The Yukos Case: The New Dimension in Money Laundering Cases

Abstract

PhD - Vol. 1 of 2 only - Vol. 2 contains appendices, tables of cases and legislation, and bibliography.The Yukos case is known for its unprecedented character and complexity as a Russian corporate, tax and money laundering case. It continues to raise political and legal problems, both domestically and internationally, and has already become a symbol of the contemporary Russian political regime. This dissertation analyses in detail the criminal and corporate aspects of the case, and focuses mainly on the reasons for, and the development and implications of the embezzlement and money laundering case, which is known as the backbone of the Yukos Affair. The thesis is primarily based on a comparative analysis of the international academic findings, case law and the Russian data on the case. The dissertation also discusses in detail the political nature of the Yukos Affair, whilst attempting to show the substantive aspects of case. The findings of the dissertation highlight new types of risk that result from the politically motivated application of Russian anti money laundering legislation to the activities of the international corporate groups, which has been enacted on the basis of the internationally recognised principles. The paper also describes the nexus between the corporate tax evasion schemes, which have been widely used in Russia, and money laundering risks for corporations. Such a situation creates potentially unavoidable criminal risks for all corporate groups that have functioned in Russia over the recent decade. The thesis shows that the corporations, which invest directly and indirectly in the Russian economy, must be aware of the politically driven corporate criminal risks, which quite commonly are not reflected in the corporate disclosure data, and remain unnoticed by the investors. The paper is unique as reflects the personal experiences of the author as the longterm leading lawyer to the Yukos group and as the consultant on the Yukos-related cases