Yukos Affair

The Yukos affair is in line with the recent aggressive policy pursued by Russian president Putin against the oligarchs who control important sectors of the Russian economy. But Putin's actions may have been influenced by the duma elections later this year and next March's presidential elections as the oligarchs are also seen to have acquired significant political influence. The Yukos affair promises not only to affect the course of future foreign investment in Russia, it also raises questions as to whether Putin's Russia is backtracking from its declared path of political democracy and market economy.