Russian oil giant faces €4.2bn tax bill

Russian oil giant Yukos owes the government about €4.2bn in back taxes and penalties, the Interfax news agency said today.

“We estimate the overall tax shortfall, including fines and penalties, to be tentatively 150 billion roubles (€4.2bn),” Interfax said, citing a letter from Deputy Tax Minister Igor Golikov to the General Prosecutor’s Office.

The letter outlines alleged tax violations by Yukos and affiliated companies from 1998 until this year.

Yukos has been the target of a wide-ranging government probe that culminated with the arrest in October of its then chief Mikhail Khodorkovsky on charges of tax evasion and fraud and the subsequent freezing of about 40% of the company’s stakes.

The beleaguered oil company – already Russia’s largest producer of crude – was dealt another blow when its planned merger with a smaller rival was suspended last week.