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Yukos caught up in Spain money-laundering case
ft.com ^ | March 14 2005 02:00 | Mark Mulligan

Posted on 03/14/2005 6:52:55 AM PST by Destro

Yukos caught up in Spain money-laundering case

By Mark Mulligan in Madrid

Published: March 14 2005 02:00 | Last updated: March 14 2005 02:00

Yukos, the Russian oil company, has been caught up in what Spanish authorities call Europe's largest money-laundering case, uncovered in weekend raids on the country's Costa del Sol.

Spain's interior ministry yesterday alleged that funds illegally siphoned from Yukos, which has been hit by a $28bn (£15bn, €21bn) claim for back taxes by the Russian authorities, had been discovered on the Mediterranean coast as part of a broader money-laundering investigation. It said political and judicial authorities in Moscow were working with their Spanish counterparts on the case.

However, Yukos at the weekend ridiculed suggestions that it was siphoning revenues out of the country to avoid paying taxes.

Reuters quoted a Spanish police source as saying: "These are individuals who from inside the Russian company appear to have diverted sums of money. . . which then left the country without the knowledge of the company nor the tax authorities."

The ministry's official comments came as police detained more than 40 people in connection with an alleged network through which at least €250m ($335m, £480m) in black market funds have been invested in property, luxury cars, jewellery and aircraft in Spain.

The weekend raids follow an 18-month investigation stemming from a routine inquiry from French police about a company linked to drug trafficking.

The investigation, which involved Europol and Interpol, led to an unnamed Marbella-based law firm. The firm, in turn, was linked to a complex web of shell companies, many registered in the British colony of Gibraltar. Dutch police have also raided offices in The Hague and Harlem, according to Spanish authorities.

Seven lawyers and three notaries were among those detained. Some have been released on bail, although the magistrate assigned to the case was late yesterday still taking declarations.

Spanish newspapers yesterday reported that police would need another year to follow the money trail back to companies and individuals across Europe, the US and Canada. Among those detained since last Thursday are Finnish, Russian, Ukrainian, Moroccan and French nationals.

Juan Carlos López, special state prosecutor for organised crime, said of the case: "The worst is yet to come." Police have already frozen €30m in bank accounts and seized 250 properties in and around Marbella. They have also impounded 42 top-of-the-range sports and luxury cars, two light aircraft and yachts.

The Spanish subsidiary of a Dutch company was, according to the interior ministry, being used to invest funds siphoned from Yukos.

Alexander Shadrin, Yukos spokesman, told Russian radio the claims were "nonsense". "The only place left to look is Mars - did we launder something there?" he said.

Police hailed the raids as an important strike against organised crime. Spanish authorities for decades have been trying to clean up the image of the country's Mediterranean coast, a haven for British criminals during the 1960s and 1970s.

In 2003, police broke up dozens of criminal gangs, many with links to Russia and eastern Europe, involved in money-laundering and drugs and arms trafficking.

Property speculation on the coast has provided criminals with an ideal outlet for black market money.

José Antonio Alonso, Spanish interior minister, said: "The fight against money-laundering is one of the great pillars on which we base our strategy against organised crime networks."


TOPICS: Business/Economy; Foreign Affairs; News/Current Events; Russia
KEYWORDS: spain; yukos
So Putin was right all along?
1 posted on 03/14/2005 6:52:56 AM PST by Destro
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To: Destro

I knew that Yoko Ono was involved in some criminal activity, after she broke up the Beatles.


2 posted on 03/14/2005 6:56:30 AM PST by BCrago66
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To: jb6

bump


3 posted on 03/14/2005 9:05:48 AM PST by Destro (Know your enemy! Help fight Islamic terrorism by visiting johnathangaltfilms.com and jihadwatch.org)
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