The Story
From Private Success to State Expropriation
How a privatised energy company became the Kremlin's target, and why its former shareholders are still fighting for justice.
The Rise
of Yukos
Russia's most successful energy company
Yukos Oil Company was privatised in 1995–96 with a Soviet legacy of chronic underinvestment and crisis. But new management transformed it through radical reform, heavy investment, and Western-standard governance. By 2003, it had become Russia’s largest taxpayer and one of the world’s most shareholder-confident companies.
The strategy to destroy
The harassment was not incidental. It was the instrument of a deliberate strategy to destroy Yukos and transfer its assets to the state.
The auction and asset seizure
In 2006, the state auctioned off Yukos’s core production subsidiary, Yuganskneftegaz — representing the heart of the company’s value — in less than ten minutes. Most Yukos assets were acquired far below market value by Rosneft, the state-owned oil producer, and its affiliates.
The end result
Yukos was forced into bankruptcy in 2006 and struck from the company register entirely in 2007. One of Russia’s greatest private enterprises had been erased.
Political
Targeting
The Kremlin decides to act
As Yukos prospered, CEO Mikhail Khodorkovsky became a prominent democracy advocate. President Putin saw him as a threat. The response was swift and brutal: harassment, fabricated charges, arrest, and a show trial — followed by the targeting of dozens of employees, some tortured in detention.
The strategy to destroy
The harassment was not incidental. It was the instrument of a deliberate strategy to destroy Yukos and transfer its assets to the state.
The auction and asset seizure
In 2006, the state auctioned off Yukos’s core production subsidiary, Yuganskneftegaz — representing the heart of the company’s value — in less than ten minutes. Most Yukos assets were acquired far below market value by Rosneft, the state-owned oil producer, and its affiliates.
The end result
Yukos was forced into bankruptcy in 2006 and struck from the company register entirely in 2007. One of Russia’s greatest private enterprises had been erased.
The Destruction of Yukos
Bankrupted by design
The harassment was deliberate strategy to destroy Yukos and seize its assets. In 2006, the state auctioned off the company’s core production subsidiary in under ten minutes, acquiring assets far below market value through state-owned Rosneft. By 2007, Yukos was bankrupt and erased from the register.
The strategy to destroy
The harassment was not incidental. It was the instrument of a deliberate strategy to destroy Yukos and transfer its assets to the state.
The auction and asset seizure
In 2006, the state auctioned off Yukos’s core production subsidiary, Yuganskneftegaz — representing the heart of the company’s value — in less than ten minutes. Most Yukos assets were acquired far below market value by Rosneft, the state-owned oil producer, and its affiliates.
The end result
Yukos was forced into bankruptcy in 2006 and struck from the company register entirely in 2007. One of Russia’s greatest private enterprises had been erased.