Asylum for tycoon threatens Blair’s links with Putin

A BUSINESS tycoon, wanted by Russia for fraud, has been granted political asylum, in a move likely to strain ties between London and Moscow.

Boris Berezovsky, once regarded as the most powerful man in Russia, was told by the Home Office that he had been granted refugee status. Senior sources at the Home Office confirmed that officials had reversed an earlier decision.

The move, which recognises that he has a “well-founded fear of persecution” if he returns to Russia, effectively kills off attempts to have him extradited to Moscow to face fraud allegations.

The decision is expected to boost Mr Berezovsky’s hopes of challenging President Putin and his allies in parliamentary elections scheduled for December. Mr Berezovsky is standing for his Liberal Russia party.

It will infuriate Mr Putin and could damage Tony Blair’s attempts to build a strong personal relationship with the Kremlin leader. The Russians are also attempting to extradite Akhmed Zakayev, a Chechen rebel leader accused of killing Russian troops, who has been released on bail.

British police arrested Mr Berezovsky in March in connection with charges that he and an associate had defrauded a regional government in Russia of the equivalent of £9 million during the mid-1990s. He was subsequently released on bail pending extradition hearings.

Mr Berezovsky has claimed that his life would be in danger if he were forced to return to Russia. He also claims that the charges are politically motivated.

Alex Goldfarb, an associate of Mr Berezovsky, said that it was “very welcome news and came as a surprise”. Semion Aria, a lawyer for Mr Berezovsky, said that Britain appeared to be sending a signal to Moscow. “I do not know all the details of British legislation, but logic suggests that if a country grants a person political asylum, it will naturally refuse to extradite him,” he said.

Mr Berezovsky, who lives in London, has offices in Savile Row and a villa and a yacht in the South of France. In 1997 Forbes magazine estimated his wealth at £2 billion.

Since coming to London Mr Berezovksy has been buying and selling houses in Chelsea.At least one of his properties is said to be worth £5 million. “If you want to make money, you have to buy at the top level,” he has been quoted as saying.

Mr Berezovsky was one of a handful of so-called oligarchs who amassed huge fortunes during the chaos of Russia’s privatisation during President Yeltsin’s rule. At one time he controlled an empire that included an airline and the country’s main television station, as well as a newspaper.

He went on to secure an influential job in the Kremlin and helped to mastermind Mr Yeltsin’s re-election in 1996. He also helped Mr Putin to secure victory in 2000.

The two men were in dispute, however, after Mr Putin began curbs on racketeering, seen by many as a power struggle aimed at stripping the oligarchs of their political clout.

Mr Berezovsky played a key role in implementing the 1996 peace agreement that ended Russia’s first war against Chechen separatists. In one of his more strident attacks, Mr Berezovsky alleged that Mr Putin knew in advance of blasts in 1999 in Moscow blamed on Chechen rebels.