BRITISH prosecutors have signed an agreement with Russian authorities designed to help extradite suspected financial criminals who have fled to London.

Ken Macdonald, director of public prosecutions, last week signed a “memorandum of understanding” with Alexander Zvyagintsev, deputy prosecutor-general of the Russian Federation, in which both sides agreed for the first time to formal co-operation.

Last week, Zvyagintsev told The Sunday Times: “This agreement will serve as a basis for long-term and constructive relations on extradition matters.”

He added: “Undoubtedly, those who are being sought for extradition by the prosecutor-general and those who are planning to flee Russia and escape justice will be very unhappy.”

Russian authorities are determined to bring back people they claim have committed tax fraud and laundered hundreds of millions of dollars via offshore companies before fleeing to London.

Top of the hit-list are billionaire Boris Berezovsky and Ahmed Zakayev, the Chechen leader, both based in London. Other targets include 16 businessmen, mainly former executives and employees of Yukos, the Russian oil giant, who worked closely with Mikhail Khodorkovsky, now in jail for tax fraud. Cases have been prepared against the individuals and new extradition warrants will be presented in the next few months.

The directors of Yukos are among the foreign nationals wanted by the Russian investigating authorities. In August, the Russian prosecutor-general’s office accused Steven Theede, a former Yukos chief executive, and three other former executives of seizing $10 billion (£5.3 billion) from Yukos.

Tim Osborne, a director of GML, Yukos’s largest shareholder, Bruce Misamore, former financial director, and David Godfrey, a Yukos director are also being investigated. All four, who deny the allegations, fled Russia for London two years ago for fear of state persecution.

The attempt to get Berezovsky has been repeatedly blocked since he was granted political asylum. Berezovsky denies any wrongdoing and maintains that all charges against him are politically motivated. This has soured diplomatic relations.

After signing the agreement, Zvyagintsev had meetings with officials at the Home Office, Scotland Yard and the Crown Prosecution Service. Further co-operation agreements are expected to be signed in the next few weeks.

Zvyagintsev added: “[The agreement] strengthens our effectiveness and co- operation in the sphere of extradition.

“We will be exchanging information and consulting with the Crown Prosecution Service more closely and regularly. We will also be looking at new ideas to counter international crime. Our investigators will be in much closer contact with British officials.”

The CPS said: “The agreement is designed to support the operation of extradition and mutual legal-assistance arrangements between the UK and Russia through enhanced levels of co-operation between the CPS and the Russian procuracy-general.”

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