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Oligarch Vladimir Yevtushenkov's arrest 'could hurt Russia' Oligarch Vladimir Yevtushenkov's arrest 'could hurt Russia'
(about 11 hours later)
The arrest of Russian billionaire Vladimir Yevtushenkov on money laundering charges has hurt Russia's business climate and could spur capital flight, according to the country's economy minister. The arrest of Russian billionaire Vladimir Yevtushenkov, pictured, on money laundering charges has hurt Russia's business climate and could spur capital flight, according to the country's economic development minister.
In the first critical comments by a Russian official since Yevtushenkov, chairman of the Sistema telecoms-to-oil conglomerate, was placed under house arrest on Tuesday, Alexei Ulyukayev said clarification on the situation was needed. In the first critical comments by a Russian official since Yevtushenkov, chairman of the Sistema telecoms and oil conglomerate, was placed under house arrest by Russian officials on Tuesday, Alexei Ulyukayev said clarification of the situation was needed.
"This is certainly reflected in the investment climate. It is clear that the suspicion that there is some economic motive behind this complicates investors' decision-making," he told reporters on Thursday, adding that the situation could spur capital flight. "This is certainly reflected in the investment climate. It is clear that the suspicion that there is some economic motive behind this complicates investors' decision-making," he said on Thursday, adding that the situation could spur capital flight. "We have a [growth] forecast for -2.4% this year for investment. However, this is without a doubt under threat and here we have been waiting for some kind of clarification of the situation."
"We have a [growth] forecast for -2.4% this year for investment, however this is without a doubt under threat and here we have been waiting for some kind of clarification of the situation." Analysts say Yevtushenkov's arrest over a 2009 deal in which he acquired a stake in oil producer Bashneft may be aimed at putting pressure on the businessman to sell the shares to state oil company Rosneft, led by an ally of President Vladimir Putin. Rosneft has denied the allegations, levied by fallen oligarch Mikhail Khodorkovsky, and labelled them absurd.
Analysts say Yevtushenkov's arrest over a 2009 deal in which he acquired a stake in oil producer Bashneft may be aimed at putting pressure on the businessman to sell the shares to major state oil company Rosneft, led by an ally of President Vladimir Putin. Rosneft has denied the allegations, levied by fallen oligarch Mikhail Khodorkovsky, and labelled them "absurd".
The arrest prompted fears that the practice of state intervention in business was on the rise in Russia and that even businesses loyal to the Kremlin could be targeted.The arrest prompted fears that the practice of state intervention in business was on the rise in Russia and that even businesses loyal to the Kremlin could be targeted.
Shares fell on the Moscow stockmarket and Yevtushenkov's Sistema lost a third of its value on news of the arrest, striking the stock market and investment climate at a time when the already-weak economy is being dragged lower by western sanctions over Ukraine. Shares fell on the Moscow stockmarket and Yevtushenkov's Sistema lost a third of its value on news of the arrest, affecting the stock market and investment climate at a time when the already weak economy is being hit by western sanctions over Ukraine.
Ulyukayev also said Moscow had not yet prepared retaliatory measures to western sanctions over the Ukraine conflict. Ulyukayev also said Moscow had not yet prepared retaliatory measures to western sanctions over the Ukraine conflict. "There are no prepared decisions. In this situation it would not be productive because any action should be based on the interests of our consumers, and I do not see any clear way of doing this."
"There are no prepared decisions. In this situation it would not be productive because any action should be based on the interests of our consumers, and I do not see any clear way of doing this."