Yukos oil company notice of distribution pr newswire. Oil giant yukos and the struggle for russian energy sources by ulrich rippert 10 january 2005 on december 23, the american government renewed its. The arrest of mikhail khodorkovsky, the oil magnate who is russias richest man, is a turning point in russias postsoviet history. Mass communications international relations confiscations laws, regulations and rules private banking tax havens tax policy. Analysis a lifetime of litigation the fall of yukos seven years have passed since russia began the campaign against yukos oil company that led to the renationalisation of a business controlling. Congress has been very generous in its support of our effort to give russias next generation of leaders a brief but intensive professional and personal. It may earn mr medvedev either a place in history or a footnote in the story of his predecessor, vladimir putin. Yukos commented on its web site that, we can only assume that this action against him is a direct result of his accepting a position to work to protect yukos oil company and its legitimate stakeholders. Sakwa analyses russias emergence as an energy superpower, and considers the question of the natural resource curse and the use of energy rents to bolster russia as a great power and to maintain the autonomy of the regime. Yukos was acquired from the russian government by russian oligarch mikhail khodorkovskys bank menatep during the controversial loans for shares auctions of the mid 199. Yukos was one of the worlds largest nonstate oil companies, producing 20% of russian oil about 2% of world production.
The notorious yukos oil company case, which has been ongoing since early. Russia prides itself as one of the largest producers and exporters of oil in the world, providing nearly 12 percent of the global supply. Mr khodorkovsky is questioned and released two days later. Between 1996 and 2003 yukos became one of the biggest and most successful russian companies, producing 20% of russias oil output. Mikhail khodorkovsky, the head of the yukos oil company, was arrested on 25 october 2003. It absorbed most of yukoss valuable assets after the yukos founder was arrested in 2003. Yuko yukos between february, 2003 and october 25, 2003 inclusive, the class period. History of the world petroleum industry key dates a chronological summary of some of the key events impacting the evolution of the world petroleum industry, significant world events that had a major impact on the oil industry are indicated in dark red. At that time khodorkovsky was one of the worlds richest and most powerful men, while yukos had been transformed into a vast and lucrative oil company that was set to go global. Russias mikhail khodorkovsky put on international wanted.
The decision ends a threeyear court battle for survival, after yukos was hit with a huge back tax bill. Menatep, which owns 60pc of yukos shares, has threatened to sue anyone who buys yugansk. After yukos was bankrupted, khodorkovsky was convicted and sent to prison. Written by martin sixsmith, former bbc moscow correspondent, this book focuses on mikhail khodorkovsky, owner of yukos, once the countrys oil firm and considered the key to russias economy.
Ojsc yukos oil company was an oil and gas company based in moscow, russia. Funds were disbursed through philanthropic programmes and competitive grant programmes in a wide variety of educational, cultural, and social spheres. A case study of success and failure in an unstable institutional environment article pdf available in journal of change management 103 september 2010 with 1,204. His wheel of fortune stands out amid a series of recent books on russia, combining meticulous. With unparalleled insight into bp and its safety record leading up to the disaster in the gulf of mexico, tom bower gives us a groundbreaking, indepth, and authoritative twentyyear history of the hunt and speculation for our most vital natural resource. Money, politics, and power in the 21st century by tom. The yukos affair and the struggle for russia sixsmith, martin on. From november 18 to 20, 1908, rockefeller gave three days of court testimony. Yukos saga continues as largest arbitration awards in history are set aside. Although almost one hundred years apart, the standard oil and yukos cases are comparable in so far as they erupted in the context of early capitalism in a weak institutional environment. Menatep increases control of yukos to more than 90 per cent. With holdings in numerous sectors of the oil industry, the company accounts for 15 percent of oil produced and 15 percent of oil refined in russia, and also operates a domestic retail network of approximately 1,200 gas stations.
At the time, yukos did not look to be such a wonderful deal. This case presents the history and current position of russias secondlargest oil company, yukos, as it seeks listing on the nyse as an adr and attempts to rid itself from a punishing governance discount by the capital markets. The arrest of mikhail khodorkovsky, the head of the yukos oil company, on 25 october 2003, was a key turning point in modern russian history. Standard oil and yukos in the context of early capitalism in. Yukos investors settle with rosneft, russias state oil. Oao nk yukos is the second largest of russia s integrated oil companies, with an estimated 11. Billington, who is a prominent scholar of russian history and culture.
