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Spy vs. Spy


Was the Author of The Sex Demon a Spy for MI6?


His Russian lawyer says he's just crazy.

A RUSSIAN diplomat and espionage thriller writer went on trial in Moscow
yesterday accused of working for MI6.

Platon Obukhov, a second secretary at the Russian Foreign Ministry, was
arrested four years ago, triggering the worst spy row between Russian and
Britain since the end of the Cold War. In the resulting row, Moscow and
London each expelled four diplomats. The trial appeared designed to heap
embarrassment on the Government and MI6.

Obukhov's lawyers and family say that the charges against him are laughable
because he is mentally unwell and probably suffering from schizophrenia. The
former diplomat admits that he contacted British agents, but says he was
seeking material for his books. Most of Obukhov's novels are packed with
sadistic sex and violence. Titles include The Sex Demon, Dicing with Death
and In the Embrace of the Spider.

Galina Krylova, his lawyer, said: "He has always had problems with his mental
health. He is obviously not well." As a child, Obukhov tried to burn down the
family home and attempted suicide on several occasions. When he publicly
"confessed" to his crimes on Russian television four years ago, he appeared
wearing a dunce's cap, odd socks, laceless shoes and an inane grin.

The Russians claim that he worked for MI6 for 20 years, but his mother, Olga,
says he was set up by the British to embarrass his father, a former Soviet
deputy foreign minister responsible for disarmament negotiations. At the time
of the scandal, his father was the Russian ambassador to Denmark. He was
recalled from Copenhagen after his son's arrest.

His mother said: "Many thanks to British intelligence. They recruited him
knowing perfectly well that he was ill and that our prisons are hell on
earth. And if they didn't know that he was ill, what are the British
taxpayers getting for their money?" When she last saw her son in a St
Petersburg psychiatric hospital a year ago, he accused her of stealing his
Nobel Prize for Literature. She said: "He was in a terrible state, mentally
and physically."

But a government-appointed psychiatrist concluded that Obukhov was feigning
illness to avoid imprisonment. After his arrest, local television showed
clips collected by Russian counter-intelligence of Obukhov sending messages
to his British handlers from a Moscow trolleybus with a special transmitter.
On television he admitted working for MI6 for �1,600 a month and could be
jailed for up to 25 years if convicted.
The London Telegraph, February 8, 2000


Gold Market


Barrack Says It Will Stick to Hedging


Forward sales along with call options.

Gold prices took a dive in volatile trading on Monday after Barrick Gold,
Canada's largest producer, said it would maintain its hedging strategy,
refusing to follow the lead of rival Placer Dome.

The decision disappointed investors, who had been hoping for a move away from
hedging by the major gold companies. Spot gold prices, which had risen to as
high as $322 an ounce in New York in the morning, up 3 per cent on the
opening, dropped to $302 following the Barrick announcement.

Barrick shares, which had risen by 7.5 per cent in morning trading, were also
down 35 cents to C$25.95 in Toronto.

"People were hopeful that Barrick would follow suit," said Todd Hinrichs,
gold analyst with ABN Amro in Chicago. "I would call it somewhat
disappointing."

Placer Dome surprised the gold market on Friday by announcing it would end
its long-held practice of selling gold forward, a decision that will remove
about 2m ounces of gold from the market this year. The decision sent prices
up about 8 per cent as investors anticipated similar moves by other companies.

But Barrick said it would make only slight reductions in total forward sales,
from 14m ounces at the end of the third quarter to 13.6m ounces. The company
will realise a minimum average price of $360 per ounce on those sales.

Barrick did unveil moves to profit if gold prices should begin to rise,
however. The company said it had purchased 6.8m ounces of call options
covering 100 per cent of its production from March 1 2000 to the end of 2001.
Those options give Barrick the right, but do not oblige it, to purchase gold
at $319 an ounce in 2000 and $335 an ounce in 2001.

That means Barrick will realise at least $360 per ounce sold, based on its
hedging programme, but will also gain if the price rises above those strike
prices.
The Financial Times, February 8, 2000

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