Life: Birch Meal Paper

Replacement of the Bank of Moscow management has been accompanied by a giant controversy. The new owners have announced that astronomical amounts are missing, which the former management had handed out by way of loans. A search for money missing from the Bank of Moscow has taken us to the city of Krasnokamsk.

According to the latest research data, birch trees that we are so intimately familiar with can provide more than sap, brooms, or firewood to heat up your steam-room. Recently, it transpired that birch can be used to manufacture top-notch paper, a high-tech prototype of sorts of ancient Russian writings on birch bark. Continue reading

The court ruled that denying access to Borodin’s case for his lawyer was unlawful

The Court agreed that the Committee at the Ministry of the Interior violated the right of the former head of Bank of Moscow for protection.

The Tverskoi District Court of the City of Moscow ruled that the decision of the Investigative Department of the Interior Ministry, by which on 1July it denied Vladimir Krasnov, the second defender of the former President of Bank of Moscow Andrey Borodin, access to Mr. Borodin’s case, was unlawful.

No Hibernation for Polar Bear


The controversy involving change of ownership at the Bank of Moscow has dragged out for several months now. The new shareholders have accused the former management of issuing loans to empty shells. Our correspondent has followed the trail of a Bank of Moscow loan.

In July of this year, the workforce of the Segezh Pulp-and-Paper Mill, one of Russia’s largest, has marked the 72th anniversary of the mill. The Segezh Pulp-and-Paper Mill was built on the shores of the lake Vygozero, at the heart of the Republic of Karelia, in 1939. Over time, a town with the beautiful name Segezha sprang up around the mill. In those days, the mill used Europe’s most powerful machines to make kraft paper.
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The untwisting of ‘Borodin’s case’ has started

Novaya Gazeta

Arrest in the home country was upheld as legal, while lawyers are not allowed near the case…

Novaya Gazeta reports that ‘Andrey Borodin’s case’ is starting to develop in full motion: his arrest was upheld while his lawyers are not allowed to defend him in this case and no explanation has been provided.

Vladimir Krasnov, one of the lawyers who were not allowed to defend Andrey Borodin, gave interview to Novaya Gazeta about the development of the criminal case against Andrey Borodin. The lawyer stated that the fact that he was not allowed to defend Andrey Borodin is a severe violation of his client’s right to protection.

Borodin was not allowed a second lawyer

Business FM

The lawyer intends to appeal to Tverskoy Court against the action of the investigator

The Investigative Committee of the Ministry of Interior Affairs has refused to allow lawyer Vladimir Krasnov to act as a second legal representative in the case of the former Bank of Moscow President Andrey Borodin. As Krasnov told, investigator Dmitry Pisarevsky bases his refusal on fact that there is no agreement of Borodin in the case.

In the lawyer’s opinion, it is sufficient to present a warrant and a copy of his service certificate in order to start working on this case. Krasnov and Borodin consider the actions of investigators to be a severe infringement of his rights to protection. ‘This fact confirms the fears of my client that in Russia he does not have any grounds to count on a fair investigation of his case’ – the lawyer notes.

On the 8th of July Krasnov intends to appeal against the actions of the investigator in Tverskoy Court of Moscow.

Banks are not afraid of dirt!

Argumenty Nedeli

Argumenty Nedeli note that he state has spent 7500 rubles, taken from the pocket of each Russian citizen, in order to provide a ‘pointless’ financial aid for VTB.

This article looks at how in the beginning of the crisis in 2008 – 2009, VTB has received 600 billion rubles of state aid – this was more than any other bank has received. In September of 2009 VTB has received additional contribution into its nominal capital for a sum of 180 billion rubles from the state budget.

Argumenti Nedeli stresses that because of these kind and groundless ‘presents’ from the state, the group of people managing VTB has once again decided to ask for 295 billion rubles to rescue Bank of Moscow. With the backing of the Minister of Finance this sum was taken away from Deposit Insurance Agency (DIA).

The newspaper concludes that Kostin and Kudrin have fully emptied the state savings which were intended for indemnification of losses of the depositors of troubled banks.

Defence of the former head of Bank of Moscow is perplexed about the statements of Alexei Kudrin

Radio ‘Echo Moskvy’


Echo Moskvy reported that the Minister of Finance has blamed Andrey Borodin for the critical situation of the credit organisation. Kudrin has also expressed hope that the law enforcement bodies will conduct all the necessary investigatory and operative actions. According to Vladimir Krasnov, Kudrin stepped beyond his powers with these statements. Besides, the lawyer has drawn attention to the fact that Andrey Borodin has not been charged with what the Minister of Finance accused him of.

Listen to the statement of Vladimir Krasnov (in Russian)

Borodin did not take so much


This article in Vedomosti states that based on the information, received by the newspaper, the price of the Bank of Moscow rescue package has increased to 250 billion rubles and this amount exceeds the value of the Bank’s problem loans significantly.

Vedomosti asks why there is a need to provide a sum exceeding the problematic assets of the bank, but people, they spoke to, could not explain this.

The article reminds its readers that ever since the start of the crisis VTB has already received 630 billion rubles from the state: 200 billion rubles VTB received in a form of subordinated debt from VEB, for 180 billion rubles the government has bought out the emission of its shares, and now 250 billion rubles more will be added for the Bank of Moscow sanation.

400 billion rubles worth of health will be bought for Bank of Moscow

Business FM


Business FM reports that Bank of Moscow rescue will cost 400 billion rubles. However, earlier problem assets of the bank were estimated to be worth two times less than this amount. Previously, former President of Bank of Moscow Andrey Borodin said that there loans amount to 217 billion rubles, and he stressed that they are not ‘problematic’. Borodin sees political motivation behind this.

The Central Bank will give 250 billion roubles for the Bank of Moscow sanation

RBC Daily

RBC Daily writes that while the meeting at the Central Bank regarding the Bank of Moscow situation was in progress, Sergey Aleksashenko, former First Deputy Chairman of the Central Bank of Russia, in his blog expressed strong criticism of VTB head Andrey Kostin and even suggested that he should be sacked. In addition, he noted that VTB should not have been rescued by the state during the crisis, but rather should have been made bankrupt as it does not have any systemic importance, and only its subsidiary – VTB 24 – does.