This article is from the source 'guardian' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.

You can find the current article at its original source at http://www.guardian.co.uk/world/2013/apr/18/russian-internet-social-media-network

The article has changed 6 times. There is an RSS feed of changes available.

Version 0 Version 1
Fears of Russian internet crackdown as investigators search social network HQ Fears of Russian internet crackdown as investigators search social network HQ
(6 days later)
The Russian version of Facebook has had its offices searched and its ownership structure shaken amid fears the Kremlin is looking to tighten its grip on the internet.The Russian version of Facebook has had its offices searched and its ownership structure shaken amid fears the Kremlin is looking to tighten its grip on the internet.
Investigators searched the office of VKontakte, Russia's most popular social network, as well as the home of its young founder, Pavel Durov, this week, following allegations he was involved in a traffic incident earlier this month. Investigators searched the office of VKontakte, Russia's most popular social network, as well as the home of its founder, Pavel Durov, this week, following allegations he was involved in a traffic incident earlier this month.
Amid the ongoing scandal, a fund belonging to Ilya Shcherbovich, a board member at the state-owned oil giant Rosneft, swooped in to unexpectedly buy 48% of the network on Wednesday. Amid the ongoing scandal, a fund belonging to Ilya Shcherbovich, a board member at the state-owned oil giant Rosneft, swooped in to unexpectedly buy 48% of the network on Wednesday. "Putin is now the de facto owner of VKontakte," a Russian internet insider said.
"Putin is now the de facto owner of VKontakte," a Russian internet insider said.
Kremlin fears over the internet have grown since Vladimir Putin returned to the Kremlin last year amid an unprecedented wave of protests, many of which were aided by social media.Kremlin fears over the internet have grown since Vladimir Putin returned to the Kremlin last year amid an unprecedented wave of protests, many of which were aided by social media.
The internet has flourished as a home to dissenting voices, and is as yet untouched by the Kremlin's heavy hand, which controls most print and television media either directly or though friendly firms like Gazprom. The internet has flourished as a home to dissenting voices, and is as yet untouched by the Kremlin's heavy hand, which controls most print and television media either directly or through friendly firms such as Gazprom.
A source inside VKontakte said that pressure against the site began after Durov refused to co-operate with the Federal Security Service (FSB) when Moscow erupted in protest.A source inside VKontakte said that pressure against the site began after Durov refused to co-operate with the Federal Security Service (FSB) when Moscow erupted in protest.
"A year ago, when the protests started, Durov showed he wasn't ready to close protest pages," the source said. "That's when his problems started." VKontakte said at the time it had denied an FSB request to shut several pages devoted to opposition groups."A year ago, when the protests started, Durov showed he wasn't ready to close protest pages," the source said. "That's when his problems started." VKontakte said at the time it had denied an FSB request to shut several pages devoted to opposition groups.
Durov, 28, founded VKontakte in 2006 and has quietly led it to become the most popular social networking site in Russia with around 200 million users. It has come under fire for hosting pirated copies of films and television shows, which have helped its enormous popularity inside Russia. Durov, 28, founded VKontakte in 2006 and has quietly led it to become the most popular social networking site in Russia with about 200 million users. It has come under fire for hosting pirated copies of films and television shows, which have helped its popularity inside Russia.
In early April, rumours began to appear online that Durov was involved in an incident on 5 April in St Petersburg, where VKontakte is based, when a white Mercedes refused to yield to a traffic police officer after making a wrong turn down one of the city's main streets. Dashcam footage from the police car shows a white Mercedes brushing a traffic police officer while trying to speed away. In early April, rumours began to appear online that Durov was involved in an incident on 5 April in St Petersburg, where VKontakte is based, when a white Mercedes refused to yield to a traffic police officer after making a wrong turn down one of the city's main streets. Dashcam footage from the police car shows a white Mercedes brushing a traffic police officer while trying to speed away.
Georgy Lobushkin, the company's spokesman, denied that Durov was involved in the incident and has said that the infamously private figure does not and has never owned a car.Georgy Lobushkin, the company's spokesman, denied that Durov was involved in the incident and has said that the infamously private figure does not and has never owned a car.
