In the Fall of 2001, scandal broke surrounding the largest chains of furniture stores in Moscow, Tri Kita and Grand. The companies import Italian furniture and sell it in a chain of upscale stores in the capital. The general prosecutor initiated a case against high-level officials of the customs service under statute 286 article 3 -- "Abuse of office resulting in serious consequences." The customs officials were accused of demanding a $5 million bribe from Tri Kita owner Sergei Zuev. In response, the customs service initiated a case against the owners of Tri Kita and Grand for nonpayment of import duties. The scandal really blew up when Obshchaya gazeta and Novaya gazeta reported that the furniture companies involved in a massive customs scam were being run by the deputy director of the FSB, Yuri Zaostrovtsev. According to Obshchaya gazeta, Zaostrovtsev was a member of a Security Council commission that in August 2001 drafted an Economic Security Concept (which among other topics considered revisions of customs practices). Soon Duma deputies became interested in the case. Hearings were held, but the main questions -- including what role was played by the deputy director of the FSB in this whole story -- were not asked.

The complexities of the legal battles between the general prosecutor and the customs office over furniture imports may not seem particularly interesting. However, if we may suppose that the general procuracy opened a case against the customs office with MVD support, knowing that it would embarrass FSB officials, then what we have is the current round in the fight between the FSB and the MVD. And in this round the MVD dealt a blow to the FSB.