Yukos Oil Company (ОАО НК ЮКОС) is a petroleum company in Russia which, until recently, was controlled by Russian billionaire Mikhail Khodorkovsky and a number of prominent Russian businessmen. Khodorkovsky has been imprisoned, and others have fled Russia. Its headquarters are located in Moscow. Image File history File links Download high resolution version (1700x1700, 15 KB) File history Legend: (cur) = this is the current file, (del) = delete this old version, (rev) = revert to this old version. ... Nodding donkey pumping an oil well near Sarnia, Ontario Petroleum (from Greek petra – rock and oleum – oil), crude oil, sometimes colloquially called black gold, is a thick, dark brown or greenish liquid. ... A billionaire is a very wealthy person, one who has a net worth over 1,000,000,000 US Dollars, Euros or comparably valued currency, or over 1,000 times the net worth of a millionaire. ... Mikhail Borisovich Khodorkovsky (Михаи́л Бори́сович Ходорко́вский born June 26, 1963) is a Russian businessman. ... Set out below is an annotated listing of corporate leaders, who are or have been the head of large or successful business enterprises, or who are otherwise well known for their commercial acumen, listed alphabetically by last name. ... Moscow (Russian: Москва́, Moskva, IPA: â–¶(?)) is the capital of Russia, located on the river Moskva. ...

Background

Yukos was one of the world's largest non-state oil companies, producing 20% of Russian oil—about 2% of world production. Its assets were acquired in controversial circumstances from the Russian Government during the privatization process of the early 1990s. The initial period of "oligarchic privatization" was characterized by bloodshed, and Yukos was certainly no exception. Alexei Pichugin, the former Security Chief of Yukos, has been convicted on multiple counts of murder ([1]) and attempted murder, and is now under investigation along with Yukos partner Nevzlin for the shooting death of Vladimir Petukhov, the mayor of the Yugansk oil province and a vehement opponent of Yukos, on Mr. Khodorkovsky's birthday in 1998. Privatization (sometimes privatisation, denationalization, or, especially in India, disinvestment) is the process of transferring property, from public ownership to private ownership and/or transferring the management of a service or activity from the government to the private sector. ... The 1990s refers to the years 1990 to 1999; the last decade of the 20th Century, but in an economical sense The Nineties is often considered to span from the fall of the Berlin Wall in November 1989 to the September 11 attacks in 2001. ...

The company was created on April 15, 1993. Its Russian abbreviation ЮКОС comes from the names of the main entities that initially comprised the company: Юганскнефтегаз (Yuganskneftegaz: Nefteyugansk + petroleum + gas) and КуйбышевнефтеОргСинтез (Kuybyshevnefteorgsintez: Kuybyshev + petroleum + organical synthesis). April 15 is the 105th day of the year in the Gregorian calendar (106th in leap years). ... 1993 (MCMXCIII) is a common year starting on Friday of the Gregorian calendar and marked the Beginning of the International Decade to Combat Racism and Racial Discrimination (1993-2003). ... Nodding donkey pumping an oil well near Sarnia, Ontario Petroleum (from Greek petra – rock and oleum – oil), crude oil, sometimes colloquially called black gold, is a thick, dark brown or greenish liquid. ... This article is not about Samarra, which is in Iraq. ...

Initially Yukos was created by the decree #354 of the Russian government comprised of the following enterprizes: a Western Siberian oil extraction enterprize Yuganskneftegaz and oil refineries in Samara Oblast: Novokuybyshev HPZ, Kuybyshev NPZ and Syzran NPZ (NPZ stands for NeftePererabatyvayushchy Zavod, literally "petroleum processing plant"). View of the Shell/Valero Martinez oil refinery An oil refinery is an industrial process plant where crude oil is processed and refined into useful petroleum products. ... Samara Oblast (Russian: ) is a federal subject of Russia (an oblast). ... This article is not about Samarra, which is in Iraq. ... Syzran (Сы́зрань) is a town in Samara Oblast, Russia. ...

In 1995, by the decree #864 of the Russian government, Samaraneftegaz joined Yukos.

The main stockholders own the company via the offshore holding company Menatep. Offshore may refer to oil and natural gas production at sea, see oil platform. ... A holding company is a company that owns enough voting stock in another firm to control management and operations by influencing or electing its board of directors. ...

In April 2003, Yukos agreed to a merger with Sibneft, but the merger was soon undone in the aftermath of the arrest of Yukos CEO Khodorkovsky in October, 2003. Sibneft (Сибне́фть in Russian) is Russias fifth largest oil producing and refining company. ...

Tax claims

In July 2004, Yukos was charged with tax evasion, for an amount of over US$7 billion. The Russian government accused the company of misusing tax havens inside Russia in the 1990s so as to reduce its tax burden; havens were set up by most major oil producers in outlying areas of Russia which had been granted special tax status to assist in their economic development; such "onshore-offshore" were used to evade profit taxes, resulting in Yukos having an effective tax rate of 11%, vs a statutory rate of 30% at the time. Yukos claims its actions were legal at the time. Yukos subsidiaries also declared the oil they produced to be "oil-containing liquids" [2] to avoid paying full taxes. The United States dollar is the official currency of the United States. ... A tax haven is a place where certain taxes are levied at a low rate or not at all. ... The 1990s refers to the years 1990 to 1999; the last decade of the 20th Century, but in an economical sense The Nineties is often considered to span from the fall of the Berlin Wall in November 1989 to the September 11 attacks in 2001. ...

