Yukos, the Russian oil company (still #1) was already facing crushing $27 billion in tax bills levied by the Russian government.

Already their chief executive, Mikhail Khodorkovsky is behind bars awaiting prosecution and possibly life in prison on fraud charges.

Other company's executive are also under fire for any number of illegal transactions.

The firm has also been implicated in a recently foiled Spanish money laundering ring, although representatives insist that Yukos was only "marginally implicated".

And then there's that murder conspiracy plot in which a former Yukos exec has been convicted.

All in all, Yukos it makes Enron, Ebbers and Ms. Stewart seem quite tame by comparison.

Meanwhile, in addition to all of its other problems, Yukos is facing a newly announceed suit brought by former subsidiary, Yuganskneftegaz (that's Rosneft to you and me). At issue in the suit is about 2 and a half billion dollars in what Rosneft claims are unfulfilled payments for oil it supplied to Yukos from July to December of 2004.

When it rains it pours and it, according to the Russian government there's more to come.

The Russian investment climate has dropped precipitously since the Yukos situation was first revealed. In an effort to restore investor confidence and economic stability, the Kremlin is promising many more prosecutions along the lines of what we've seen in the Yukos case.

-- MDT

Labels: Enron, money laundering