#6 - JRL 7272
Russia communist chief woos tycoons in YUKOS row
By Ron Popeski
MOSCOW, July 31 (Reuters) - Russia's communist chief set aside ideological differences with wealthy tycoons on Thursday, saying they had been treated badly by the Kremlin in the row over oil giant YUKOS and calling for their support in elections.
Gennady Zyuganov, two-time loser in past presidential polls, said legal action against YUKOS <YUKO.RTS> had created uncertainty that businessmen could not accept.
The detention of a top YUKOS shareholder and a day-long search of company premises have prompted some analysts to suggest that authorities might review privatisations of the 1990s which turned some magnates into billionaires overnight.
"I don't want to defend anyone in particular here, but will say that such actions not only destabilise the situation but also sow complete chaos and could paralyse the financial and economic system," Zyuganov told a news conference.
The Communist Party, rebuilt by Zyuganov after emerging from a ban in the 1990s, now holds about 125 seats along with allies in the State Duma lower house, well behind parties backing President Vladimir Putin. A poll last week gave it 26 percent support, just behind United Russia, the main pro-Kremlin party.
Throughout his tenure as party chief, Zyuganov has denounced the 1990s privatisations under ex-President Boris Yeltsin as a shameful selloff of natural wealth which beggared millions.
But he said actions undertaken against YUKOS, headed by Russia's richest man Mikhail Khodorkovsky, were "barbaric". Prosecutors had failed to abide by the law and were "doing a great disservice to all Russian citizens".
"I believe urgent measures must be taken to stabilise the situation," he said. "YUKOS is not at issue here. We are talking about the Russian economy, which is stagnant and going nowhere."
Zyuganov said the legal action was linked to YUKOS "speaking of their political interests in addition to economic interests", a reference to Khodorkovsky's backing for liberal parties running against Putin's allies.
Some press reports have suggested that Khodorkovsky provided financial backing for the Communists, but he has denied this.
Zyuganov said his party, with highly efficient Soviet-era structures, would campaign in December's parliamentary election on a pledge to lessen reliance on oil and gas. These policies, he said, were likely to attract support from Russian business.
"None of our entrepreneurs wants a police state. Nothing is guaranteed in it for them...Therefore they, too, will this time actively support our broad...union headed by the Communist Party," he said.
Russia's rebirth, he said, needed "a multi-faceted economy, with resources and other main sectors under state control. This is the option we are proposing and we are sure that big capital producers will be among those supporting it."
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