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Russia prosecutors open criminal probe into Yukos bankruptcy fraud allegations

[JURIST] The Russian Prosecutor General's Office [official website, in Russian] has begun a criminal investigation into possible fraud stemming from bankruptcy proceedings for Russian oil giant Yukos [corporate website; JURIST news archive], according to Tuesday reports from the Itar-Tass news agency. The investigation centers on allegations that former Yukos officials embezzled money by securing a $4.5 billion loan from Yukos Capital SARL, a Luxemburg-based subsidiary and major creditor for Yukos, and masterminded a plan to sell crude oil through subsidiaries under their control.

Last week, a Russian arbitration court declared Yukos bankrupt [JURIST report], and said the company could be liquidated to pay creditors. MosNews has more. RIA Novosti has additional coverage.

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