Bloomberg News

Russian Investigators Seek Ousted Mayor in Bank of Moscow Probe

October 25, 2011

Oct. 25 (Bloomberg) -- Russian investigators said they summoned deposed Moscow Mayor Yury Luzhkov for questioning this week as part of a fraud probe related to the sale of a stake in Bank of Moscow.

Luzhkov, fired by President Dmitry Medvedev last year after almost two decades in power, is a witness in a case involving the city government’s purchase of a stake in Bank of Moscow in 2009, a spokesman for Interior Ministry’s investigative department said by phone today, declining to elaborate or give his name, in line with department policy.

Investigators said in a statement said Feb. 17 that a property company called Premier Estate colluded with Bank of Moscow employees to fraudulently receive a loan of about 13 billion rubles that ended up in the personal bank account of Luzhkov’s wife, Yelena Baturina. The company had no intention of repaying the loan and gave false information about the supposed collateral to receive it, investigators said then, without elaborating. The couple has denied wrongdoing.

--Editor: Brad Cook

To contact the reporter on this story: Lyubov Pronina in Moscow at lpronina@bloomberg.net

To contact the editors responsible for this story: Balazs Penz at bpenz@bloomberg.net


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