In a message dated 9/3/99 7:42:59 AM Central Daylight Time, AOL News writes: << Subj: Yeltsin Discusses Banking Scandal Date: 9/3/99 7:42:59 AM Central Daylight Time From: AOL News BCC: Ahab42 Yeltsin Discusses Banking Scandal .c The Associated Press By GREG MYRE MOSCOW (AP) - President Boris Yeltsin, who has remained silent on an alleged money laundering scandal linked to Russia, summoned a top security officer to the Kremlin today for private talks on the controversy. Yeltsin makes only occasional public remarks these days, and has left Kremlin aides to respond to several corruption scandals swirling around his administration. In the most serious case, U.S. investigators are trying to determine whether Russian criminal groups laundered up to $10 billion through the Bank of New York. No one has been charged with a crime, and the Russian government has not been accused of any wrongdoing. Still, Russian officials believe the country's reputation is being harmed, and the Federal Security Service is investigating the extent of Russian involvement. The head of the security service, Nikolai Patrushev, met Yeltsin in the Kremlin, and told the president that the Bank of New York scandal was tied to U.S. politics. ``I reported to the president that the case is political ... and linked to the elections in the United States,'' Patrushev said. ``Of course, it's absurd to talk about such a sum'' being diverted illegally. Russian and U.S. authorities have held several meetings on the case, Patrushev noted, but said the FBI hasn't provided the Russians with any leads for them to pursue. ``If they have some specific evidence, we will carefully consider that,'' he said. ``As of today, they haven't provided us with any such materials.'' U.S. newspapers have reported that the Russian government may have diverted loan money from the International Monetary Fund, but the IMF and the U.S. government say they have no evidence of this. The U.S. government - the IMF's largest member - said it won't decide whether to approve new loans until a full accounting is made of the IMF money Russia has already received. The IMF was expected to release a $640 million installment of a $4.5 billion loan package this month. An IMF mission is currently in Moscow to review Russia's compliance with conditions for the package. Meanwhile, Russia's Foreign Minister Igor Ivanov said the country ``does not intend to defend itself in the wake of media publications.'' ``We have no reason to explain ourselves. As for Russia's good name, it has one,'' Ivanov told the Interfax news agency while on a trip to Armenia. The Russian press has denounced the Western reports in the Bank of New York case, calling it an anti-Russian witch hunt and a return to the Cold War. The reaction reflects the recent decline in relations between the United States and Russia. The two nations clashed over the Kosovo conflict and Moscow is increasingly nationalistic, a stance welcomed by many Russians nostalgic for the days of Soviet superpower status. AP-NY-09-03-99 0842EDT Copyright 1999 The Associated Press. The information contained in the AP news report may not be published, broadcast, rewritten or otherwise distributed without prior written authority of The Associated Press. Announcement: America Online has added Reuters newswires to News Profiles. To add Reuters articles to your daily news delivery, go to KW: <A HREF="aol://5862:146">News Profiles</A> and click on "Modify Your News Profiles." Then click "Edit" and add Reuters from the list on the left. To edit your profile, go to keyword <A HREF="aol://1722:NewsProfiles">NewsProfiles</A>. For all of today's news, go to keyword <A HREF="aol://1722:News">News</A>. >>
Yeltsin Discusses Banking Scandal .c The Associated Press By GREG MYRE MOSCOW (AP) - President Boris Yeltsin, who has remained silent on an alleged money laundering scandal linked to Russia, summoned a top security officer to the Kremlin today for private talks on the controversy. Yeltsin makes only occasional public remarks these days, and has left Kremlin aides to respond to several corruption scandals swirling around his administration. In the most serious case, U.S. investigators are trying to determine whether Russian criminal groups laundered up to $10 billion through the Bank of New York. No one has been charged with a crime, and the Russian government has not been accused of any wrongdoing. Still, Russian officials believe the country's reputation is being harmed, and the Federal Security Service is investigating the extent of Russian involvement. The head of the security service, Nikolai Patrushev, met Yeltsin in the Kremlin, and told the president that the Bank of New York scandal was tied to U.S. politics. ``I reported to the president that the case is political ... and linked to the elections in the United States,'' Patrushev said. ``Of course, it's absurd to talk about such a sum'' being diverted illegally. Russian and U.S. authorities have held several meetings on the case, Patrushev noted, but said the FBI hasn't provided the Russians with any leads for them to pursue. ``If they have some specific evidence, we will carefully consider that,'' he said. ``As of today, they haven't provided us with any such materials.'' U.S. newspapers have reported that the Russian government may have diverted loan money from the International Monetary Fund, but the IMF and the U.S. government say they have no evidence of this. The U.S. government - the IMF's largest member - said it won't decide whether to approve new loans until a full accounting is made of the IMF money Russia has already received. The IMF was expected to release a $640 million installment of a $4.5 billion loan package this month. An IMF mission is currently in Moscow to review Russia's compliance with conditions for the package. Meanwhile, Russia's Foreign Minister Igor Ivanov said the country ``does not intend to defend itself in the wake of media publications.'' ``We have no reason to explain ourselves. As for Russia's good name, it has one,'' Ivanov told the Interfax news agency while on a trip to Armenia. The Russian press has denounced the Western reports in the Bank of New York case, calling it an anti-Russian witch hunt and a return to the Cold War. The reaction reflects the recent decline in relations between the United States and Russia. The two nations clashed over the Kosovo conflict and Moscow is increasingly nationalistic, a stance welcomed by many Russians nostalgic for the days of Soviet superpower status. AP-NY-09-03-99 0842EDT Copyright 1999 The Associated Press. The information contained in the AP news report may not be published, broadcast, rewritten or otherwise distributed without prior written authority of The Associated Press. Announcement: America Online has added Reuters newswires to News Profiles. To add Reuters articles to your daily news delivery, go to KW: <A HREF="aol://5862:146">News Profiles</A> and click on "Modify Your News Profiles." Then click "Edit" and add Reuters from the list on the left. To edit your profile, go to keyword <A HREF="aol://1722:NewsProfiles">NewsProfiles</A>. For all of today's news, go to keyword <A HREF="aol://1722:News">News</A>.
