Menatep acts to block Yukos sale

Yukos' main shareholder has filed a legal complaint to prevent the Russian government selling off the oil giant's main production unit, reports say.

Group Menatep, which owns 60% of Yukos' shares, used the Energy Charter treaty to bring the proceedings, Russia's Interfax news agency said.

Moscow wants to auction Yukos' seized unit, Yuganskneftegaz, to recover the firm's huge tax bills on 19 December.

Group Menatep's managing director said the move would amount to expropriation.

"We are talking about the expropriation of our property, and we intend to protect it through all possible legal means," the managing director, Tim Osborne, told Interfax.

The former boss of Yukos had earlier spoken out against government plans to sell the key unit.

Mikhail Khodorkovsky, who is currently in jail, said the move would be the "worst solution" to the problems facing Yukos.

Russian President Vladimir Putin is widely believed to have targeted Mr Khodorkovsky, Yukos' founder and former chief executive, after he used his fortune to fund opposition groups.

Some investors have expressed fears that Yukos assets will be sold cheaply to a buyer friendly to the Kremlin.

International litigation

A 76.7% stake in Yuganskneftegaz is to be sold for a minimum of 246.8bn roubles ($8.65bn), well below the $20bn which Yukos says the unit is worth.

The move is aimed to help settle Yukos' total tax debt of $24bn.

Group Menatep has in the past threatened to initiate international litigation over the proposed sale.

The Energy Charter is an international treaty that establishes a legal framework to protect investments in the energy sector in the countries of the former communist bloc.

Under the terms of the treaty, shareholders may initiate international arbitration to reclaim damages if an amicable agreement is not reached within three months.

HERE