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MOSCOW -- Russia's Presidential Affairs Department says it will sue "Novaya gazeta" for a report the newspaper published about the alleged misuse of funds in building a government retreat in the Black Sea resort of Sochi, RFE/RL's Russian Service reports.

"Novaya gazeta" spokeswoman Nadezhda Prusenkova told RFE/RL on November 24 that the newspaper received a copy of the article and a note from Russian President Dmitry Medvedev to Prosecutor-General Yury Chaika ordering him to "sort out" the case.

The Presidential Affairs Department said it estimated the moral damage caused by the report to be some 1 million rubles ($31,000).

"Novaya gazeta" has announced that it is prepared to defend its investigative
report in court.

Read more in Russian here
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