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Russian Prosecutor Warns More Tax And Fraud Probes Likely

by Tatiana Smolenskaya, for LawAndTax-News.com, Moscow

08 June 2005

Speaking recently on Russian television, Russia's deputy prosecutor general, Valadimir Kolesnikov warned that other oligarchs may face tax and fraud investigations similar to that undergone by oil magnate Mikhail Khodorkovsky.

The former head of the Yukos oil company was finally sentenced last week after 12 days of verdict-reading in the Moscow court hearing his case.

The billionaire, whose supporters believe that he has been targeted by the Kremlin as a result of his support for opposition political parties, was found guilty of six of the seven fraud, tax evasion and embezzlement charges levelled against him, and was sentenced to nine years in jail, minus time already served.

Telling NTV that the Khodorkovsky case "will not be the last", Mr Kolesnikov hinted that other tycoons had not been arrested already because they had fled the country.

"Unfortunately someone ran away. We were too human that time and they managed to hide," he explained, without naming names. However, he reportedly suggested that some other former Yukos executives had "blood" on their hands.

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