Yukos was one of the worlds largest nonstate oil companies, producing 20% of russian oil about 2% of world production. Four longitudinal case studies of russian oil companies are drawn upon to explain the process of organisational transformation. He was a close business partner of khodorkovsky throughout the 1990s and today controls a 59. This event proved a turning point for postcommunist russia and for vladimir putins presidency. Oil giant yukos and the struggle for russian energy. Two russian policemen pass by the yukos oil giants logo during the controversial auctioning of some of. 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. 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. The paper examines the two disparate approaches adopted by the. On all counts, this looked like a success story, but it was precisely at. Yukos oil is expected to announce on tuesday that simon g. Mikhail khodorkovsky, the chair of yukos, then the largest oil company in russia, was arrested at gunpoint and imprisoned. Europe is indeed striking a belated blow for justice in a decadeold dispute over the dismantling of yukos, once russias biggest oil company. The institute of modern russia is committed to strengthening respect for human rights, the rule of law, and civil society.
Mikhail khodorkovsky, the head of the yukos oil company, was arrested on 25 october 2003. The notorious yukos oil company case, which has been ongoing since early. 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. The leader of the oligarchs is leonid nevzlin, who controls the yukos shareholdings through a web of offshore companies located in cyprus and isle of man. Russian tax authorities say they are to audit yukos s books, as the investigation into the apatit deal is dramatically widened. 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. 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. 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. Yukos saga continues as largest arbitration awards in.
To his credit,the author,in a textbook example of how journalism should be explores both points of view to the story as. 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. 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. Fascinating historical book about the tragedy of yukos. 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. Platon lebedev, a major yukos shareholder, is arrested and accused of having illegally acquired shares in apatit, a fertiliser company, in 1994. Mr khodorkovsky is questioned and released two days later. The legal implications of yukos s move remain unclear, however, as yukos has no significant us assets. 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.
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. The yukos oil companys former shareholders and management filed a series of claims in courts and before arbitration panels in various countries, seeking compensation for their expropriation. Yukos oil s leadership gift will help realize goals i have pursued while serving as librarian of congress, said dr. Yukos was formerly the largest oil company in russia. It is headquartered in moscow and its oil reserves 14. Jason corcoran, bne intellinews an authoritative history of russias oil industry in the first two decades of the postsoviet era. 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 yukos cases and the provisional application of the. Yukos investors settle with rosneft, russias state oil. 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. Menatep, which owns 60pc of yukos shares, has threatened to sue anyone who buys yugansk. Funds were disbursed through philanthropic programmes and competitive grant programmes in a wide variety of educational, cultural, and social spheres. Welcome to the yukos claims administration website. Yet one event in russia during the early 2000s fell into this category.
It isnt always a flattering portrait, writes derek. Yukos expected to name american as companys chief the. And in 2001, khodorkovsky and yukos shareholders also created the yukos funded open russia foundation, with a view towards sustainably building and strengthening civil society in russia. 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. The company had become the secondlargest taxpayer in russia after the state gas monolith gazprom, contributing 4. A book considered by some as the bible on the history of russian oil. A history of battles for the black gold institute of modern russia.
In april 2003, khodorkovsky announced that yukos would merge with sibneft, creating an oil company with reserves equal to those of western petroleum multinationals. The net proceeds of the liquidation, less any reserves for expenses, will be deposited into the distribution fund. The arrest of mikhail khodorkovsky, the head of the yukos oil company, in october 2003, was a key turning point in modern russian history. Yukos takes russia to human rights court in strasbourg. Ed crooks, financial times a thorough historyof the symbiosis of oil and politics since the unraveling of the soviet union. With holdings in numerous sectors of the oil industry, the company accounts for 15 percent of oil produced and 15 percent of.
Mikhail khodorkovsky, the head of the yukos oil company, was. 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. The yukos affair and the struggle for russia by martin. Oao nk yukos is the second largest of russia s integrated oil companies, with an estimated 11. A new hope for the yukos shareholders pca awards revived. Billington, who is a prominent scholar of russian history and culture. What a shame the man responsible for its success was forced out and put sent to prison for what others. 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. 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. In this book, richard sakwa examines the rise and fall of yukos, and the development of the russian oil industry more generally.
Yukos claims asylum in texas the journal newcastle. Yukos and sibneft sign agreement to merge production operations into single. A new book tells the story of the oil industrys boombust cycle through the personalities of its main protagonists. Its assets were acquired in controversial circumstances from the russian government during the privatization process of the early 1990s. 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. Yuko yukos between february, 2003 and october 25, 2003 inclusive, the class period. Whats really happening with the yukos case foreign policy. Overall this book gives a description of the yukos affair that is different from the mainstream western view that khodorkovsky was arrested for championing democracy or the russian and unconventional western view that khodorkovsky was a brutal thief who simply got his come uppance. 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. Early years mikhail khodorkovsky was born on june 26, 1963, the only child of marina and boris khodorkovsky, who worked as chemical engineers at an industrial tool plant.
Kukes, a russianborn american executive well known in the russian oil industry. Oxford university and coeditor of a book on russias postcommunist economy, pointed. Published in october 20 in the book, mikhail khodorkovsky draws. The book highlights how and why this process differs between companies within the same industry, explores the complexity of the change process and discusses the importance of the top management team. 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. Khodorkovsky had been reported to be involved in negotiations with exxonmobil and chevrontexaco to sell one or the other of them a large stake in yukos.
Menatep increases control of yukos to more than 90 per cent. In 1995 and 1996 a handful of oligarchs took control of yukos, a vast russian energy company with huge oil and gas reserves. To his credit,the author,in a textbook example of how journalism should be explores both points of view to the story as well as some conspiracy theories. Whats more, yukos has expressed support for additional russian oil exports to the united states, which has long wanted to become less dependent on petroleum from the middle east. The book tells of corruption in russia and how now thats what interests me putins oil.
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