Abstract

Mikhail Khodorkovsky, once the wealthiest man in Russia and one of the wealthiest in the world, has seen much of his wealth evaporate due to the collapse of the Russian petroleum company, Yukos. On 25th October 2003, Khodorkovsky has been arrested by the Russian prosecutor general's office on charges of tax evasion. On 31st October, the government has frozen the shares of Yukos. The Russian Government indicates that it will sell major assets of Yukos. Khodorkovsky's supporters feel Putin's actions are a retaliation for the former's support of political groups that oppose the government's policies. Meanwhile, Khodorkovsky's opponents believe that he has to answer for wrong doing related to the privatization of state assets during the 1990s. On 31st May 2005, following a trial in a Moscow court to examine charges of fraud, tax evasion, embezzlement and running a criminal organization, Khodorkovsky is sentenced to nine years of imprisonment. In addition, the court orders Khodorkovsky, along with co-defendant and colleague Platon Lebedev, to pay 17.4 billion rubles ($619 million) in civil damages and penalties. Some analysts feel the Kremlin has underestimated the economic impact of its grudge against the tycoons. They feel the forces unleashed by the Yukos affair may be beyond Putin's control. How will the events unfold?

Learning Objectives

The case is structured to achieve the following Learning Objectives:

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Keywords

Mikhail Khodorkovsky, Russian Oligarch's, Khodorkovsky's Arrest, Yukos, Platon Lebedev, Putin, Bush, Kremlin, Moscow court and Investigations and legal action