Yukos appeal thrown out of court

Under-fire Russian energy giant Yukos has had an appeal over the seizure of its main energy unit thrown out by a Moscow court.

Bailiffs are threatening to sell Yukos' Yuganskneftegaz unit to help pay off huge tax arrears that could bankrupt Russia's biggest oil company.

Yukos failed in the attempt to free up its shares in Yuganskneftegaz, which accounts for 60pc of the firm's 1.7 million barrels-a-day output.


Energy ministry officials will today meet their Chinese counterparts in Beijing to discuss key deliveries of Yukos supplies to oil-hungry northern China.

These talks may touch upon rumoured plans for a bid for Yuganskneftegaz by a Chinese firm.

Beijing has approached Moscow with its concerns over the handling of the Yukos case, which many people see as a Kremlin attack on company founder Mikhail Khodorkovsky, who had used his estimated USD15bn fortune to fund opposition political parties.

President Vladimir Putin, who was strongly criticised by Khodorkovsky before his arrest on charges of fraud and tax evasion, on Monday attempted to ease international fears of a global oil shortage in a telephone conversation with US President Bush.

Oil prices eased away from record highs in recent days on news that Iraqi supply was improving and as Putin made reassurances to Washington.

HERE