It may have destroyed OAO Yukos Oil Company, he wrote, "but has also inflicted ‘senseless' damage on Russia's economy in the process...The question is what lessons the country will take from the Yukos affair, whose finale is the most senseless and destructive event for the economy in all of President Putin's time in power."

Putin's outspoken economic adviser, Andrei Illarionov, described the forced sale of Yukos' main subsidiary, OAO Yuganskneftegaz, as "the swindle of the year...We used to see street hustlers do this kind of thing. Now officials are doing it."

Yukos is sinking under its $27.5 billion (U.S.) in back-tax bills, and has filed for bankruptcy protection in the U.S. as Russia sells off its major assets. The company missed an interest payment on a $1 billion loan Monday, and the Standard & Poor's rating agency has cut Yukos' credit rating to "D" (default).

Deutsche Bank wants a U.S. Bankruptcy Court in Houston to dismiss the filing of Russian oil giant Yukos for lack of jurisdiction, contending the company has no American presence beyond two small bank accounts and the residence of its financial chief.

Deutsche Bank is part of a bank consortium -- including ABN Amro and Dresdner Kleinwort Wasserstein -- that wants to fund a $10-13 billion bid by state-owned natural gas company Gazprom to buy OAO Yuganskneftegaz, which produces 60 percent of Yukos' oil and 11 percent of Russia's oil.

What I found most interesting were the words of self-introspection of Mikhail Khodorkovsky. He said he was happier without the $15 billion fortune that made him Russia's richest person.

"I have realized that wealth on its own, especially vast wealth, in no way makes a person free. ... I had to close my eyes to a lot of things, and make my peace with a lot, for the sake of my wealth, to keep it and grow it. I didn't just run my property; it ran me. I would like to warn the young people of today, those who will soon be in positions of power. Don't be jealous of wealthy people. ... Wealth opens new avenues, but it enslaves your creative faculties and takes over your personality," he said.

"I would, of course, like to help our country to flourish and become free. But I am willing to wait, if the authorities decide to keep me in prison," Khodorkovsky wrote.

He even drew a parallel between himself and the hero of Alexandre Dumas' romantic novel about a man who is wrongly imprisoned by his rivals: "They want to put me away, far away, for five years or more, because they are afraid I will take revenge. These small-minded people think everyone lives by their rules. But don't worry, I'm not planning to become the Count of Monte Cristo."

If and when he is released from prison, Khodorkovsky is expected to challenge the political leadership of Vladimir Putin.

Yukos (RTS: YUKOG) was off another 33.3 percent today, down 9.00 to 18.00. The end is near.

A sad day for Russia's capital market.

BCara@BillCara.com