In a message dated 9/2/99 5:39:03 PM Central Daylight Time, AOL News writes: << Subj: Russian Envoy to IMF Abruptly Quits Date: 9/2/99 5:39:03 PM Central Daylight Time From: AOL News BCC: Ahab42 Russian Envoy to IMF Abruptly Quits .c The Associated Press By ANGELA CHARLTON MOSCOW (AP) - Russia's envoy to the International Monetary Fund abruptly quit Thursday, but insisted the decision was unconnected to reports that IMF aid to Russia may have been illegally diverted through the Bank of New York. Mikhail Zadornov said all IMF money had been spent properly, and that he was resigning to run for parliament in December. The move came amid concerns that the IMF may delay new loans to Russia over the scandal. 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. News reports have said U.S. investigators believe Russian organized crime and others laundered billions of dollars through the Bank of New York. Some reports have suggested that IMF money may have been diverted in the transactions. No one has been charged in the matter, but on Thursday the Bank of New York dismissed a second employee in connection with the scandal. A source close to the matter said Svetlana Kudryavtsev, an associate in the bank's Eastern European division, was fired for failing to cooperate with an internal probe. The bank had already fired Lucy Edwards, a London-based vice president, last Friday for gross misconduct, violation of the bank's internal policies, falsification of banks records and failure to cooperate with the bank's investigation. In Moscow, Zadornov insisted that IMF aid wasn't mishandled, he urged Russian officials to ``take an active role'' in the Bank of New York investigations. The Russian government has said little about the money laundering case. Prosecutors said they are looking into the reports, but no formal investigation has been launched. Russian organized crime has close ties with some officials and corruption is endemic in the government. Some officials have reacted with nationalist indignation to the allegations reported in Western media. Foreign Minister Igor Ivanov said Wednesday the scandal was part of a deliberate policy by ``certain circles who don't want Russia to reassert its role as a great power.'' Russian newspapers took the same line on Thursday. ``McCarthyism lives. And its cause forges ahead,'' the influential daily Kommersant proclaimed in a front-page headline. It went on: ``Only recently the term `Soviet threat' went out of the West's political vocabulary ... To replace the `Soviet threat,' came `Russian mafia.''' The popular daily Izvestia noted that ``the West, for some unknown reason, has started missing the times of the Cold War and the Iron Curtain.'' Russian media have also linked the affair to presidential campaigning in the United States. The reaction reflects the recent decline in relations between the United States and Russia. The two nations clashed over the Kosovo conflict and the tone from Moscow is increasingly nationalistic, a stance welcomed by many Russians nostalgic for the days of Soviet superpower status. Zadornov, meanwhile, played down his departure, saying it shouldn't harm Russia's relations with the IMF. He predicted the next scheduled loan would come as scheduled later this month. Russia is the IMF's biggest borrower, with about $20 billion in lending since 1992. A long-time member of the Russian Cabinet, Zadornov said he was resigning to run for parliament as a candidate of the liberal Yabloko party, which has a reputation for honesty in Russia's often corrupt politics. President Boris Yeltsin, who must approve the resignation and appoint a successor, did not immediately respond. ``We have succeeded in fully renewing our relations with international financial institutions,'' Zadornov told a news conference. ``I consider my mission fulfilled.'' Zadornov helped negotiate the resumption of IMF aid to Moscow this July after it was frozen in the wake of Russia's financial meltdown last year. 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. The Russian ruble fell against the U.S. dollar for a third day Thursday amid concerns that the IMF loan would be delayed. One dollar bought 25.79 rubles on the Moscow Interbank Currency Exchange, up from 25.4 rubles the day before. AP-NY-09-02-99 1838EDT 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>. >>
Russian Envoy to IMF Abruptly Quits .c The Associated Press By ANGELA CHARLTON MOSCOW (AP) - Russia's envoy to the International Monetary Fund abruptly quit Thursday, but insisted the decision was unconnected to reports that IMF aid to Russia may have been illegally diverted through the Bank of New York. Mikhail Zadornov said all IMF money had been spent properly, and that he was resigning to run for parliament in December. The move came amid concerns that the IMF may delay new loans to Russia over the scandal. 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. News reports have said U.S. investigators believe Russian organized crime and others laundered billions of dollars through the Bank of New York. Some reports have suggested that IMF money may have been diverted in the transactions. No one has been charged in the matter, but on Thursday the Bank of New York dismissed a second employee in connection with the scandal. A source close to the matter said Svetlana Kudryavtsev, an associate in the bank's Eastern European division, was fired for failing to cooperate with an internal probe. The bank had already fired Lucy Edwards, a London-based vice president, last Friday for gross misconduct, violation of the bank's internal policies, falsification of banks records and failure to cooperate with the bank's investigation. In Moscow, Zadornov insisted that IMF aid wasn't mishandled, he urged Russian officials to ``take an active role'' in the Bank of New York investigations. The Russian government has said little about the money laundering case. Prosecutors said they are looking into the reports, but no formal investigation has been launched. Russian organized crime has close ties with some officials and corruption is endemic in the government. Some officials have reacted with nationalist indignation to the allegations reported in Western media. Foreign Minister Igor Ivanov said Wednesday the scandal was part of a deliberate policy by ``certain circles who don't want Russia to reassert its role as a great power.'' Russian newspapers took the same line on Thursday. ``McCarthyism lives. And its cause forges ahead,'' the influential daily Kommersant proclaimed in a front-page headline. It went on: ``Only recently the term `Soviet threat' went out of the West's political vocabulary ... To replace the `Soviet threat,' came `Russian mafia.''' The popular daily Izvestia noted that ``the West, for some unknown reason, has started missing the times of the Cold War and the Iron Curtain.'' Russian media have also linked the affair to presidential campaigning in the United States. The reaction reflects the recent decline in relations between the United States and Russia. The two nations clashed over the Kosovo conflict and the tone from Moscow is increasingly nationalistic, a stance welcomed by many Russians nostalgic for the days of Soviet superpower status. Zadornov, meanwhile, played down his departure, saying it shouldn't harm Russia's relations with the IMF. He predicted the next scheduled loan would come as scheduled later this month. Russia is the IMF's biggest borrower, with about $20 billion in lending since 1992. A long-time member of the Russian Cabinet, Zadornov said he was resigning to run for parliament as a candidate of the liberal Yabloko party, which has a reputation for honesty in Russia's often corrupt politics. President Boris Yeltsin, who must approve the resignation and appoint a successor, did not immediately respond. ``We have succeeded in fully renewing our relations with international financial institutions,'' Zadornov told a news conference. ``I consider my mission fulfilled.'' Zadornov helped negotiate the resumption of IMF aid to Moscow this July after it was frozen in the wake of Russia's financial meltdown last year. 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. The Russian ruble fell against the U.S. dollar for a third day Thursday amid concerns that the IMF loan would be delayed. One dollar bought 25.79 rubles on the Moscow Interbank Currency Exchange, up from 25.4 rubles the day before. AP-NY-09-02-99 1838EDT 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>.
