Russian Stock Market Falls on News of VimpelCom Tax Claims
If the headlines read "Russian Stock Market Falls..." — it's only because NYSE, where VimpelCom's traded under the VIP ticker symbol, hasn't awaken yet to hear the bad news. In a couple of hours it will be all over Wall Street. And something tells me this is only the beginning.
Indeed, the fiscal claims, going back to 2001's tax-avoidance schemes, had been served to VimpelCom HQ in Moscow two weeks ago. The ominous letter from the Tax Commission, that sent VIP shares plummeting today, had been delivered on November 26th, but until this very morning, December 8th, the company has kept denying its receipt (last denial, duly signed, came through to our Moscow offices today). Obviously, the VIP and Alpha top brass kept working behind the scenes over the last fortnight, trying to settle somehow, before anyone goes public with this story. But the insiders (I mean - the State, not corporate ones) were pushing too strong, and finally, the letter found its way into Reuters' Moscow bureau. Hence, the press-release.
Now they'll be blaming it all on Leonid Reiman, the influential IT and Communications minister, Putin's long-time ally, who has a long record of feuds with the Alfa-Group, VimpelCom's main shareholder. And right they'll be: it's better to be seen feuding with Reiman (who's after all just one more oligarch, powerful as he is), than paraded in Khodorkovsky's robes.
The big question is: can they help it?
How long can Alfa afford the current talk of "business as usual"?
Sources tell us, that there's a new past tax claim, waiting around the corner.
Let's take a short pause and wait for some smoke to clear.
Indeed, the fiscal claims, going back to 2001's tax-avoidance schemes, had been served to VimpelCom HQ in Moscow two weeks ago. The ominous letter from the Tax Commission, that sent VIP shares plummeting today, had been delivered on November 26th, but until this very morning, December 8th, the company has kept denying its receipt (last denial, duly signed, came through to our Moscow offices today). Obviously, the VIP and Alpha top brass kept working behind the scenes over the last fortnight, trying to settle somehow, before anyone goes public with this story. But the insiders (I mean - the State, not corporate ones) were pushing too strong, and finally, the letter found its way into Reuters' Moscow bureau. Hence, the press-release.
Now they'll be blaming it all on Leonid Reiman, the influential IT and Communications minister, Putin's long-time ally, who has a long record of feuds with the Alfa-Group, VimpelCom's main shareholder. And right they'll be: it's better to be seen feuding with Reiman (who's after all just one more oligarch, powerful as he is), than paraded in Khodorkovsky's robes.
The big question is: can they help it?
How long can Alfa afford the current talk of "business as usual"?
Sources tell us, that there's a new past tax claim, waiting around the corner.
Let's take a short pause and wait for some smoke to clear.
posted by dolboeb at 5:08 PM
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