PwC wins Yukos appeal

PricewaterhouseCoopers have won a key battle in the Russian courts relating to claims the firm had been an active participant in tax evasion at Yukos, the collapsed oil giant.

PwC Russia said: 'The Moscow Region Federal Arbitrazh Court has today fully overturned the rulings of the First Instance and Appellation Courts in the case relating to the audit of Yukos by PricewaterhouseCoopers. The case has now been terminated by the court.'

At the start of 2008, Yukos was billed for tens of billions of dollars in back-tax claims and auditor PwC also faced severe back-tax penalties. The firm opted to withdraw its opinions, which had previously endorsed the company's tax strategies as a result.

But the courts pursued the tax evasion issue, creating further legal wrangles for the firm which also saw its licence to continue as an audit firm come under threat.

'We are very pleased with the court's decision, said PwC Russia in a statement. 'The court has made the correct ruling in this case, particularly given that one of the defendants, Yukos, no longer exists.

'This is good news for PwC, as well as for the Russian and international business communities. As always we continue to focus our energy on growing and developing our business in Russia.'