Russia arms exporter wins libel case

MOSCOW (Reuters) - A Russian court on Wednesday ruled a businessman who alleged the state arms exporter planned to grab private assets was guilty of libel, in a case analysts said was evidence of a turf war between Kremlin clans.

In a newspaper interview last year, fund manager Oleg Shvartsman said arms exporter Rosoboronexport and some Kremlin insiders had signed him up to act as a corporate raider and pressure private companies to give up their assets.

Rosoboronexport, whose chief is a long-standing associate of former President Vladimir Putin, denied it had any links to Shvartsman or that it had any plans to work with him. Shvartsman later said the newspaper had misinterpreted his words.

The arms exporter had asked for up to 80 million roubles ($3.4 million) in damages. A Moscow court on Wednesday found Shvartsman guilty of libel and ordered him to pay 30,000 roubles ($1,264) and the Kommersant daily, which printed the interview, to pay 20,000 roubles.

"Rosoboronexport is satisfied with the court's decision," Natalya Almazova, a Rosoboronexport representative, said.

Shvartsman's newspaper interview sent shockwaves through Russia's political and business elite because any public allegation that top officials have business interests is considered taboo.

Observers interpreted the interview as part of a coordinated attack on a loose grouping of Kremlin insiders with a security service background, known as the "siloviki."

The Kremlin insiders on whose behalf Shvartsman said he was planning to act included leading "siloviki" figures.

The "siloviki" have been battling other clans for domination within the Kremlin and some analysts said Vladimir Putin's choice of Dmitry Medvedev to succeed him was a blow to the group.

Medvedev became Russia's president on Wednesday and Putin is set to take over as prime minister.

(Writing by James Kilner, editing by Christian Lowe and Mary Gabriel)