Yukos braces for bailiffs' moves

Russian oil giant Yukos is waiting to learn what steps bailiffs will take to enforce payment of $3.4bn in unpaid tax after it missed Wednesday's deadline.

Yukos, which accounts for 4% of Russia's economy, has repeatedly said paying the taxes ordered by a Moscow court could push it into bankruptcy.

Yukos's jailed ex-boss and principal shareholder has now offered to sell his shares to meet the tax bill.

A Yukos spokesman greeted the offer as a potentially groundbreaking step.

"I think that it radically changes the equation, and we will have to see how the government responds," Hugo Erikssen, Yukos director of international information, told BBC radio on Thursday.

He added that, as yet, bailiffs had not entered Yukos offices despite the passing of the deadline.

Conflicting reports on Wednesday suggested that police and bailiffs had retrieved the group's register of shareholders.

Seeking a deal

Mr Khodorkovsky's offer demonstrated his commitment to save the company even at the expense of his own fortune, the Yukos spokesman said. The oil magnate is Russia's richest man.

His lawyer, Anton Drel, revealed the proposal on Russian televison. Mr Khodorkovsky's investment vehicle, Menatep Group, has a majority stake in Yukos.

Mr Khodorkovsky is in prison awaiting trial on charges of fraud, tax evasion and embezzlement in a case that is due to resume on Monday 12 July.

The televised offer to sell Menatep shares was brushed aside by Russia's deputy finance minister Sergei Shatalov on Thursday, who said he remains "unaware of any requests from Yukos or any options regarding the settlement of the tax debts."

Many Russians believe that the troubles of both Yukos and its ex-boss stem from his role in funding political opposition groups.

Court bailiffs have the power to auction off Yukos assets to meet the tax debts, so their most likely next move is to carry out a valuation and draw up a target list.

Yukos says it has received no response to an earlier offer to sell its 35% stake in rival oil firm Sibneft, thought to be worth nearly $5bn.

The move would go a long way towards meeting two tax bills stacking up to $7bn - one for 2000 which is due immediately, and a second now levied for 2001.

Mr Erikssen said that Yukos would continue pumping oil though with its bank accounts and assets frozen that would become increasingly difficult.

"But we are very interested in finding an amicable solution that will allow us to pay our taxes, although we do dispute the legality of the claim," he said.

Although no talks have been confirmed, some observers believe that tentative negotations are taking place.

Tough words

Meanwhile, the OECD, a Paris-based think tank, has criticised the Russian government for its attacks on Yukos.

"It is clearly a case of highly selective law enforcement," the OECD said in an annual review of Russia's economy. It added that the courts and prosecutors were "highly politicised".

President Vladimir Putin has said he does not want to bankrupt Yukos but many analysts say its taxation woes are part of a politically motivated campaign against the company and Mr Khodorkovsky.


Yukos' $3.4bn bill applies to 2000, when Russian authorities claim it misused tax havens to reduce its tax burden.

The oil giant denies any wrongdoing, claiming instead that the practice was legal at the time. The company has also received a demand for a similar amount for the 2001 tax year.

Yukos could still face additional tax bills for the years 2002 and 2003.

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