An adviser to the last Soviet president, Mikhail Gorbachev, has denied media reports that Mr Gorbachev is near bankruptcy.

He confirmed that some eighty- thousand dollars of Mr Gorbachev's own money and most of his research foundation's funds had been frozen in an ailing Russian bank.

In an interview with Reuters news agency, the adviser Pavel Palazchenko said the former Soviet leader was working to recoup the money, which was just part of his savings.

Mr Gorbachev, who earns sizeable fees for lectures in the United States, has just published a new book on Soviet history.