BILL OF INDICTMENT

Mikhail Khodorkovsky has been charged with violating the following seven articles of the Criminal Code of the Russian Federation.

Article 159, Part 3 – Grand theft property by an organized criminal group

Article 315 – Malicious non-compliance with a court ruling by representatives of a commercial organization

Article 165, Part 3 – Damage to assets caused by fraud committed by an organized criminal group

Article 199, Part 2 – Conspiracy to evade corporate tax obligations by an organized group, multiple counts

Article 198, Part 2 – Evasion of personal tax and social security obligations by an individual

Article 327, Part 2 – Forgery of official documents, multiple counts

Article 160 – Embezzlement of property

The charges against Mikhail Khodorkovsky are based on the following allegations:

1. Chairman of the Board of Directors of Bank MENATEP Mikhail Khodorkovsky, President of Bank MENATEP Platon Lebedev and others managed the acquisition of a 20 percent stake in fertilizer producer Apatit in the summer of 1994. Volna, a subsidiary company of Bank MENATEP, purchased the portion of Apatit that the Russian government decided to privatize. According to government investigators, Mikhail Khodorkovsky and Platon Lebedev misled representatives of the Murmansk Region Property Fund (MRPF), officials from the Administration of the Murmansk Region, and members of Apatit’s senior management in fulfilling the terms of the purchase contract. According to the terms of the contract, Volna was to invest 563.17 billion rubles (or USD 283 million) in developing Apatit and the town of Kirovsk over a period of two years in exchange for the right to purchase a 20 percent ownership stake in Apatit for 415 million non-denominated rubles.

2. The Appellate Court of the Moscow Arbitration Court cancelled the purchase agreement between Bank MENATEP subsidiary Volna and Apatit. As a result of the ruling, Volna was required to return its 20 percent stake in Apatit to the MRPF. However, on November 19, 2002, Mikhail Khodorkovsky and Platon Lebedev concluded the dispute by signing a settlement with the Russian Federal Property Fund (RFPF). According to the terms of the settlement, the sum of 478,914, 197 rubles, or USD 15.13 million, was to be paid to the RFPF on behalf of Volna and its 20 percent share in Apatit was to be returned to the government. The investigation leading to the charges against Mikhail Khodorkovsky and Platon Lebedev concluded, however, that the appraisal issued by VS Estimation, the company responsible for assessing the amount that needed to be paid, was unreliable. The criminal investigation also concluded that Mikhail Khodorkovsky and Platon Lebedev were successful in concluding a settlement with the RFPF and the Moscow Arbitration Court that precluded the court’s decision of November 19, 2002 largely due to their use of the “unreliable” and “misleading” assessment as evidence of the real value of the shares.

3. According to investigation materials, Mikhail Khodorkovsky and Platon Lebedev were the de facto managers of Apatit from 2000-2002. The company sold its products to foreign subsidiaries at reduced prices. The subsidiaries would then sell the products on the world market at prices twice as high as Apatit’s original price. Apatit’s net profits were, thereby, allegedly reduced while its shareholders, including the Russian government, lost proceeds from dividends paid by the company.

4. Mikhail Khodorkovsky is charged with tax evasion for the period 1999-2000 when he and Platon Lebedev allegedly formed an organized criminal group consisting of employees of Bank MENATEP and its subsidiaries. The group registered dummy legal entities in the preferential tax zone Lesnoy for use in selling oil and other petroleum products produced by Yukos. According to the investigation, Mikhail Khodorkovsky also paid taxes with Yukos corporate bonds instead of cash in order to evade the payment of taxes.

5. Mikhail Khodorkovsky is charged with filing for a tax refund for overpayment despite the Russian government’s alleged claim there was no overpayment.

6. The Prosecutor General’s Office charges Mikhail Khodorkovsky with the illegal acquisition of shares in the Samoilov Research Institute for Fertilizers, Insecticides, and Fungicides (NIUIF). According to the investigation, Wallton, a subsidiary company of Bank MENATEP, acquired NIUIF shares at an investment tender. Investigators claim Wallton’s obligation to invest 114 million rubles in NIUIF was not fulfilled subsequently. The case was transferred to NIUIF’s account, then later returned to Wallton’s account.

7. Mikhail Khodorkovsky allegedly took advantage of personal tax breaks by filing his taxes as a sole proprietor, thereby qualifying himself for the use of the simplified tax system. After that, he concluded a consulting advisory agreement with two offshore companies registered on the Isle of Man (Great Britain). The Prosecutor General’s Office alleges that Mikhail Khodorkovsky received payments from those companies, although he provided no services in reality.

8. Mikhail Khodorkovsky is accused of illegally taking 2,649,906,620 rubles from accounts belonging to Yukos and some of its subsidiaries and giving that money to Vladimir Gusinsky.