Dresdner called in over Yukos crisis

Anxiety over the future of Russian oil group Yukos eased slightly yesterday as the government appointed German banking group Dresdner Kleinwort Wasserstein to value its crucial oil production unit.

The moved helped to address concern among Yukos shareholders that the Yuganskneftegaz production operation would be sold off cheaply to help pay a $3.4bn (£1.84bn) tax bill.

Although Yukos is continuing to pump oil, concern about its ability to keep operating in the face of a continued onslaught by the Russian authorities has caused oil price shocks. Its own share price has been turbulent and yesterday its shares were suspended after they rose more than 10% on relief about the appointment of DKW.

As Mikhail Khodorkovsky, Yukos's main shareholder, returned to court for his trial on tax evasion charges, the extent of international concern about the future of the company began to emerge. Reuters reported that Condoleezza Rice, the US national security adviser, called the Kremlin at the weekend to express concern about the company, which is Russia's largest oil exporter, pumping 1m barrels a day.

Yukos has attracted worldwide interest ever since Mr Khodorkovsky was arrested in October.

DKW's appointment was re garded as a sign that Russia wanted to depoliticise the sale of Yuganskneftegaz, which Yukos has valued at more than £20bn.

It would not be expected to achieve such a price if it were sold in a competitive tender because of the continued uncertainty about the attitude of the Russian authorities towards the company. Yukos' assets are frozen and it was reported yesterday that a Moscow court had refused a fresh application to release them.

HERE