 The history of the oil company “YUKOS” is closely connected with Michael Borisovich Khodorkovsky. The company has been created in 1993 when M.Khodorkovsky held a post of the deputy minister of fuel and power of Russia.
In 1995 “YUKOS” during mortgaging auctions has been privatized by bank “Menatep”, created by M.Hodorkovsky. After “YUKOS” transition under control of “Menatep”, M.Khodorkovsky has headed the oil company. |
Under control of M.Khodorkovsky “YUKOS” has shown very high rates of development. The company effectively operated monetary streams and skillfully optimized the taxation. Presence of available assets has allowed to get new actives thanks to the fact that in 2003 “YUKOS” has won first place in Russia on oil recovery, having pressed “LUKOIL”.
In 2003 M.Khodorkovsky has been arrested on charge in plunder of the another’s property, evasion from payment of taxes and a number of other crimes.
After M.Khodorkovsky’s arrest the Ministry of Taxes and Tax Collection has raised investigation concerning evasion ?? “YUKOS” from payment of taxes. The companies have been shown huge claims, which it couldn’t extinguish. In 2004-2007 sale of actives of “YUKOS” was spent. “Rosneft” and “Gazprom” became the basic buyers.
After sale of all actives the company has disappeared. The collected means has sufficed on payment approximately 2/3 from an amount of debt. As the debts are extinguished not fully, shareholders of the company haven’t received anything.
Company privatization
In 1993-1995 the company was under the influence of the general economic recession in Russia that was characteristic for all oil branch of the country. By the end of 1995 the debt of “YUKOS” to the budget has exceeded $1 billions, and the Russian government has made the decision to sale of the state share holding.
The winner of mortgaging auction and investment competition had been recognized firm “Lagoon” which belonged to bank “Menatep”.
Central office of Yukos
For all share holding exposed on auction, the Russian budget has received 606,4 million roubles.
After auction carrying out, in state ownership doesn’t remain any action of “YUKOS”.
Trial delivery of oil in the USA
In May, 2002 “YUKOS” has spent trial delivery of the Russian oil to the American market. Complexity of development of the American market for the Russian companies consists in delivery of oil to big distances what can be economically justified only at use of tankers by load-carrying capacity of 300 thousand tons. Russia has no ports for service of heavy-tonnage vessels, moreover, such ports don’t present in territories of the adjacent countries.
For overcoming of this problem “YUKOS” used the lichterage scheme of loading of the large-capacity tanker. In the Black Sea ports “YUKOS” oil has been passed on three tankers by load-carrying capacity of 80 thousand tons. Tankers simultaneously left Novorossisk, Tuapse and Feodosiya, had overcome Bosporus and had met in the Mediterranean sea near the coast of Greece. In their set point the tanker chartered by “YUKOS” load-carrying capacity of 2 million barrels waited.
An entrance to the international financial market
In 2002 “Menatep” group placed 1 % actions of the oil company of in the form of American deposit receipts of the first level. The gain from realization ADR has made $147 million before an entrance to the international market/ “YUKOS” has published the balance sheet for three quarters of the last year, executed according to standard GAAP.
Indicators of the companies work reflected in balance, estimated by investors as positive owing to the fact that the demand for “YUKOS” papers have exceeded twice the offer.
“YUKOS” and “Sibneft” association
In April, 2003 ?? “YUKOS” and the basic shareholders “Sibneft” have reached agreements on association of the companies. The incorporated company has received the name “JukosSibneft”. It was supposed that it will be headed by chairman of the board “YUKOS” Michael Khodorkovsky, and the president of “Sibneft” Evgenie Shvidler will hold a post of the chairman of board of directors. According to arrangements, “YUKOS” will get a share holding making 20 % of a share capital of “Sibneft” a minus one action at the price of $3 billions in exchange for the actions, making to 26,01 % of a share capital of company ” JukosSibneft “. Purchase and an exchange of actions was planned to finish till December, 31st, 2003.
Transaction rupture on association with “Sibneft”
On November 28th, 2003 at the meeting of the shareholders of “YUKOS” it has been declared the termination of process of association. The initiative on transaction cancellation proceeded from shareholders of “Sibneft”. In their opinion, for time last from the moment of the conclusion of the transaction, “YUKOS” position has changed considerably negatively. In connection to this the shareholders of “Sibneft” intend to refuse association with “YUKOS” to minimize negative influence on the actives belonging to them.
Michael Khodorkovsky’s arrest
On October, 25th, 2003 at Novosibirsk airport Tolmachyovo Michael Khodorkovsky occupying a post of the chairman of the board “YUKOS” has been arrested. This day M.Khodorkovsky has been delivered to Moscow where the State Office of Public Prosecutor of the Russian Federation has brought its accusation under 6 articles of the criminal code of Russian Federation.
Michael Khodorkovskiy arest
On October, 30th the State Office of Public Prosecutor of the Russian Federation has seized actions “YUKOS” belonging Yukos Universal Limited and Hully Enterpirses and components about 53 % from an authorized capital stock of the oil company.
On November 4th M.Khodorkovsky has resigned from a post of chairman of the board “YUKOS”.
Tax claims
On November, 19th, 2004 “YUKOS” has received the certificate of tax check for 2003 with the sum of claims 169,9 billions roubles. The total sum of debts of “YUKOS” under taxes for 2000-2003 has exceeded 582 billions roubles, and taking into account the claims shown to affiliated companies and executive gathering has made 703,1 billions roubles.
So high size of claims is caused by unprecedented level of penalties. Requirements to YUKOS consider the penalty at a rate of 80 % from the basic amount of debt whereas in usual practice the penalty doesn’t exceed 20 % of a debt. Motivation of the Ministry of Taxes and Tax Collection is the following: for deliberate non-payment of taxes the penalty sum is increased from 20 % to 40 %, and for that that the company already was made answerable for a similar offense, the penalty is increased still twice – to 80 %.
The volume of tax loading “YUKOS” for 2000 has made, taking into account the tax claims shown to the company lately, $6,1 billions at a gain in $9,0 billions and net profit $3,7 billions.
For 2001 the total amount of tax loading has reached $9,5 billions at a gain of $9,5 billions and net profit $3,2 billions.
In 2002 tax loading “YUKOS” has made $11,9 billions at a gain of $11,4 billions and net profit $3,1 billions.
Default
In July, 2004 the consortium of banks-organizers of the syndicated credit for $1billion into which enter Societe Generale, Citigroup, Commerzbank, Credit Lyonnais, Deutsche Bank, HSBC and ING, has shown “YUKOS” the notice on a default.
In December, 2004 agency Standard&Poor’s has lowered long-term corporate credit rating “YUKOS”, and also a rating of obligations to banks with CC to D.
Change of the management structure
In the end of 2004 the control system of the company became close to full defeat.
Only four from the basic shareholders of “YUKOS” for this moment remained in Russia and weren’t exposed to suit. It is Sergey Muravlenko, Victor Ivanenko, Victor Kazakov and Yury Golubev. Other principal shareholders of the company were or in prison (Michael Khodorkovsky and Platon Lebedev), or abroad (Leonid Nevzlin, Vladimir Dubov, Michael Brudno, Alexey Golubovich), or have already been condemned (Vasily Shahnovsky).