Investors right to be nervous about Yukos EUROPEAN COMMENT Brian Groom
ByLine: By BRIAN GROOM
Russia's tax police again raided Yukos's offices yesterday looking
for evidence of tax evasion, as a nervous international investment community
tried to read the government's intentions. James Wolfensohn, World Bank
president, visiting Moscow, believed the oil company's plight was not a
"systemic case" but needed to be dealt with carefully "because
the impact of big losses on Russia's biggest company cannot be
positive."
Yukos shares and the Russian market revived slightly after recent precipitous
falls but will remain volatile until it becomes clear whether authorities
want to bankrupt Yukos or merely force Mikhail Khodorkovsky and leading
shareholders to give up control. The company's appeal against a Dollars
3.4bn tax claim for 2000 looks forlorn, as do Mr Khodorkovsky's chances
in his impending trial. The question is whether a further Dollars 9bn-Dollars
10bn in tax penalties for subsequent years are pressed.
President Vladimir Putin has every right to tackle tax avoidance and claw
back unfair privatisation gains if this is done even-handedly. But if
minority shareholders are abused and justice is arbitrary, Russia will remain
a risky place to invest. european.comment@ft.com www.ft.com/lombard For
previous comments, see www.ft.com/eurocomment
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