President of LLC "YUKOS-Moscow". A shareholder of Group Menatep Limited (3481001 shares or 7%). On October 17, 2003, he was charged with tax evasion under Article 198 of the Criminal Code of the Russian Federation. The Prosecutor General's Office accused Shakhnovsky of non-payment of 29 million rubles in 1999-2000. Another 24 million rubles were accrued to him by the Inspectorate of the Ministry of Internal Affairs in the form of penalties and fines. Without waiting for a court decision, Shakhnovsky transferred 53 million rubles to the budget. On February 5, 2004, Shakhnovsky was sentenced to one year in prison by the Meshchansky court, but was released from punishment "as a person who committed a tax violation for the first time, ...contributed to the disclosure of the crime and fully compensated for the damage caused".