Russian Justice Refreezes Yukos Shares

The Russian Justice Ministry refroze on Monday shares in the key subsidiary of the embattled oil giant Yukos after a court ruled on Friday the seizure was illegal.

The ministry said in a statement that the actions to refreeze the shares in the Yuganskneftgaz, Yukos's largest oil production unit which accounts for around 60 percent of the oil produced by Yukos, were carried out by bailiffs because of "the lack of sufficient funds" on the accounts of Yukos.

Earlier on Monday, the Moscow Arbitration Court rejected an appeal from Yukos to free shares in another key subsidiary, Tomskneft.

Court To Hear Yukos Appeal

The court also decided on Monday to hear Yukos's appeal to free the shares in Samaraneftgaz on September 2.
Shares in Yukos' three main subsidiaries, Yuganskneftgaz, Tomskneft and Samaraneftgaz, were frozen by last month.

Yukos, Russia's largest oil producer, is fighting a legal battle with the Russian Tax Ministry over a back taxes bill of US$3.4 billion.

Yukos Driven to Bankruptcy?

It has warned that the bill would drive it into bankruptcy as it does not have enough cash to pay the debt because of an earlier court order freezing its assets.
Critics see the year-long legal investigation into Yukos as a Kremlin-initiated onslaught against the company's former chief executive Mikhail Khodorkovsky who reportedly sponsored opponents against President Vladimir Putin.



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