UPDATE: Report: Russian investigators can prove fraud in Yukos privatization

(Adds comments in third, fourth paragraphs)

MOSCOW, Mar 25 (PRIME) -- Russian investigators are about to prove that privatization of now defunct oil company Yukos was unlawful, spokesman for the Investigative Committee Vladimir Markin told radio Vesti FM in an interview broadcast Friday.

“Investigators have worked in this area and are close to proving that indeed this was so. We have certain documentary proof,” Markin said.

He said that privatization of Yukos in 1995 violated the antimonopoly and competition law: “The team of (former key owner) Mikhail Khodorkovsky misrepresented companies Laguna and Reagent, which in fact belonged to Khodorkovsky, as independent legal entities, for participation in an investment competition and a loans-for-shares auction, which was a lie.”

Markin also said that Khodorkovsky promised to invest U.S. $350 million in Yukos during privatization, which he never made. The later formal owners did not invest in the asset either and have no right to claim losses in courts, he said.

The Permanent Court of Arbitration in Hague ruled in July 2014 that Russia must pay $50 billion compensation to former owners of Yukos for the company’s bankruptcy ruling and asset nationalization. Russian authorities refused to fulfill the court order, and the shareholders sent claims to several countries, asking to help the fulfillment.

The shareholders are demanding arrests of Russian property in six countries, while Moscow is trying to contest the legality of the claims, Justice Minister Alexander Konovalov said earlier.

End