YUKOS Can Keep Pumping Till End September

Russia's YUKOS will be allowed to produce and sell oil until the end of September and is trying to avoid filing for bankruptcy for as long as possible, chairman Viktor Gerashchenko told Reuters on Monday.
Gerashchenko spoke of a political reprieve for the oil major that will keep its oil flowing to world markets while letting Russia reap the full benefits of record high oil prices.
"I don't expect the company to have any problems producing, refining and selling oil until the end of September. What will happen when everyone comes back from holiday, I don't know," Gerashchenko said.
"Our internal sources tell us -- and as you know there have been no state secrets for several years -- there is an order to let YUKOS fulfil all its internal and external contracts in the near term."
YUKOS, Russia's largest oil exporter, is struggling to pay a $3.4 billion back-tax claim as bailiffs skim revenues from its bank accounts, raising fears that it might have to stop pumping oil. That prospect has helped propel oil prices to record highs.
Volgotanker, Europe's largest river carrier of oil, said on Monday it would not ship YUKOS crude on credit in September if the company, which until 2000 owned Volgotanker, did not pay.
RUSSIA REAPS OIL RALLY
YUKOS's first-half results showed the rapid deterioration of what was once one of Russia's most profitable oil companies as it posted a big loss to Russian accounting standards, a guide to the trends expected when it publishes international accounts.
"The company will avoid bankruptcy for as long as possible," Gerashchenko said.
His remarks appeared to contradict a statement by YUKOS's Chief Financial Officer Bruce Misamore, who was quoted in the Financial Times on Monday as saying that the company may file for bankruptcy within days.
A judicial onslaught against YUKOS and its founder Mikhail Khodorkovsky, who fell foul of the Kremlin and is now on trial on charges of tax evasion, has brought the company to its knees.

Gerashchenko, a former central bank governor who now chairs the YUKOS board, said the government was keen to let high oil revenues boost the balance of payments and finance the budget while prices were at record highs.
"It would be silly not to take advantage of them," Gerashchenko said.
He also said YUKOS had domestic supply contracts to fulfil and the government was at pains to ensure stable fuel supplies during the harvest season.
OPTIMISTIC
The fate of YUKOS is still under negotiation, he said, adding: "I think good sense will prevail."
Market speculation has centered on a possible sale or transfer of production assets to a state company such as Rosneft, an oil company, or gas monopoly Gazprom.
Privately held Surgutneftegaz, with its large cash reserve, has also been seen as a contender for YUKOS assets.
"I think they will be smart enough not to do this," Gerashchenko said.
"The optimistic option is to keep the company functioning, probably once it has changed its shareholder structure."
He said the Justice Ministry's decision to appoint Dresdner Kleinwort Wasserstein to appraise YUKOS's main production unit Yuganskneftegaz for possible sale to pay off the tax debt was "a decent sign."
Gerashchenko said YUKOS would try to delay filing for bankruptcy and it could be hazardous to start proceedings.
"This is a fine line and if there is not enough evidence (of bankruptcy), it will be seen as a premeditated falsification."

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