Russian tax ministry begins Yukos audit for 2002

The Russian tax ministry has begun an audit of oil giant Yukos' books for 2002, following demands for seven billion dollars (5.8 billion euros) in arrears from 2000 and 2001, a ministry spokesman was quoted as saying by the Interfax news agency.

In all, analysts say Russia's biggest exporter of crude oil could face arrears of up to 10 billion dollars.

So far, Yukos has paid 700 million dollars of its 3.4 billion dollar tax bill for the year 2000, and its executives have vowed to try their best to pay off the remainder within weeks.

But the bill could leap to 10 billion dollars if the government pushes through with 2001-2003 tax claims -- a figure which at current stock prices equals the company's market capitalization.

Yukos, considered one of Russia's most transparent companies, but also one that gained too much influence and political weight for the Kremlin's liking, is approaching a moment of truth.

Its oil rail shipments abroad -- which account for one quarter of all the crude it exports -- could be shut down at the end of the week because the group is unable to make tariff payments.

It has warned that it might have to declare bankruptcy by mid August if Russian legal officials do not unfreeze bank accounts.

Meanwhile, the justice ministry has said it is planning to sell the Yukos' main production subsidiary, Yuganskneftegas.

A bit of good news has come however in a report that former Canadian prime minister Jean Chretien was involved in negotiating a deal between the Russian government and the beleaguered oil giant.

Menatep, the holding group which controls Yukos, said in a statement published Friday and made available to AFP Monday that it welcomes Chretien's involvement in the negotiations.

The statement said Chretien was resolving "tax and other judicial issues that Yukos has come across, and also (the subject) of Mikhail Khodorkovsky," the company's founder currently in custody facing up to nine more years in prison if found guilty of fraud and embezzlement charges.



HERE