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Russneft boss faces tax charges



By Upstream staff 

Russian prosecutors have charged Mikhail Gutseriyev, the co-owner and company president of oil player Russneft, with illegal activities and tax evasion, according to reports.

Moscow-based financial newspapers Kommersant and Vedomosti quoted unnamed sources as saying Gutseriyev was charged with large-scale tax evasion and illegal activity on 4 May, following an investigation opened into the privately-held company in January.

Russneft declined to comment until any charges are officially announced, but Gutseriyev has repeatedly denied any wrongdoing.

Spokeswomen for Russian police and prosecutors said they could not confirm that Gutseriyev had been charged.

If found guilty, he could face fines and imprisonment of up to six years under one statute and up to five years under another. Vedomosti said three other managers were also charged.

After prosecutors opened the case in January, analysts told Reuters it may reflect pressure from a state-controlled energy company - either Rosneft or Gazprom - interested in buying some or all of Russneft's assets.

The two state-backed energy giants have spearheaded a massive increase in state control over the energy sector in the last three years, principally marked by the demise of one-time market leader Yukos.

Russneft tried to buy Yukos' 49% interest in Slovak pipeline operator Transpetrol, which was also coveted by Gazprom. Neither could clinch the sale before Yukos sank under the weight of $33 billion in back tax claims.

In 2005, Russneft bought Yukos' 50% stake in Zapadno-Malobalyk, a Siberian joint venture with Hungarian producer MOL.

The 300,000-barrel-per-day Russneft was created from scratch in 2003 by Gutseriyev with the help of Swiss-based oil trader Glencore. The company has been actively buying oil-producing and refining assets ever since.

Russneft's spectacular growth prompted some analysts to speculate that it enjoyed the support of Kremlin officials keen to keep the strategic energy sector under their control.

But the company grew at a more modest pace last year, when it also pulled out of a few tender races. Russneft's recoverable reserves are currently estimated at 4.6 billion barrels.

Gutseriyev was the head of state-owned player Slavneft before it was bought by TNK-BP at a 2002 privatisation auction.

He was fired just before the auction and quickly set up Russneft, which expanded from virtually zero to current production levels by consolidating small Russian oil companies.


Tuesday, 15 May, 2007, 04:40 GMT  | last updated: Tuesday, 15 May, 2007, 07:53 GMT

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