Khodorkovsky & Lebedev Communications Center

Testimony Dates:

June 29.

Bio:

From 1998 through 2003 Mr. Alexander Afanasenkov was Vice-President of YUKOS-EP for geological surveying, then Executive Vice-President for geology. He worked at YUKOS from 1995 through 2007.

Testimony Summary:

Mr. Afanasenkov testified about the positive results of the management restructuring implemented at YUKOS. He knew that YUKOS was a vertically integrated oil company and he never questioned the purpose of YUKOS-EP as an executive company for the production segment. Mr. Afanasenkov testified that YUKOS-EP functioned according to strict rules and procedures. Every important decision was made after examination and analysis by an appropriate group of staff members. He explained, in general detail, the crude oil production process and where that crude oil went. Echoing other witnesses, Mr. Afanasenkov testified that it was not possible to sell crude oil at West European prices in production regions. According to Mr. Afanasenkov, there were numerous cost factors. He added that production region prices will always be lower than in Europe, otherwise oil companies will not be profitable and there would be no point in crude production. Mr. Afanasenkov testified that he knew nothing about the alleged theft of the entire crude oil production of YUKOS from 1998 through 2003, and gave an example why such event was impossible. He explained that geological explorations quotas were based on what the oil companies previously produced and shipped. Mr. Afanasenkov testified that he never had to act on any orders he thought were improper or illegal. No one ever exerted any physical or psychological pressure in order to cause him to act a certain way.