Forbes will have to pay $4,000 in compensation to Yelena Baturina for defaming her in a story that suggested she profited from political connections.
MOSCOW: A Moscow court on Wednesday ordered Forbes magazine to pay just over $4,000 in compensation to Russia's richest woman for defaming her in a cover story that suggested she profited from political connections.
Yelena Baturina, who is married to Moscow's powerful mayor Yuri Luzhkov and has a fortune estimated at over $3 billion, sued the magazine through her company, arguing the story was incorrect and damaged her business reputation.
After a hearing that lasted just a few hours, Moscow's Chertanovo court issued a ruling ordering Maxim Kashulinsky, editor of Forbes' Russian edition, to pay 106,500 roubles ($4,090) to Baturina's firm Inteko.
The magazine had "distributed information defaming Inteko's business reputation," the judge said in the ruling.
"I am not satisfied with the court's decision. We are going to appeal it. Our lawyer told me the judge did not even allow our side to explain our position," Kashulinsky said.
Inteko said before the court hearing it was seeking $8,100 from the magazine and its editor. But a lawyer for the company said it was vindicated by Wednesday's ruling.
"In essence, the court has satisfied all our demands," said Pavel Astakhov. "It is a clear decision which shows that (for the media) there is not absolute freedom but freedom within the framework of the law."
Luzhkov and Baturina are widely seen as Russia's most powerful couple. Luzhkov, a popular and feisty 70-year-old who wears a trademark leather cap, has huge power in the Russian capital and has overseen a massive building boom.
His wife of 15 years runs a company with interests from petrochemicals to construction. Its headquarters are a short walk from the mayor's office in central Moscow. The US edition of Forbes magazine this month estimated her fortune at $3.1 billion in its latest global rich list.
The Forbes article said Baturina was re-organising her business interests in preparation for her husband's retirement. He is expected to step down within the next 12 months.
Baturina, her company and her husband have always strenuously rejected suggestions that her businesses have benefited from Luzhkov's influence.
Investment analysts say Russia's economy as a whole is still heavily influenced by the state and that good relations with the authorities are a crucial factor for business success, particularly in the energy sector.
The Forbes cover story was troublesome for the magazine and its publisher, German media company Axel Springer, even before it appeared in print.
The publisher initially decided not to publish the December edition that contained the story on Baturina after seeing a draft.
Kashulinsky tendered his resignation in protest and said the publisher was bowing to threats of legal action from Inteko. Axel Springer later reconsidered and printed the magazine with the cover story on Baturina essentially unchanged.
Kashulinsky's predecessor at the magazine's Russian edition, US citizen Paul Klebnikov, was shot dead as he left his office in 2004. No one has been convicted for his murder.
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