In a move to prevent bankruptcy, management made a friendly offer to the government to pay 8 billion dollars in a period of three years.

A management presentation from December 2004 shows that the tax claims put the "total tax burden" for 2000, 2001, 2002, and 2003 at 67%, 105%, 111%, and 83% of the company's declared revenue during those years ([3]). As a comparison, the annual tax bill of Gazprom is about $4 billion on 2003 revenues of $28.867 billion. Management (from Old French ménagement the art of conducting, directing, from Latin manu agere to lead by the hand) characterises the process of leading and directing all or part of an organization, often a business, through the deployment and manipulation of resources (human, financial, material, intellectual or intangible). ... In business, revenue is the amount of money that a company actually receives from its activities, mostly from sales of products and/or services to customers. ... Gazprom (Cyrillic Газпром, sometimes transcribed as Gasprom) is the largest Russian company and the biggest natural gas extractor in the world. ...

Bankruptcy

On 15th December, based on a bank deposit of $4M and its American CEO's Houston home, Yukos filed for bankruptcy protection in the United States, estimating its assets at $12.3 billion and its debts at $30.8 billion, including "alleged taxes owed to the Russian government". It accused the Russian authorities of "an unprecedented campaign of illegal, discriminatory, and disproportionate tax claims escalating into raids and confiscations, culminating in intimidation and arrests". After several weeks of deliberation, the Houston court declared that under no conceivable theory could Yukos assert domicile in the US.

Forced sale of assets

The high-profile arrest of Khodorkovsky is widely believed to have been due to his activism in the Russian political process. Yukos/Menatep widely believed to have bought a substantial fraction of Duma deputies, with which they were seeking to block any tax legislation not favorable to the oil companies. On October 31, 2003, shortly after the arrest of the company's CEO, the Russian government froze ownership of 44% of the company's shares. The reason given was to prevent a group of shareholders led by Khodorkovsky from selling large stake of the company to the US oil firm Exxon. Since gaining its independence with the collapse of the Soviet Union at the end of 1991, Russia (formally, the Russian Federation) has faced serious challenges in its efforts to forge a political system to follow nearly seventy-five years of Soviet rule. ... October 31 is the 304th day of the year (305th in leap years) in the Gregorian Calendar, with 61 days remaining, as the final day of October. ... 2003 (MMIII) was a common year starting on Wednesday of the Gregorian calendar. ...

A Yukos shareholders' meeting scheduled for December 20, 2004 is to discuss a "crisis plan". A Russian company must hold such a meeting before it can apply for bankruptcy in Russia. The Russian Government sold Yukos' main production unit, Yuganskneftegas, at auction on December 19, 2004 to recover some of $28 billion in alleged tax debts, following the loss of an appeal by the firm. December 20 is the 354th day of the year (355th in leap years) in the Gregorian calendar. ... 2004 (MMIV) was a leap year starting on Thursday of the Gregorian calendar. ... December 19 is the 353rd day of the year (354th in leap years) in the Gregorian calendar. ... 2004 (MMIV) was a leap year starting on Thursday of the Gregorian calendar. ...

Menatep, the company representing Mikhail Khodorkovsky, promised to challenge the sale's legality in a number of countries, and to sue the buyer and any company helping to fund the deal. The expected buyer was the 38% Russian state owned company OAO Gazprom. Some European and American oil firms have decided not to bid. Bank Menatep was a privately owned bank created by Mikhail Khodorkovsky. ... Gazprom (Cyrillic Газпром, sometimes transcribed as Gasprom) is the largest Russian company and the biggest natural gas extractor in the world. ...

On December 19, 2004, the Baikalfinansgroup won the auction for YUKOS's subsidiary Yuganskneftegas with a 260.75 billion rubles ($9.4 billion) bid. Yuganskneftegas was a few months earlier valued to between $15 billion and $17 billion by DrKW which the Russian government hired to value the subsidiary. December 19 is the 353rd day of the year (354th in leap years) in the Gregorian calendar. ... 2004 (MMIV) was a leap year starting on Thursday of the Gregorian calendar. ... Baikalfinansgroup (Russian: Байкалфинансгруп) is a Russian energy group that won the December 19, 2004 auction for a 76. ... In business, a subsidiary is a company controlled by another, usually large—and often multinational—company or corporation. ... Yuganskneftegaz is the second largest oil production complex in all of Russia. ... 1998 Russian Federation one rouble coin. ... Dresdner Kleinwort Wasserstein (DrKW) is the investment banking arm of the German retail bank Dresdner Bank itself owned by Allianz Group. ...

