Picasso Work, Berezovsky Papers Found in Moscow Gambling Raid

Picasso Work, Berezovsky Papers Found in Moscow Gambling Raid

Bloomberg

The Federal Security Service said it found artworks by Pablo Picasso and Rembrandt and documents for offshore companies belonging to self-exiled investor Boris Berezovsky in a raid on an illegal gambling operation in Moscow.

The paintings, worth more than $5 million, and documents were found in the main office of a building in central Moscow that was once used by Berezovsky, the FSB said on its web site.

The crime syndicate that operated out of a building on Novokuznetskaya Ulitsa was able to earns as much as $10 million a month in part because of the "support" it received from senior law enforcement officials in the Moscow region, including a first deputy prosecutor, the FSB said. The building also houses the Triumph art gallery.

The Berezovsky documents relate to properties held by the businessman and his family outside of Russia, the service said. Berezovsky, who received political asylum in Britain after fleeing Russia in 2001, has been sentenced in absentia to prison terms for embezzlement. Berezovsky couldn't be reached for comment immediately when Bloomberg called his mobile phone.

Mayor Sergei Sobyanin, Prime Minister Vladimir Putin's former chief of staff, vowed to create special units to raid illegal gambling operations "24 hours a day" after President Dmitry Medvedev fired his predecessor, Yury Luzhkov, in September after 18 years in power.

As president in 2006, Putin called for casinos to be shut to reduce addiction and clamp down on organized crime. He set up four special zones for gambling in the far reaches of the country. Medvedev has since taken the lead in the campaign, likening gambling addiction to a public health hazard.

Russia had 3 million gambling addicts, or 2.1 percent of the population, according to a 2008 estimate by NarcoDen, a Moscow-based rehabilitation specialist.

Putin built $1bn palace with bribes, claims tycoon

By Andrew Osborn in Moscow

Tuesday February 15 2011

RUSSIA'S Vladimir Putin has had a $1bn (€700m) Italianate palace built for himself near a Black Sea resort with the proceeds of "corruption, bribery and theft", a Russian businessman has alleged.

The claim, in a letter to Russian President Dmitry Medvedev, was reinforced yesterday after the 'Novaya Gazeta' newspaper obtained what it said was an authenticated copy of the original contract for the palace, signed in 2005 by Vladimir Kozhin, the Russian presidential property manager.

Mr Putin, now prime minister, was president at the time.

Set in 74 hectares near the coast with its own vineyard, the palace is reported to have its own helipad. It also features an indoor cinema, a summer amphitheatre, a casino, swimming pools and a gym.

Sergei Kolesnikov, the businessman who claims the palace was Mr Putin's, has likened the structure to one built for Russia's tsars outside St Petersburg.

He said that Mr Putin had personally approved the design and materials and he called on Mr Medvedev to investigate.

"A palace is being built on the Black Sea coast for the personal use of the Russian prime minister," Mr Kolesnikov wrote in his original letter.

"As things stand, the cost of the palace is $1bn. The funds were mostly raised through a combination of corruption, bribery and theft," he said.

It was in Mr Medvedev's powers, he added, to show ordinary Russians that everyone was equal before the law, including Mr Putin. Mr Putin's spokesman has dismissed the allegation out of hand, as has Mr Kozhin. Mr Medvedev has not responded to the allegations either.

But Mr Kolesnikov, who said he was involved in the project until 2009 -- when he was removed for raising concerns about corruption -- is sticking to his story and pictures have appeared on a Russian whistle-blowing website.

Mr Putin may contest a presidential election due next year. Supporters believe the claim about the palace may be part of a dirty tricks campaign against him. (© Daily Telegraph, London)

- Andrew Osborn in Moscow

National Economic Trends

http://www.bne.eu/dispatch_text14235

VTB Capital

The RUB remained on a gradual appreciation trend on Monday with USD/RUB rate sliding 5 kopeks to 29.27 while the RUB/basket lost 13 kopeks to close at 33.85, the lowest level since end of May 2010. The current RUB/basket range (33.60-34.10) envisages daily CBR target interventions at USD 150-200mn, we estimate. Local money market rates (2.5-3.0% overnight) indicate favourable liquidity conditions with no sign of any material uptick on the back of the approaching February tax period. After last week's sharp downward move, NDF/IRS rates stayed broadly unchanged on Monday.

February 15, 2011 09:20

Banks have 482.0 bln rbs on CBR correspondent accounts on February 15.

MOSCOW. February 15 (Interfax) - Russian banks have 482.0 billion rubles on correspondent accounts in the Central Bank as of February 15 including 316.8 billion rubles for Moscow banks

The balance on February 14 was 393.7 billion rubles and 233.2 billion rubles, respectively.

Banks had 1010.6 billion rubles on deposit accounts in the Central Bank on February 15 against 1131.9 billion rubles on previous day.

Fruit and veg prices growing again in Russia

Russian fruit and vegetable index of Fruit-Inform shows that last week the cost of Russian consumers' fruit and vegetable basket grew by 3.0%. In such a way, fruit and vegetable price decreasing trends observing in Russia during last weeks were put to an end.

At the same time, we should note that 2 of 3 groups of products kept on decreasing in price: fruits and traditional vegetables for storage. However, decrease of their prices by 1.4% and 0.7% respectively did not manage to compensate 23% growth of the cost of greenhouse vegetables last week. In such a way, this group of produce was the very reason to lead to growth of the cost of fruit and vegetable basket.

Besides sharp increase of prices for greenhouse vegetables, last week the price surge was registered for oranges, while mandarins sharply decreased in price. Apples became slightly cheaper due to increase of supplies from Poland. Carrots and cabbages decreased in price too. As to bananas and lemons, they became more expensive.

Decrease of borsch vegetable (onion, cabbage, beet, carrot) prices in Russia simultaneously with increase of them in Ukraine led to slightly less activity in Ukrainian exports of these categories to the Russian Federation. However, supplies of carrots and beets, as well as potatoes partially are as before possible.

You have an excellent opportunity to get acquainted with Ukrainian suppliers of potatoes, onions, cabbages, beets, and carrots during the third international conference “Potato and Vegetables of Ukraine-2011”.

This event is to take place at Shuvar wholesale market, Lvov, Ukraine, February 24-25, 2011. On-line registration is available through this link.