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Fears grow that Russia may retaliate over Litvinenko

Fears were growing on Wednesday night that Moscow's refusal to extradite the man wanted in connection with the murder in London of Alexander Litvinenko would seriously fray diplomatic ties with Moscow and damage British businesses working in Russia.

Analysts said the standoff would accelerate the Kremlin's attempts to muscle in on a huge Siberian gas field run by a joint venture involving BP.

But Tony Blair's office in Downing Street said Russia would improve "confidence" in trade by fulfilling its international obligations to hand over former KGB officer Andrei Lugovoi to stand trial for murdering Mr Litvinenko, who died in London last year after apparently being poisoned with the radioactive isotope polonium-210.

On Tuesday the director of public prosecutions for England and Wales, Sir Ken Macdonald, said there was enough evidence to charge Mr Lugovoi. Tony Blair and the British foreign secretary, Margaret Beckett, said they expected cooperation from the Kremlin. However, Moscow is citing its constitution, which rules out extradition of Russian citizens.

Britain was the biggest single foreign investor in Russia's economy last year, but Moscow's sentiments toward western companies are hardening in line with a downturn in relations with the EU and the US.
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