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By Jennifer Williams

Addressing the issue of corruption at a G8 press conference, President Putin remarked that he would be interested in hearing Mr. Blair’s experience, "including how it applies to Lord Levy".


According to the Moscow Times, the reference to the ongoing UK "cash for honours" scandal was "a friendly poke". In the UK, the Daily Mail saw it differently, its headline reading "Putin Twists Knife".

The scandal, in which Mr Blair’s personal Middle East Envoy and chief party fundraiser Michael Levy was arrested in connection with the alleged selling of peerages, has attracted extensive press coverage around the world, and prompted speculation that Mr Blair could himself be questioned.

The Kuwait News Agency reports that John Austin, chair of the cross-party parliamentary group for Euro-Arab co-operation, has said that Levy "should be sacked as Middle East Envoy". The BBC believes the arrest comes as "no surprise" to those who have followed the story since it originated in March, when questions over Labour party funding first hit the headlines.

Levy, who is often referred to in the British media as "Lord Cashpoint", thanks to his knack for eliciting donations, was later released without charge.