Jailed Russian tycoon exits money dream

Mark Franchetti, Moscow

AFTER a year in jail on charges of fraud and tax evasion, Mikhail Khodorkovsky, Russia’s richest man, has told his family that he will give up making money if he is released.

The tycoon’s mother, Marina Khodorkovskaya, 73, said he had revealed to her during a recent prison visit that he intends to turn his back on business, dedicating his life to educational programmes aimed at creating a new generation of elite Russians.

“Mikhail used to say he would do business only until he was 45 and then concentrate on other projects,” Khodorkovskaya said. “He is 41 now and, if he were released in the near future, it would simply mean bringing his original plans forward. He wants to concentrate on educating young people. That’s his vision.”

Any such move by Khodorkovsky, who made his fortune with the Yukos oil company, would mark a victory of sorts for the Kremlin. It is widely believed to have ordered his arrest because he harboured political ambitions and was seen as an opponent of President Vladimir Putin.

The change of direction would not be out of character. Ten years ago Khodorkovsky opened Russia’s first boarding school run by a private charity for orphans and children from poor and broken families. Some 160 children now study at the Korallovo institute, which is entirely funded by the embattled entrepreneur.

The pupils are mainly children of army servicemen and border guards who were killed on duty. Others are victims of terrorism. One pupil lost both his parents in the Moscow theatre siege two years ago.

The school also plans to take at least two children from Beslan’s middle school No 1, the scene of Russia’s worst terrorist attack, which claimed the lives of more than 350 hostages in September.

The pupils are taught and housed free of charge for 10 years. Most of those who have left are now at university. Many want to pursue careers in the oil industry.

Khodorkovskaya said her son intended to expand the school after his release and open similar institutes across the country.

Khodorkovsky, who built a personal fortune of £4.3 billion, was dragged off his plane at gunpoint at the time of his arrest. He has since been charged with fraud over the purchase of a fertiliser company in the early 1990s and with £540m in tax evasion.

If convicted, he could face up to 10 years in prison.

Platon Lebedev, his number two, is in jail on similar charges and Alexei Pichugin, former head of security at Yukos, has been accused of murder. The three — all of whom are currently on trial — have denied any wrongdoing.

Shortly before his arrest, Khodorkovsky said that he would never flee Russia and would prefer prison to exile.

In a relentless legal campaign, widely seen as politically motivated, Yukos has been accused of owing more than £8 billion in unpaid taxes. If forced to pay, it would face bankruptcy.

In an attempt to save the oil giant from being taken over by the Kremlin and sold cheaply to the state, Khodorkovsky resigned as its head last year and offered to hand over his shares. He also promised to surrender his passport if released on bail.

Khodorkovsky’s life in one of Russia’s worst remand jails is a far cry from the days when he ran his business empire and met world leaders, including President George W Bush.
His mother said he was sharing a 130 square foot cell with two inmates, in which the lights were kept on around the clock. He is allowed out for one hour a day, when he jogs in a tiny courtyard, and can shower only once a week.

He is allowed to see his family for a maximum of two hours a month. They are separated from him by a glass partition and have to talk on an internal telephone.

Khodorkovskaya said her son spent most of his time studying the case against him, writing a prison diary and reading history books. Twice a week, she and his wife Inna take it in turns to queue up for hours with other inmates’ relatives to deliver his food parcels.

“He is very upset about the way the Kremlin is destroying Yukos,” she said. “But he does not regret his decision to stay and face it all instead of escaping abroad. He loves his country and is a true patriot.”

(From The Sunday Times, 07.11.2004)