From being one of the worlds richest and most powerful men, khodorkovsky became putins prisoner. By that time khodorkovsky had become one of the worlds richest and most powerful men, while yukos had been transformed into a verticallyintegrated oil company that was set to go global. Four years ago, the hague district court gave an unexpected twist to the dispute between russia and shareholders of the former oil company yukos, setting aside the 50 billion usd awards issued by an investment arbitration tribunal under the auspices of the pca on grounds of russias breach of the expropriation clause of the energy charter treaty ect. The company had become the secondlargest taxpayer in russia after the state gas monolith gazprom, contributing 4. Welcome to the yukos claims administration website. In this book, richard sakwa examines the rise and fall of yukos, and the development of the russian oil industry more generally. The saga has seen former yukos chief mikhail khodorkovsky jailed and parts of the oil firms empire sold off.
The case marked the rise of the newly elected russian president vladimir putins regime, and heralded much of what would become the hallmark of putins rule. Published in october 20 in the book, mikhail khodorkovsky draws. What a shame the man responsible for its success was forced out and put sent to prison for what others. A new book tells the story of the oil industrys boombust cycle through the personalities of its main protagonists. Yukos oil company was a petroleum company in russia which, until recently, was controlled by russian billionaire mikhail khodorkovsky and a number of prominent russian businessmen. Russias mikhail khodorkovsky put on international wanted list the former ceo of russias yukos oil company has been arrested in absentia on charges of organizing murders. Russian tax authorities say they are to audit yukos s books, as the investigation into the apatit deal is dramatically widened. Two russian policemen pass by the yukos oil giants logo during the controversial auctioning of some of. Jun 19, 2015 the yukos arbitration decision in a nutshell. Control of mikhail khodorkovsky s shares in the russian oil giant yukos have passed to jacob rothschild, 4th baron rothschild upon his arrest. The khodorkovsky case a new moscow show trial europe. The yukos cases and the provisional application of the.
The saga is rooted in allegations made over a decade ago that officials had manipulated the legal system to bankrupt the yukos oil company and jail its boss mikhail khodorkovsky. Oxford university and coeditor of a book on russias postcommunist economy, pointed. The paper examines the two disparate approaches adopted by the. Mikhail khodorkovsky, the chair of yukos, then the largest oil company in russia, was arrested at gunpoint and imprisoned. Mar 10, 2015 following an introduction by harvard law school professor william alford 77, gaillard laid out the background to the case. Yukos claims asylum in texas the journal newcastle. At the centre of the controversy surrounding the reversal of awards in the yukos cases is the provisional application laid down in article 45 of the energy charter treaty ect, which allows a signatory to unilaterally undertake to give affirmative legal effect to the obligations under the ect on a voluntary and provisional basis. Uncertain future for american working at yukos houston. Apr 02, 2015 yukos investors settle with rosneft, russias state oil company a rosneft oil treatment plant. Thus began a massive attack against americas largest oil company and its owners. Taxation and expropriation the destruction of the yukos oil. In this book, the author examines the rise and fall of yukos and considers the relationship between putins state and big business during russias traumatic shift from the soviet planned economy to capitalism.
Yukos was acquired from the russian government by russian oligarch mikhail khodorkovskys bank menatep during the controversial loans for shares auctions of the mid 1990s. Two russian policemen pass by the yukos oil giants logo during the controversial auctioning of some of the companys key. Most of yukos was absorbed by what was once the runt of russias oil industry. On all counts, this looked like a success story for russia, but it was precisely at this moment that the. Mikhail khodorkovsky, the head of the yukos oil company, was. That has the kremlin apoplectic and threatening reprisals. The kremlins plan for a huge, bureaucratic state oil and gas corporation is far removed from khodorkovskys vision of yukos as a worldclass, transparent, publicly quoted oil company, working for profit, and willing and able to forge close links with the global oil companies. Russia are several international court and arbitral cases seeking compensation from the government of russia to the former shareholders of yukos based on the claim that russian courts were not acting in good faith in launching tax evasion criminal proceedings against yukos, which led to the bankruptcy of the company. Yet one event in russia during the early 2000s fell into this category. An american citizen, simon kukes, was named the new chief ceo of the russian oil company, yukos, after his predecessor was arrested on charges of tax evasion, embezzlement, and theft.
