Abstract

Yukos is one of Russia’s largest and fastest growing, publicly traded, and fully integrated petroleum companies. Under the leadership of Mikhail Khodorkovsky, it has become Russia’s second largest oil corporation implementing global best practices such as: good corporate governance and transpa-rency, improving efficiency and performance, and creating value for its shareholders, customers and employees. But in mid- 2004, the Arbitration Court of Moscow ordered Yukos to pay RUR 99.3 billion, or about $3.4 billion for the taxes and penalties that were unpaid in 2000. Most of Yukos’ assets and major subsidiaries have been frozen. This has pushed Yukos into a liquidity crisis. Many analysts perceive the move as a politically motivated Kremlin attack against oligarchs. The case discusses in detail the crisis facing Yukos against the backdrop of Russia under the leadership of Putin.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

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Keywords

Tax payments, Politics, Accounting, Yukos, Khodorkovsky, Platon Lebedev, Menatep Bank, Russian oligarchs, Roman Abramovich, Apatit, Russian oil industry, Vladimir Putin, YukosSibneft, Kremlin, Capitalism