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Politics started becoming a factor in YUKOS’s growth plans and YUKOS was forced to fight with Russian authorities over the building of a new pipeline. Still a merger between YUKOS and competitor Sibneft gave YUKOS the world’s largest oil reserves. But things changed quickly in 2003 and not only were pipeline plans killed, but the fall of YUKOS was just beginning.
Mikhail Khodorkovsky was arrested on tax fraud charges and was forced to resign. The merger with Sibneft was undone. In 2004, YUKOS itself was charged with tax evasion and the company scrambled to try and file for bankruptcy protection...
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