BUSINESS

A former KGB member turned businessman has bought the London based daily newspaper, The Evening Standard, which was founded in 1827, provoking debate in the UK media over the suitability of a man a Times source describes as "closer to those in power than he likes to admit publicly" to run a paper.

Alexander Lebedev, with a fortune estimated at $3.1 billion before the crisis, revealed last week that he was in negotiations to buy the paper for ?1 (48.6 rubles.) The Evening Standard is struggling due to intense competition with free papers and is reportedly losing at least ?10 million (486 million rubles) a year, leading some to question his motives.

"I don't think he is in it to make money, any more than he is in Novaya Gazeta (which he owns a 39 percent stake in) to make money; I think he is merely making a political point at home by showing the Kremlin that independent media owners can only satisfy their principles abroad now," Professor Stephen Hutchings, an expert in Russian Media at the University of Manchester told The Moscow News.

Consequently, some are worried that he will attempt to simply use it as platform to get his views across. However, his spokesman denied this, pointing to his relationship with the liberal Novaya Gazeta, a paper that is controversial for its coverage of Chechnya and also employed murdered journalist Anna Politkovskaya.

"He does not influence Novaya Gazeta because he respects the journalists and understands that they know better what to do. A free press is important for building civil society," Artyom Artyomov said.

Lebedev describes himself as a capitalist idealist on his website and has been known for his criticism of the government, particularly over corruption. But Hutchings told The Moscow News the businessman's relationship with the Kremlin remains unclear.

"Some have said he is being set up by Putin into fooling the West into thinking there is free expression in Russia," Hutchings said.

Currently, the Evening Standard does not seem to fit with Lebedev's ideals, despite describing it as a ‘progressive' paper. It was part of the Daily Mail and General Trust (DMGT) group whose editor-in-chief, Paul Dacre, is known for being opinionated and right wing, something that Lebedev may seek to change.

British Members of Parliament have also queried whether Lebedev, as a former member of a foreign security service, is suitable for running a newspaper. The 2002 Enterprise Act states that public interest considerations must be taken into account in the acquisition of newspapers.

"Apart from the need for the accurate presentation of news, free expression of opinion and plurality of views, consideration is also to be given to the interests of national security," said Conservative Member of Parliament Richard Ottaway in a letter to The Times.

"It is appropriate for the Government to review whether this acquisition of the Evening Standard raises these public interest considerations," he added.

Despite a potential inquiry, his credentials look good, partly due to his friendship with Mikhail Gorbachev who he sits with on the board of the Raisa Gorbachev foundation, which raises money for children with cancer in Russia.

This, along with his rejection of overt displays of wealth, has helped raise his profile as a new, socially responsible type of Russian billionaire.

"If a person buys air-planes, yachts and football clubs abroad, who is going to like this?" Lebedev said in a veiled criticism of Roman Abramovich.

Ottaway confirmed that he was not against Lebedev or his purchase per se but he simply wanted to see an inquiry.

"He certainly has a lot of friends in London but that doesn't absolve the authorities for exercising due diligence," he told the Moscow News.

Others have warned that Lebedev's purchase could set a precedent for other wealthy Russians buying media abroad, including exile Boris Berezovsky, who is wanted for extradition.

"I'm not aware of any other major Russian stakes in western media, though the Lebedev precedent could change this; Berezovsky may now come forward with similar projects, which would be fascinating," Hutchings said. 

By Ed Bentley