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Financial Times (UK), November 1, 2003

Public warms to tough stance

By Andrew Jack and Arkady Ostrovsky

Most ordinary Russians applauded President Vladimir Putin's tough action against Mikhail Khodorkovsky, the head of Yukos, but the media and political elite were more critical of the authority's actions.

The rating of United Russia, a pro-Kremlin party, has increased by 4 per cent in the past two weeks. "He [Khodorkovsky] deserves everything he has got. Why should he have $8bn and the rest of us nothing," said Dmitry, a driving instructor in Moscow.

However, the liberal elites have been disturbed by the chilling crackdown on Yukos and its chief which evoked painful and still fresh memories of political repressions.

Kommersant and Nezavisimaya Gazeta, two newspapers owned by the exiled business tycoon Boris Berezovsky, a strong critic of the Kremlin, maintained a tough line, with the former stressing the sharp fall in the share price of Yukos following the freezing of a 44 per cent stake.

The front page of the latter carried a story entitled "Chubais's day", reflecting actions against Anatoly Chubais, the head of UES, the electricity monopoly, and a leader of the Union of Right Forces party, who has been one of the most critical voices.

Komsomolskaya Pravda, a tabloid owned by the oligarch Vladimir Potanin, switched its approach yesterday, narrowing the focus to the alleged crimes of Mr Khodorkovsky.

Most Russian newspapers seemed more concerned with the falling value of the market and the negative impact of the economy than with the personal fate of Mr Khodorkovsky. Vremya Novostei, one of the more independent newspapers, said the "arrest" of Yukos shares was more significant than the arrest of Mr Khodorkovsky.

Lilia Shevtsova, a political analyst with the Moscow Carnegie Centre, said following a government reshuffle: "We are living in a different country now. It is not only a change in style, rhetoric and some people. It's a change of political regime, and a change in the pattern from oligarchic capitalism to bureaucratic capitalism."

Russian brokerages put a more positive spin on political events, stressing that Dmitry Medvedev, Alexander Voloshin's replacement as head of the presidential administration, was not connected to security services.

 

See also:

YUKOS case

Financial Times (UK), November 1, 2003

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