A close aide to ultranationalist Vladimir Zhirinovsky announced Thursday that he had been dispatched by his party to help newly elected deputy Sergei Mavrodi form a new faction in the State Duma.


Mavrodi, of MMM pyramid scheme fame, has said does not plan to attend many Duma sessions. But even before his election last month in the Khimki district north of Moscow, he spoke of his intention to form the People's Capital faction.


On Thursday, Alexei Mitrofanov, the foreign minister in Zhirinovsky's shadow cabinet, said he would help Mavrodi put the faction together.


Mitrofanov declared 16 deputies had already agreed to join the faction, dedicated to the protection of shareholders in schemes like MMM against government interference. A faction needs 35 members to register.


"People's capital is not bureaucratic capital, amassed because of someone's closeness to power," Mitrofanov and Mavrodi said in a joint statement. "People's capital is accumulated crumb by crumb, ruble by ruble. It has to be protected."


After his election, Mavrodi announced the suspension of all shares previously issued by his company until next year. Angered by the move, investors burned the shares and chanted "Thief!" and "Swindler!" as Mavrodi failed to appear.


The new faction leader did not show up at Thursday's press conference either.


Mitrofanov said he was not quitting Zhirinovsky's Liberal Democratic Party and that he had the party leader's blessing to assist Mavrodi.