Putin offers Yukos olive branch

Russian President Vladimir Putin has said the authorities do not wish to see embattled oil giant Yukos go bankrupt.
"The government will do its best to prevent the collapse of the company," Mr Putin said.

"Russian authorities, the government and economic authorities, are not interested in the bankruptcy of such a company as Yukos."

Yukos' future has been in doubt since the Kremlin presented it with a $3.4bn (£1.8bn) tax demand earlier this year.

Tax burden

The company, whose former chief executive Mikhail Khodorkovsky is in jail on fraud and tax evasion charges, is disputing the demand.

It has claimed it would face financial collapse if forced to pay the entire sum at once.

A Moscow court is to rule on Friday on whether or not the bill must be paid immediately.

Mr Putin stressed that the decision was a matter for the court.

But his comments helped dispel fears that the government's crackdown on Yukos is a thinly-disguised attempt to bring it under state control.

There has been widespread speculation that the Kremlin is keen to reclaim lucrative oil businesses that were transferred to private ownership during murky privatisation deals in the early 1990s.

Shares jump

Yukos shares, which have fallen steeply since the firm's legal troubles began, jumped more than 25% as investors digested the news.

The shares were later suspended after they rose by more than their daily limit.

Mr Khodorkovsky's trial on fraud, embezzlement and tax evasion charges was adjourned indefinitely on Wednesday.

His supporters claim that he was arrested for breaking a tacit agreement to stay out of politics in return for avoiding investigation of his financial affairs.

The former Yukos chief, a member of Russia's super-rich elite, had funded liberal opposition groups.

The Russian government has denied that his arrest was politically-motivated.

Mr Khodorkovsky, who has been imprisoned since his arrest last October, faces up to 10 years in jail if convicted.

HERE