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Khodorkovsky's arrest is good for Russian economy
Khodorkovsky"s arrest adds more points to Russian economy Russia is currently one of most dynamic emerging markets in the world, a reputable British newspaper Daily Telegraph wrote today pointing to the fact that the Russian economy had been seeing a boom since October 2003. Strange as this may appear, the periodical thinks this has to do with the arrest of former chief executive of the oil giant YUKOS Mikhail Khodorkovsky. On the contrary, his arrest on charges of tax evasion and fraud with the Kremlin’s desire to separate the oligarch from power should have had a negative impact on the capitalization of the Russian economy and its growth trend. However, the economic performance of the country remained "awesome." Moreover, the latest analysis by UBS investment bank praised Russia for its conservative fiscal policy, huge external surpluses and rapidly rising incomes together with higher productivity and profitability of most Russian companies. At the same time, according to the newspaper, there is momentum beyond the traditionally strong raw material sector. Impressive non-oil growth is seen in manufacturing industries and in telecoms as well. Russia's new generation of billionaires such as Khodorkovsky are not national heroes (“heroes of the narod”), the Daily Telegraph wrote. Keeping Khodorkovsky in jail for the presidential campaign will probably help Putin win more votes - and the unedifying truth in a country not famous for stable democracy is that that will probably add a few more points to the stock market. Mr. Khodorkovsky was arrested in Novosibirsk on a petition of the General Prosecutor’s Office on October 25 and transferred to Moscow. He is charged with fraud, violation of a court order, personal and corporate tax evasion, forgery of documents and embezzlement. Additionally, Khodorkovsky is accused of non-payment of individual income tax and compulsory contributions to the Pension Fund totaling $1.7m in 1998 and 1999.
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