28 October 2003 01:48
Putin refuses to step in over Yukos crisis
Vladimir Putin, Russian president, yesterday firmly rejected calls from
business to intervene in the growing crisis at Yukos, the country's
biggest oil company, which has knocked Russia's financial markets.
Mr Putin backed the federal prosecutor's decision to launch fraud and
tax evasion charges against Mikhail Khodorkovsky, Yukos chief and biggest
shareholder, despite claims the investigation was politically motivated.
His televised remarks to the Russian cabinet came after shares dropped
sharply in Moscow on the first day of trading after Mr Khodorkovsky's
arrest on Saturday. Yukos shares fell as much as one-fifth before closing
down 15 per cent. The leading RTS index closed 10.1 per cent down. Trading of
Yukos shares on the Micex index was suspended after sharp falls.
Foreign and Russian investors expressed concern about the latest action by
prosecutors. It has cast a shadow over discussions Yukos has had both with
ExxonMobil and Chevron over a possible strategic partnership.
The US State Department said it was "concerned" about the case and
that it "raised questions as to whether the law is being applied
selectively".
Mr Putin told the cabinet there would "be no meetings and no
bargaining" over the activities of the law enforcement agencies as long
as they were acting within the framework of Russian law. But in a move to
reassure investors he added that the authorities would not re-open
investigations into the contentious privatisations of the 1990s.
Yukos moved to calm the markets, naming Steven Theedes, a recently hired US
oil executive, as chief operating officer and first vice-president ahead of
an emergency board meeting today. Yukos investigation, Page 9 Editorial
Comment, Page 22 Lex, Page 24 Moscow market slips, Page 46 www.ft.com/europe
[FTI [The Financial Times]] |
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