Putins oil relates vladimir putins war for control of russias vast oil reserves, in particular mikhail khodorkovskys oil firm, yukos. After two controversial trials, attracting widespread. The yukos affair and the struggle for russia and millions of other books are available for amazon kindle. We are trying to ensure that you do not put us in any trouble, and likewise, we shall provide you with an input as an entity with no history to the investment, only as a management consultant.
Russian history can be told largely as a series of false daw ns. When the yukos scandal first broke, foreign investors became wary that russia would begin rolling back privatization measures made during the 1990s. Everybody must be safe now and in the future, hence the questions. Feb 01, 2010 dont ask why i am interested in things that seem so distant from the daily life of most of us. Bbc news business yukos declared bankrupt by court. Taxation and expropriation the destruction of the yukos. In november 1909, the first court announced its decision to dissolve standard oil of new jersey, which standard oil immediately appealed to the u. Here is a short summary of the most important points of the yukos arbitration award which former shareholders are now trying to enforce in belgium, france and other european countries. Taxation and expropriation the destruction of the yukos oil empire. The arrest of mikhail khodorkovsky, the head of the yukos oil company, in october 2003, was a key turning point in modern russian history. Putins oil is the story of russias energy wars and their consequences for moscow and the world.
Yukos takes russia to human rights court in strasbourg. Troubled russian oil firm yukos has been declared bankrupt by a court in moscow, clearing the way for the firm to be liquidated. Platon lebedev, a major yukos shareholder, is arrested and accused of having illegally acquired shares in apatit, a fertiliser company, in 1994. The yukos group has been liquidating assets and pursuing various legal claims with the ultimate goal of making a series of cash distributions to former shareholders of yukos oil company. It is not everyday that a single legal dispute becomes a turning point in a countrys history, or perhaps a determining factor in how a regime transforms itself into an authoritarian kleptocracy. Yukos oil s leadership gift will help realize goals i have pursued while serving as librarian of congress, said dr. This can be explained by the fact that menatep also oversaw the bidding process and that the highest. With holdings in numerous sectors of the oil industry, the company accounts for 15 percent of oil produced and 15 percent of. The truth is that in this sense i may have been a little late or that i could say that i knew in advance the end theory of the book. Oil giant yukos and the struggle for russian energy. Fascinating historical book about the tragedy of yukos. Oct 19, 2004 leonard, vice president in charge of business development at yukos, staked his career more than 15 years ago on a dream to unlock vast oil reserves in the former soviet union, which are believed.
Yukos, the defunct russian oil giant whose dismantling a decade ago came to define a countrys flawed property rights system, announced on wednesday that it had reached a final legal settlement with rosneft, the state oil company that prospered from the breakup. A new hope for the yukos shareholders pca awards revived. The following month, it was reported that some individuals established themselves as the new management of yukos. However, recent history of the russian oil development reveals numerous challenges that, if not addressed properly, threaten to result in inevitable decline of the oil industry. Hadley began court hearings to prove that the standard oil company of indiana, the waterspierce oil company, and the republic oil company were parts of a single monopolistic conspiracy. The author compares two conflicts between large businesses and the state in the united states and russia. I have a very sensitive and confidentialbrief from this top.
Billington and mikhail khodorkovsky, yukos chairman and ceo, met today at the library to discuss the programs that yukos s gift will assist. It isnt always a flattering portrait, writes derek. Although menatep did not offer the highest bid, it nevertheless won the auction. London agence francepresse control of mikhail khodorkovskys shares in the russian oil giant yukos have passed to renowned banker the rt hon lord jacob rothschild, under a deal they concluded prior to mr. The yukos affair and the struggle for russia by martin. May, 2014 the arrest of mikhail khodorkovsky, the head of the yukos oil company, on 25 october 2003, was a key turning point in modern russian history. The net proceeds of the liquidation, less any reserves for expenses, will be deposited into the distribution fund. Whats really happening with the yukos case foreign policy.
This event proved a turning point for postcommunist russia and for vladimir putins presidency. On all counts, this looked like a success story, but it was precisely at. Standard oil and yukos in the context of early capitalism. Yukos and sibneft sign agreement to merge production operations into single. Oao yukos oil company case harvard business school. Its assets were acquired in controversial circumstances from the russian government during the privatization process of the early 1990s. A lawsuit seeking class action status has been filed in the united states district court for the southern district of new york on behalf of all persons who purchased the publicly traded securities of yukos oil company otc.
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