Two-month period to sell Yukos' Yuganskneftegaz expires Wednesday

Two-month period to sell Yukos' Yuganskneftegaz expires Wednesday

Moscow (Platts)--6Oct2004


The two-month period set by Russian legislature for selling the seized shares
of the Yukos' key oil producer Yuganskneftegaz expired Wednesday, Russia's
justice ministry said. 

Despite the two-month period set by Russian law, the company could be sold at

a future date due to "objective causes", or the need for the completion of a

valuation of the company's assets, the ministry said.

The Russian government seized Yuganskneftegaz shares two months ago in order
to cover the embattled Yukos' $7.5-bil tax arrears for 2000 and 2001. The sale
depended on a completion of the company's valuation. But German investment
bank Dresdner Kleinwort Wasserstein failed to complete the valuation of
Yuganskneftegaz assets by the end of September as required. Russian media had
reported that Dresdner had valued Yuganskneftegaz at $15- to $17-bil, a sum
which met analysts' expectations. Dresdner and the justice ministry denied
this information. "The ministry is yet to receive the report," a ministry
spokeswoman said.

Meanwhile, the government has already collected Rubles 75-bil ($2.57-bil), or
some 75%, from Yukos as the company scrambles to cover its $3.4-bil tax bill
for 2000. "It is a very good result," the spokeswoman said without adding when
the whole sum of the Yukos debt for 2000 would be paid. The tax ministry has
also continued to seek Yukos' back tax for 2002.

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