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.’