Ministry Threatens to Recall Production License from Yukos Subsidiary

Russia’s Natural Resources Ministry may recall all production licenses from Yuganskneftegaz, Yukos’ main production asset, a source close to the Ministry told Interfax on Friday, September 10. According to the source, the move may be in response to a letter the Ministry received from Russia’s Tax Service.

The Tax Ministry reported that Yuganskneftegaz owes more than 3.5 billion rubles ($119 million) in taxes, and in particular in extraction taxes. After the preliminary analysis of licensing agreements the Natural Resources Ministry’s experts came to the conclusion that failure to pay taxes by a fixed date may be “sufficient grounds for the recall of licenses, since this condition was written in the licensing agreement”. The situation will be considered within the next two weeks, said the source, adding that “the Natural Resources Ministry doesn’t exclude the possibility of suspending, and later recalling the licenses”.

Yuganskneftegaz is the main production asset of Yukos Oil Company, responsible for 62 percent of the oil major’s total output. Earlier this month Yuganskneftegaz’ executive manager Sergei Kudryashov said that currently the company owes 4 billion rubles ($137 million) in taxes. Every month Yugansk pays 7 billion rubles ($234 million) in taxes, but no payments have been made since the end of August, because the company’s accounts were arrested.

HERE