Yukos Tax Hearing Is Adjourned for Now

The Moscow Arbitration Court on Monday adjourned a hearing to assess the legality of Russian tax authorities' claim that the oil company Yukos owes some $ $3.4 billion in back taxes, news agencies reported.

The Tax Ministry requested more time to prepare evidence for its case, which will continue on Wednesday. Ministry officials say Yukos exploited onshore tax havens in several Russian regions to minimize its tax liability.


However, Yukos secured on May 19 a ruling that prohibits the ministry from confiscating the money until a court renders a decision on the tax claim's legality.


Yukos officials say the company might have to declare bankruptcy if it's forced to make the payment.


Yukos and its major shareholders are the focus of a multi-pronged legal probe, under which former chief executive Mikhail Khodorkovsky has been jailed since October awaiting trial on charges including tax evasion and fraud. The probe has been widely seen as an effort to stifle Khodorkovsky's political clout.


Since his arrest, Yukos' plans to merge with Russia's Sibneft to form the world's fourth-largest oil-producing company have fallen apart.


On Monday, a Moscow court upheld a ruling nullifying a $9 billion share issue under which Yukos was to acquire Sibneft. The ruling means that formal control of Sibneft reverts to Millhouse Capital, which manages the assets of tycoon Roman Abramovich.



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