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Investigators say $1 mln in cash seized from Storchak's flat

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Cash worth $1 million has been seized from the apartment of Sergei Storchak, a deputy Russian finance minister charged with attempted embezzlement, a senior investigator said on Wednesday.
MOSCOW, December 5 (RIA Novosti) - Cash worth $1 million has been seized from the apartment of Sergei Storchak, a deputy Russian finance minister charged with attempted embezzlement, a senior investigator said on Wednesday.

Dmitry Dovgy, head of the Main Directorate of the Investigation Committee under the Russian Prosecutor General's Office, told government daily Rossiiskaya Gazeta that documents incriminating Storchak and his co-defendants were also seized from the apartment.

Storchak is accused of attempting to embezzle $43 million in budget funds.

The Russian Prosecutor General's office confirmed earlier on Wednesday that it had dropped a new criminal probe against Storchak relating to abuse of office. "The resolution to initiate a criminal case has been dropped as ungrounded," a spokesman said.

Russia's Investigation Committee announced the second probe against Storchak on Tuesday. According to the Committee, the new probe relates to charges that he abused office during talks on the settlement of Russia's Soviet-era debt to Kuwait. The talks were held in Moscow on January 27-28, 2005.

Under the agreement, signed in May 2006, Russia was set to pay $600 million of the debt in goods, and the remaining $1 billion as a cash payment.

The Investigation Committee said on Wednesday it would appeal the prosecutors' decision to drop the new probe against Storchak.

A key figure in Russia's Paris Club debt talks, Storchak was detained in Moscow along with two businessmen on November 15. The Investigation Committee said his arrest was related to the settlement of Soviet-era debts and that the measure was based on prosecutors' concerns that he could destroy evidence or intimidate witnesses. Storchak pleaded not guilty.

The Committee said earlier the arrest was related to debts to the Sodexim company and that Storchak had been arrested along with Sodexim general director Viktor Zakharov and the president of the Moscow-based Interregional Investment Bank, Vadim Volkov. They face five to ten years in prison.

A lawyer for Storchak confirmed on Wednesday that $1 million was confiscated from his client's family. "As far as I know from his family, this money was collected to buy a country house near Moscow," Igor Pastukhov told Ekho Moskvy radio, adding that "the origin of the money is legal."

"Storchak worked as deputy head of Vnesheconombank for a long time, and legally received income commensurate with the sum indicated," Pastukhov said.

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