Moscow - Ria Novosti
Former bank of Moscow President Andrei Borodin is suspected of illegally selling shares in Estonia's lender Eesti Krediidipank, causing a 12 million euro loss to the bank, a law-enforcement source told RIA Novosti on Monday. "The authorities are investigating whether former bank of Moscow's President Andrei Borodin sold a stake in Estonia's Eesti Krediidipank legally and reasonably," the source said, adding that the shares were sold at an artificially low price without due approval procedure. Earlier on Monday, an Investigative Committee spokesperson at the Interior Ministry said Borodin's ally and former Bank of Moscow Vice President Dmitry Akulinin, who has been arrested and accused of abuse of office, is suspected of providing $63 million worth of loans to two Cypriot companies illegally. Borodin headed Bank of Moscow, the capital's investment vehicle under former Moscow Mayor Yury Luzhkov, since its inception 16 years ago. But in February the bank was taken over by state-run lender VTB after President Dmitry Medvedev fired Luzhkov over a lack of trust. Borodin, who together with Akulinin held 20.3 percent in Bank of Moscow, strongly opposed the acquisition of his bank by VTB but in spring he finally gave up and sold his stake to businessman Vitaly Yusufov. A recent check of Bank of Moscow revealed a significant hole in its assets and it received a bailout of 400 billion rubles ($14 bln), a record sum for the Russian banking system. Borodin has fled Russia, and is wanted on an international arrest warrant but denies any wrongdoing.