The rumours of Durov's involvement refused to fade, however, and this week members of the investigative committee, a body that answers directly to Putin and has become increasingly likened to a political police, searched VKontakte's St Petersburg headquarters and Durov's home. They have also called Durov in for questioning as a witness in the case.The rumours of Durov's involvement refused to fade, however, and this week members of the investigative committee, a body that answers directly to Putin and has become increasingly likened to a political police, searched VKontakte's St Petersburg headquarters and Durov's home. They have also called Durov in for questioning as a witness in the case.
The decision one day later by two VKontakte co-founders, Vyacheslav Mirilashvili and Lev Leviev, to sell their shares in the site to Shcherbovich's fund, United Capital Partners, took Durov by surprise, a source inside the company said.The decision one day later by two VKontakte co-founders, Vyacheslav Mirilashvili and Lev Leviev, to sell their shares in the site to Shcherbovich's fund, United Capital Partners, took Durov by surprise, a source inside the company said.
With a 48% share, the fund has now become the biggest shareholder in the company.With a 48% share, the fund has now become the biggest shareholder in the company.
Durov owns a 12% share of VKontakte and is chief executive. The remaining 40% is owned by Mail.ru, a Russian internet group controlled by Alisher Usmanov, a Kremlin-friendly oligarch who is Russia's richest man. Usmanov also owns a stake in Arsenal FC. Last year, Mail.ru handed Durov voting rights to its stake.Durov owns a 12% share of VKontakte and is chief executive. The remaining 40% is owned by Mail.ru, a Russian internet group controlled by Alisher Usmanov, a Kremlin-friendly oligarch who is Russia's richest man. Usmanov also owns a stake in Arsenal FC. Last year, Mail.ru handed Durov voting rights to its stake.
Yet Usmanov remains highly loyal to the Kremlin. He owns Kommersant, one of the country's most respected daily newspapers, where journalists have recently begun to complain of creeping censorship. Yet Usmanov remains loyal to the Kremlin. He owns Kommersant, one of the country's most respected daily newspapers, where journalists have recently begun to complain of creeping censorship.
"Eight-eight per cent of the network is now controlled by businessmen loyal to Putin," the internet insider said. "If they make a deal, they can easily name another general director at the next board meeting." "Eighty-eight per cent of the network is now controlled by businessmen loyal to Putin," the internet insider said. "If they make a deal, they can easily name another general director at the next board meeting."
VKontakte's spokesman refused to comment on the deal.VKontakte's spokesman refused to comment on the deal.
Writing in comments on VKontakte on Wednesday, Durov tried to calm fears that the social networking site would soon become subject to censorship.Writing in comments on VKontakte on Wednesday, Durov tried to calm fears that the social networking site would soon become subject to censorship.
"As long as I am general director, nothing in VK will change for the worse," Durov wrote. "Everything is okay. To start changing things for the worse, they have to deal with me first. That's impossible to do using legal means." "As long as I am general director, nothing in VK will change for the worse," he wrote. "Everything is OK. To start changing things for the worse, they have to deal with me first. That's impossible to do using legal means."
Unlike China, the authorities in Russia have only recently awoken to the potential of the internet. Amid a far-reaching crackdown on opposition to Putin, the Duma adopted a law last year that creates a blacklist of forbidden websites. Unlike China, the authorities in Russia have only recently awoken to the potential of the internet. Amid a far-reaching crackdown on opposition to Putin, the Duma adopted a law last year that creates a blacklist of forbidden websites. Ostensibly designed to shut down sites devoted to promoting drug use, suicide and paedophilia, it has been haphazardly applied. Critics warn it could provide a cover for widespread censorship of the internet.
Ostensibly designed to shut down sites devoted to promoting drug use, suicide and paedophilia, it has been haphazardly applied. Critics warn it could provide a cover for widespread censorship of the internet.
Some analysts said the sale of VKontakte shares could have resulted from a business dispute between Durov and his co-founders.Some analysts said the sale of VKontakte shares could have resulted from a business dispute between Durov and his co-founders.
"It looks more like a business dispute than a political affair," said Andrei Soldatov, an expert on the security service and internet in Russia. "But anyway it will affect the freedom of political debate on VKontakte.""It looks more like a business dispute than a political affair," said Andrei Soldatov, an expert on the security service and internet in Russia. "But anyway it will affect the freedom of political debate on VKontakte."
guardian.co.uk today is our daily snapshot of the top news stories, sent to your inbox at 8amguardian.co.uk today is our daily snapshot of the top news stories, sent to your inbox at 8am