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Euroset mobile phone retailer to challenge smuggling claims

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MOSCOW, September 3 (RIA Novosti) - Euroset, Russia's largest mobile handset retailer, is set to challenge prosecutors' claims of smuggling and the alleged kidnapping and extortion by one of its employees, the company's co-owner said on Wednesday.

Investigators at the Russian Prosecutor General's Office have detained two suspects in the Euroset case, spokesman Vladimir Markin was quoted as saying on Wednesday.

Markin said a Euroset official committed "a criminal act" against a former company employee in 2003.

The company was accused of smuggling in 2005, when 200,000 handsets were seized at Sheremetyevo airport.

Artemyev said he was surprised at the reports and denied both allegations.

"We are a large company and do not resort to such methods," the businessman said.

The police conducted a search of Euroset's central office on Tuesday. The company's top managers were absent from Moscow.

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