Yukos bosses to clarify plans

Troubled Russian oil giant Yukos has called a press briefing by its top bosses for Thursday, amid rumours that it may declare itself bankrupt.

Shares in Yukos lost a fifth of their value during Tuesday and Wednesday after bailiffs put the firm's main oil-producing unit up for sale.

The forced assets sale is to cover a back tax bill of almost $7bn.

Chief executive Steven Theede and chief financial officer Bruce Misamore are due to speak at Thursday's briefing.

Yukos has previously said it sees bankruptcy as a possible way to protect itself from creditor demands, but as its assets have been frozen by the court the impact of a bankruptcy remains unclear.

"The speculation is that Yukos will declare bankruptcy in order to get better control over the asset liquidation process and prevent its key assets being sold for cents on the dollar through direct sales by the bailiff service," said the Moscow-based Aton brokerage.

Sell-off

The move is the latest twist in a long-running feud between the Kremlin and a company, whose ex-CEO Mikhail Khodorkovsky is on trial for fraud and tax evasion.

Yukos has been ordered to pay back-taxes of $3.4bn immediately after losing a separate court case for tax evasion, and proceeding have begun on a second demand for a similar amount.

Yukos' shares had rallied in recent weeks amid optimism that an agreement could be reached between the authorities and the company that accounts for a fifth of Russia's oil output.

But the government's decision on Monday to sell off the firm's main production unit, Yuganskneftegaz, has dashed hopes of a settlement.


Yukos claims to have information that the price for Yugansk would be far below market value at just $1.75bn, despite the division having reserves valued at $30.4bn.

The unit generates 60% of Yukos' total oil output and its true market value would be far in excess of the $3.4bn in taxes dating from 2000 the court has ordered the company to pay.

"It's not going to be an auction - simple, legal or transparent," said Steven Dashevsky at Aton brokerage in Moscow.

Analysts said they were concerned the sale would amount to a giveaway to a company close to the Kremlin.

Leading the pack, many believe, is Surgutneftegaz, with other candidates such as gas giant Gazprom and state-owned Rosneft saying they were not interested.

Trouble in store

Also on Monday, the firm lost a court bid to stay the bailiffs' demand for a second tranche of tax for 2001. A court said it could appeal - but only on 6 September. Until then, it must pay up.

Former chief executive Mikhail Khodorkovsky, meanwhile, was in court on Wednesday to hear some of the tax and fraud-related charges he faces read out by prosecutors.

Last week, he described the accusations against him as "shameful".



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