The Embassy of Russia this afternoon said that allegations that Russia had in some way been involved in the Egrant story are "unfounded and untrue".

In a statement, the Embassy of the Russian Federation to the Republic of Malta said it "categorically rejects the recent allegations against our country as absolutely unfounded and untrue".

"Russia has never interfered into Malta's domestic affairs and has no intention to do so in the future.

"All questions regarding these allegations should be addressed to the so-called 'security services of allied countries' that spread this fake information."

Prime Minister Joseph Muscat yesterday said, in response to a press question, that he was informed by security service agencies from allied countries that the Egrant whistleblower story was invented by the Russians as payback for Malta's decision to refuse entry to a Russian naval refuelling tanker taking part in the Syrian conflict. Dr Muscat had said that the Maltese government did not have any proof of this.

Allegations were made by a whistleblower who worked at Pilatus Bank that Michelle Muscat is the owner of a company named Egrant which was opened in Panama. A magisterial inquiry has been launched, and a Russian whistleblower has come forward on the issue. The whistleblower has repeated her claims in an interview with The Malta Independent on Sunday and later on INDEPTH.

Asked earlier today whether he believes in this Russian connection, Dr Muscat said that he was alerted to the situation. It's not a situation that should lead to jokes or speculation, he added. He would not be drawn into saying, yes or no, whether he believes the Russian connection to be true.