Case | HBS Case Collection | October 2001 (Revised January 2002)

OAO YUKOS Oil Company

by Malcolm S. Salter and Joshua N. Rosenbaum


This case presents the history and current position of Russia's second-largest oil company, YUKOS, as it seeks listing on the NYSE as an ADR and attempts to rid itself from a punishing "governance discount" by the capital markets. This is a company with a history of significant corporate governance abuses that is, more recently, attempting to reform its ways. Although the market value of the company has risen dramatically over the past year (2000), it is still selling at a whopping discount from the imputed market value of its gigantic oil and gas reserves. What more should YUKOS be doing to eliminate its governance discount? How can any program be implemented successfully given the current ownership structure of the company?

Keywords: Stocks; Capital Markets; Corporate Governance; Developing Countries and Economies; Energy Sources; Energy Industry; Russia;


Salter, Malcolm S., and Joshua N. Rosenbaum. "OAO YUKOS Oil Company." Harvard Business School Case 902-021, October 2001. (Revised January 2002.)