(14 Jun 2000) Russian/Nat
XFA
Facing a wave of criticism from politicians and journalists, President Vladimir Putin has denied the arrest of media tycoon Vladimir Gusinsky was punishment for criticising the Kremlin.
Even former Soviet leader Mikhail Gorbachev has stepped into the row over the arrest of Gusinsky.
Gorbachev criticised the arrest and detention as an attempt to muzzle the free press in Russia and urged Putin to intervene.
Many now believe Putin's chief of staff Alexander Voloshin may have been a driving force behind his detention.
This is the Moscow prison where Vladimir Gusinsky has been held since his arrest on Tuesday - the Butyrka jail, considered one of the worst in the Russian penal system.
He is reported to be in a cell with two other suspects - a luxury in Butyrka, where cells routinely hold up to 80 prisoners.
The media magnate is being held on suspicion of taking part in the theft of 10 (m) million U-S dollars in state funds in a privatisation deal.
Gusinsky's legal team says his detention was a sign of a return to the old days of repression.
SOUNDBITE: (Russian)
"I can say quite frankly and firmly that on one of the levels of work of our security forces a police regime is being formed or has been formed already."
SUPER CAPTION: Genry Reznik, lawyer for Vladimir Gusinsky
Long time Kremlin insider Chubais agrees the arrest signals a step away from democracy.
SOUNDBITE: (Russian)
"Regardless of whatever they were trying to achieve - the people who took the decision to arrest Gusinsky - they have achieved a provocation against the president, and even worse, against the country. That's my personal opinion. I know what people are saying about Russia abroad. I know and you know what was published in the leading world newspapers. I know this mad, absurd decision will inflict the strongest blow to the country."
SUPER CAPTION: Anatoly Chubais
Locked in a feud with Putin's administration in recent months, Gusinsky has alleged the Kremlin is persecuting him because it wants to crack down on independent news media.
His Media-Most holding company is one of Russia's largest media groups and is widely considered the most outspoken, having frequently criticised the Kremlin over the Chechen war, civil rights and other issues.
The arrest came a month after investigators backed by masked, gun-toting police raided the offices of Gusinsky's Media-Most holding company, in a raid that a court later ruled was illegal.
On a visit to Spain, Russia's leader Vladimir Putin denied any involvement in Gusinsky's arrest and said he was "worried" by the development.
Not everyone is convinced by Putin's claims.
Another theory is that advisers such as Putin's chief of staff Alexander Voloshin may be acting behind the President's back.
Former Soviet leader Mikhail Gorbachev now heads a committee formed in defence of Gusinsky's television channel N-T-V.
He said on Wednesday that whoever was behind it, Gusinsky's arrest was an ominous sign for Russia.
SOUNDBITE: (Russian)
(On Putin's claim he knew nothing of Gusinsky's arrest). "I can tell you this is the worst kind of situation. It's better if you've made a mistake to correct it. But if some kind of forces start acting behind your back, and the president knows that, then that is an alarming situation."
SUPER CAPTION: Mikhail Gorbachev, Former Leader of USSR
Gusinsky's posts as head of the Russian Jewish Congress and senior official in the World Jewish Congress made his arrest particularly sensitive.
The Israeli government has called for him to be released.
SOUNDBITE: (English)
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