#13
The Times (UK)
June 23, 2002
Happy 39th for Russia’s $7bn man
By Alice Lagnado
THE softly spoken Mikhail Khodorkovsky will have a lot to celebrate when he turns 39 this Wednesday.
He has gone from being a shadowy figure associated with the alleged plunder of Russia to the country’s richest and most famous business leader.
The former Young Communist leader heads the Yukos oil company, which admirers say has the potential to become the first Russian venture to stand shoulder to shoulder with the best international companies.
He revealed last week that he is the beneficial owner of a 36.3% stake in Yukos, worth about $7 billion, a shareholding previously hidden through a Gibraltar-registered company.
Khodorkovsky’s decision to come clean has nothing to do with sentiment. Yukos, whose market value stands at about $20 billion, is pushing for a New York Stock Exchange listing this year, for which it must meet American disclosure requirements. Its boss simply wants to make as much money as possible.
Until now Russian businessmen have kept who owns what a secret to avoid taxes, attacks by business foes or even murder. Khodorkovsky’s unusual disclosure, planned well in advance, could set a trend that would make Russia far more attractive to investors.
Khodorkovsky’s story is one that could have happened only in the new Russia after 70 years of communism. How did a young socialist become a ruthless capitalist — and so fast? In Brezhnev’s Russia, he was deputy head of the Komsomol, the communist youth league, in a Moscow district, a training ground for Soviet leaders. It was there he started making money by exploiting loopholes in the law and went on to employ 5,000 people. He formed Menatep, a financial group and bought up Yukos for about $1.1 billion, a fraction of its real worth.
Back to the Top
Next Article
June 23, 2002:
#6321
- Back to the Top -