron's arrest mars Putin image

By Vladimir Radyuhin

MOSCOW, JUNE 14. A leading Russian businessman and owner of the only independent media empire has been arrested in Moscow triggering the first serious political scandal in the month-old presidency of Mr. Vladimir Putin.

Mr. Vladimir Gusinsky, founder of the Media-MOST holding, was detained on Tuesday for questioning. The Prosecutor General's Office said Mr. Gusinsky was being accused of having swindled the State out of at least $10 millions. But politicians and analysts say the arrest signalled an attempt by the Kremlin to gag independent media.

Mr. Gusinsky's media, which includes the popular NTV television, a radio, a daily newspaper and a couple of magazines, has been critical of Russia's war in Chechnya and outspoken about Kremlin corruption. Mr. Putin was reported to have been particularly enraged by Mr. Gusinsky's refusal to stop lampooning him in a popular political puppet show on NTV television.

Last month, masked security officers raided several Media-MOST offices in Moscow in search of evidence of eavesdropping by the holding on prominent political and business figures. A Moscow district court later ruled that the raids had been illegally carried out.

Mr. Putin, who is on a weeklong tour of Spain and Germany, told reporters in Madrid that he was not aware of the arrest and promised to look into the matter upon his return to Moscow. He did not hide his dislike of Mr. Gusinsky, though, accusing him of borrowing $1.3 billions from Russian and foreign creditors and refusing to return the loans.

The arrest has provoked a shock and uproar in Russia, with businessmen and politicians slamming it as an onslaught on the freedom of the press.

``Till yesterday we thought we lived in a democratic country, today we have serious doubts about it,'' leading businessmen said in a joint statement approved after an urgently called meeting on Wednesday.

Many politicians said the media magnate's arrest was a serious blow at Mr. Putin, dealt by opponents of the President's attempts to strengthen the power of the centre and reign in regional governors.

The bills, which would give the President power to sack elected regional bosses and deprive them of immunity to prosecution they enjoy as members of the Upper House of Parliament, have been sharply criticised by Mr. Boris Berezovsky, a business tycoon closely linked to the head of the presidential administration, Mr. Alexander Voloshin. Both men belong to the so-called `Kremlin Family,' which enjoyed enormous power during the rule of Mr. Boris Yeltsin, and has largely retained its positions under his successor, Mr. Putin.

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Section  : International
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