Abstract

The case examines the crisis at Yukos, Russia’s leading oil company, on account of a feud between its former CEO, Mikhail Khodorkovsky (Khodorkovsky), and the Russian government. It gives a brief outline of Russia’s history and the Russian oil industry over the years, and the country’s economic and political scenario during the 1990s. It discusses the emergence of oligarchs and their relations with the government during Yeltsin’s and Putin’s presidential terms. The case then examines the formation of Yukos, its growth under Khodorkovsky’s leadership and the corporate culture and corporate governance restructuring it undertook during the early 21st century. It discusses in detail the events that led to the arrest of Khodorkovsky and many other key executives of Yukos in 2003. Finally, the case examines the future prospects of Yukos in the light of the above crisis. A country report on Russia and an industry note on the Russian oil industry are available to facilitate better understanding of the Yukos story.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Politics and business.

Keywords

Yukos, Russia, oil company, feud, CEO, Mikhail Khodorkovsky, Russian government, history, oil industry, economic, political, scenario, oligarchs, Yeltsin, Putin, presidential terms, Yukos, growth, leadership, corporate culture, corporate governance restructuring, arrest, 2003