DATE=9/1/1999
TYPE=CORRESPONDENT REPORT
TITLE=RUSSIA CORRUPTION (L-ONLY)
NUMBER=2-253331
BYLINE=EVE CONANT
DATELINE=MOSCOW
CONTENT=

VOICED AT:

INTRO:  Several members of Russia's political 
elite are charging that the recent barrage of 
allegations in the Western press concerning money 
laundering are part of a well-coordinated effort 
to undermine Russia's role in world affairs.  V-
O-A Moscow correspondent Eve Conant reports that 
Russian leaders are calling the allegations a 
Western-led smear campaign against their country.

TEXT:  Russia's Foreign Minister Igor Ivanov says 
allegations that Russian officials and organized 
crime groups laundered billions of dollars 
through U-S banks are unsubstantiated attempts to 
damage Russia's prestige. 

/// Act Ivanov in Russian in full and fade under 
///

"These are attempts by the western press to cast 
a shadow on U-S - Russia relations," he says. 
"These are political games linked to the upcoming 
elections in Russia and the U-S," he says.

The allegations, which were first reported a week 
ago in the New York Times newspaper, say the 
laundered funds may include stolen U-S aid money, 
International Monetary Fund (I-M-F) loans, and 
criminal profits.

The Foreign Minister's statements mark the first 
official reaction to the financial scandal. His 
response follows comments by U-S Treasury 
officials that they will oppose the release of I-
M-F loans to Russia until they are certain 
previous loans were not siphoned off by corrupt 
officials. 

Western news reports say as much as 15 billion 
dollars worth of Russian money may have passed 
though the Bank of New York over the past year 
and half. Some news reports have called Russia a 
"gangster state" and described members of the 
elite as "robber barons." 

One person linked in the press to the money-
laundering scheme is Russia's former Prime 
Minister Viktor Chernomyrdin. He told reporters 
Wednesday there was  no  way western loans could 
be linked to Bank of New York accounts.

/// ACT Chernomyrdin in Russian in full and fade 
under ///

He says, "What does this have to do with I-M-F 
money? This is stupidity," he says. "Someone is 
obviously interested in stirring up this 
nonsense."

/// OPT /// Russia's Nezavisimaya Gazeta 
newspaper writes that the scandal is a sign the 
West no longer needs Russia and can afford to 
ruin its reputation. Another newspaper echoed 
Foreign Minister Ivanov's statement that the 
scandal is linked to attempts to influence 
presidential elections in both the United States 
and Russia. /// END OPT ///

The I-M-F has granted Russia more than 20 billion 
dollars in loans since the breakup of the Soviet 
Union in 1991, and is considering another 
installment of 640 million dollars. According to 
most Russian and Western estimates, over 100 
billion dollars worth of capital has been 
transferred out of the country since 1992. 
(Signed)

NEB/EC/GE/KL 



01-Sep-1999 11:17 AM EDT (01-Sep-1999 1517 UTC)
NNNN

Source: Voice of America
.