January 15, 2008	Tuesday	Muharram 05, 1429

French authorities have frozen several bank accounts handled by a subsidiary of Russia's Vneshtorgbank, a spokesman for the bank in Moscow said.

“We confirm that the accounts have been frozen,” the spokesman said, without revealing the names of the bank's clients affected by the order.

Citing a French bailiff's order, RIA Novosti news agency said the accounts of several Russian state companies including arms monopoly Rosoboronexport as well as of government ministries had been frozen.

The accounts were blocked after a request for 79 million euros ($118 million) in compensation sought by Swiss company Noga as part of a dispute over payments allegedly owed by the Russian government, RIA Novosti said.

Noga concluded an oil-for-food deal with the Russian government in the 1990s for around $1.5 billion. The Swiss company alleges Russia never fulfilled its side of the deal.

Noga has since tried to reclaim the sum by seizing Russian assets abroad. French authorities briefly seized a Russian sailing ship moored at a French port in 2000 in a bid to reclaim the money and Noga lawyers also tried to lay claim to two Russian jets at an air show outside Paris in 2001.—AFP