Yukos Oil's key unit assets seized again

08/09/04 - newratings.com

LONDON, August 9 (New Ratings) – The Russian Justice Ministry bailiffs renewed their seizure today of the assets of Yuganskneftegaz, Yukos Oil's (YUSA) key production unit. Meanwhile, the company's appeal against the seizure of another unit was rejected by a Russian court.

The Justice Ministry reportedly said today that the assets of Yukos Oil's Yuganskneftegaz subsidiary have been frozen again, since the company does not have cash to pay its tax liabilities. The Moscow Arbitration Court had ruled late last week that the production assets could be seized only if the debtor lacked cash or other assets for the payment of the bills. The beleaguered Russian oil giant, which faces tax bills of $3.4 billions for the year 2000 and is likely to be imposed with additional tax bills for 2001 and 2002, had previously warned that it would have to file for bankruptcy this month, if the government did not allow access to its bank accounts and permit it to sell its key production unit, Yuganskneftegaz. In another development, a Russian arbitration court has rejected Yukos Oil's appeal against the seizure of the assets of another subsidiary, Tomskneft, by the bailiffs.