#8 - JRL 7251
Yukos CEO: Action Spells Capital Flight From Russia-Report
DOW JONES NEWSWIRES
July 16, 2003
MOSCOW -- Legal actions against Russia's largest oil company OAO Yukos (R.YUK) will result in more capital flight from the country, CEO Mikhail Khodorkovsky said Wednesday, local media reported.
Khodorkovsky, who returned from the U.S. at 0900 GMT, added that many decisions to invest in Russia will be delayed until the Yukos situation is clarified.
"By the end of the year we'll know to what extent this has harmed Russia ," he said. "While there exists the possibility of reversing this process, we will do everything that we can."
During the past two weeks, the General Prosecutors' Office has opened a series of criminal cases against Yukos and affiliated entities, as well as major shareholders.
Billions of dollars flowed out of Russia in the 1990s and was deposited in offshore accounts. During the past year, that rate has decreased, and in recent months, Russia has seen more capital flowing in, which has been partly responsible for pushing the stock market to record highs.
Company Web site: http://www.yukos.com