I'll defer to you two on what of the following needs to be communicated on to 
others in Houston:

Ilkka - Nigel Sellens (EEL - HR) phoned to confirm Ilkka had been terminated 
this morning.  He faxed the letter given to Ilkka and effectively tied 
termination to "gross mis-conduct".  As expected, Ilkka disputes this.  Nigel 
left resignation on the table with Ilkka as an option which would involve 
tearing up the letter.  I mentioned to Nigel that I don't believe resignation 
should be an option given the circumstances.  I asked Nigel to get back with 
me on this if Ilkka wants to discuss this further.  

Moving Operations to London - This morning I checked with Nigel, Kevin 
Sweeney (Acctg.) and Graham Cane (Logistics) to assure that they are 
preparing for the possibility that all operations are moved to London.  I 
went  ahead and made the calls to assure that all were prepared so that we 
don't lose 2 ~ 3 days if it is agreed later this week that this is the best 
course of action.  As one alternative, Olga K (in CRM) may need to be 
involved with rail movements due to the need to have a Russian speaker for 
communicating with Russian border authorities for rail deliveries if no one 
in Helsinki will move to London for the near term.  You'll note from prior 
e-mails that business is still being conducted from Helsinki so further 
communication on this point is clearly necessary since this is in conflict 
with the wishes of those in last night's conference call.  

Status of Audit - I spoke with Graham Cane (London Logistics) who is in 
Helsinki going over documentation with AA.  He now believes B/L's have been 
"adjusted".  Typically there is one stamped - Original - B/L and numerous 
stamped - Non-Negotiable - copies of the B/L.  It appears that in some 
instances vessel stamps and the master signature have been cut off of 
originals and glued on to altered copies which don't have these stamps.  
Further confirmation comes from the fact that B/L's attached to invoices sent 
back from customers (representing agreed settlement of a delivery) don't 
match the originals. 

Going Forward - I've not seen AA's scope but would expect it is comprehensive 
given the magnitude of the circumstances and history.  I would recommend that 
one of you have input just to assure that it is exhaustive and representative 
of issues of concern to RAC as well.  

I would assume the timeline/action items, if it exists beyond AA's work, 
would look something like the following.  To my knowledge there is not yet an 
aggregated list of action items beyond work by AA.  Thoughts or questions.

Action         Timing
Finalize the review of all Vnesh documents     Complete late this week
Agree no new business (and explicitly define bsns impacted)   Immediate as 
this does not appear to be discussed or agreed [note 1] 
Establish approach to recovery alternatives from Vnesh [note 2]  Starting 
Next week ??
Review other counterparty documentation for contingent liabilities  ??

note 1 - J Nowlan and I agreed back in Nov. that prepays were finished for 
now.  However, no new business at all out of Helsinki was not discussed since 
the issue of altered documentation had not come to light.  

note 2 - Apparently Vnesh delivered and documented product as fixed price 
delivered product at some point on all fixed price contracts (even the two 
they are now disputing as floating).  Therefore, by implication they have 
acknowledged the fixed nature through these deliveries.  This and other 
issues do suggest we may have a case for some measurable recovery once we 
know the severity of the document tampering issue.