Suggested financiers to the Baikal Finance Group are Gazprom, Sberbank, the Russian central bank, China National Petroleum Corporation, ONGC (India). The reason for this arrangement may be that Gazprom fears international legal action against it after a Houston, Texas court ruling that barred Gazprom from bidding for the unit. This ruling was subsequently vacated. Financier (IPA: /ˌfi nãn ˈsjei/) is an elegant term for a person who handles large sums of money, usually involving money lending, financing projects, large-scale investing, or large-scale money management. ... Sberbank is the largest bank in the Russian Federation. ... Bank of Russia (Russian:Банк России) or The Central Bank of the Russian Federation (Russian: Центральный банк Российской Федерации) is a Central bank of Russia. ... This article lacks information on the importance of the subject matter. ... ONGC (Oil and Natural Gas Corporation Limited) (incorporated on June 23, 1993) is a public sector petroleum company in India. ... Gazprom (Cyrillic Газпром, sometimes transcribed as Gasprom) is the largest Russian company and the biggest natural gas extractor in the world. ... Downtown Houston City nickname: Space City Official website: www. ...

According to people familiar with the auction only two bidders registered for, and were present during, the auction process: Baikalfinansgroup and Gazprom's oil unit Gazpromneft. Accounts from the auction say that the first bid of $8.6 billion came from Baikal. When the auctioneer asked Gazpromneft to offer its price, a representative of the company asked to make a telephone call and left the room. A few minutes earlier, the auctioneer had told participants that using a mobile phone or leaving the room was against the rules. When a Gazpromneft representative returned to the room, Baikal made a bid of $9.3 billion. Gazpromneft never placed a bid or spoke out. An auctioneer and her assistants scan the crowd for bidders An auction is the process of buying and selling things by offering them up for bid, taking bids, and then selling the item to the highest bidder. ... Baikalfinansgroup (Russian: Байкалфинансгруп) is a Russian energy group that won the December 19, 2004 auction for a 76. ... Gazprom (Cyrillic Газпром, sometimes transcribed as Gasprom) is the largest Russian company and the biggest natural gas extractor in the world. ...

Management

• CEO: Steven M. Theede
• CFO: Bruce K. Misamore

By mid-December, 2004, all members of the board of Yukos, and most of the company's senior managers, had left Russia, some of them because of "fear of arrest" after being "summoned for questioning by prosecutors" ([4]). According to a December, 2004, Houston, Texas court filing the CFO resides in Houston. According to a company spokeswoman the CEO resides in London, UK as of December, 2004. A chief executive officer (CEO) or chief executive is the highest-ranking corporate officer or executive officer of a corporation, company, or agency. ... For other uses of the abbreviation CFO see CFO (disambiguation) The Chief Financial Officer (CFO) of a company is the corporate officer primarily responsible for managing the financial risks of a business (see External Link below). ... Downtown Houston City nickname: Space City Official website: www. ... Part of the London skyline viewed from the South Bank London is the most populous city in the European Union, with an estimated population on 1 January 2005 of 7. ...

According to the Moscow Times of Friday, February 4, 2005. Issue 3099, Page 5, Mikhail Brudno and Vladimir Dubov fled to Israel in 2003, and were seen on February 2, 2005 in Washington, D.C. at an official function of George W. Bush. [5] Both men are cited in an international arrest warrant regarding their involvement in the Yukos tax case. Leonid Nevzlin, also in Israel, is sought on several counts of murder and attempted murder. February 4 is the 35th day of the year in the Gregorian Calendar. ... 2005 (MMV) was a common year starting on Saturday of the Gregorian calendar. ... February 2 is the 33rd day of the year in the Gregorian Calendar. ... 2005 (MMV) was a common year starting on Saturday of the Gregorian calendar. ... George Walker Bush (born July 6, 1946) is the 43rd and current President of the United States. ...

See also

• Baikalfinansgroup
• Bank Menatep
• Eminent domain
• Oil price increases of 2004

Baikalfinansgroup (Russian: Байкалфинансгруп) is a Russian energy group that won the December 19, 2004 auction for a 76. ... Bank Menatep was a privately owned bank created by Mikhail Khodorkovsky. ... Eminent domain (US), compulsory purchase (Great Britain, New Zealand), compulsory acquisition (Australia) or expropriation (Canada, South Africa) in common law legal systems is the power of the state to appropriate private property for its own use without the owners consent. ... The price of light, sweet crude oil on NYMEX has been above $40/barrel since late July 2004. ...

External links

• YUKOS
  • Board Of Directors
  • Management
  • Ownership
• ЮКОС | Yukos.Ru

Data

• Yahoo! - OAO NK YUKOS Company Profile

Articles

• Khodorkovsky verdict: Business views Browder and Kraus
• FT.com / Industries / Energy & mining - Mysterious bidder pays $9.4 billion for Yukos unit
• Analysis: Gazprom's losing bid for Yukos? - (United Press International)
• Knight Ridder: Russia's dismantling of Yukos seen as part of a troubling trend
• Arrested oil tycoon passed shares to banker