Yukos Production Unit to Be Sold

[CHIMO]

Government officials opened the way for a fire sale of Yukos' main production unit Yuganskneftegaz as payment for the oil major's crippling tax debts Tuesday, a move that would effectively mean the end of Yukos as Russia's leading oil producer.

In a statement that shocked a market that had still hoped Yukos would not be broken up, the Justice Ministry said it was earmarking the Siberian production unit, which produces 60 percent of Yukos' total oil output, for sale.

"After valuation, the stake in Yuganskneftegaz will be handed over to a special organization for sale," the ministry said in a statement, as it announced that court marshals have frozen the shares of all Yukos production units -- Yuganskneftegaz, Samaraneftegaz and Tomskneft VNK.

http://www.themoscowtimes.com/stories/2004/07/21/001.html

[hang a left]

1. Interesting.

I am curious to see what happen ultimately with Yukos. The article tends to lead me to believe that there is still a chance with Yukos last offer to the government of 8 billion dollars over the next 2 years for back taxes. I guess we will know in the next couple of weeks.

[CHIMO]

2. Interesting - Yes

Lots and lots of money. Yes.
Being sold off at a fraction of the value. Looks to me like there will be some new rich pretty soon. And Putin won't have to worry about any more resistance. Maybe other industries are next on the list.

[susu369]

3. Huge story - surprised there is apparently little interest

Investors Caught in Yukos Crossfire

By Catherine Belton
Staff Writer Shocked investors continued to pile out of Yukos stock Wednesday, a day after the government raised the stakes in an increasingly vicious battle with the company's owners by saying it was preparing to tear out the oil firm's biggest production unit and sell it off.

Yukos shares plummeted nearly 12 percent to close at $6.00 on the RTS -- a fall of 26 percentage points in just two days. Even normally bullish analysts said minority investors risked being steamrollered in what now seems like an unstoppable fight between the state and Yukos' majority shareholder, Group Menatep.

--snip--

Some market watchers still hoped that the Justice Ministry was bluffing by saying it was preparing to sell off Yukos' 100 percent stake in the Yuganskneftegaz production unit, which produces nearly two-thirds of the oil firm's total output, as payment for a $3.4 billion back tax bill. It could be an attempt, they said, to force Yukos' owners into a deal on the government's terms.

But others said the politically charged standoff, which has led to the arrest of Yukos billionaire owners Mikhail Khodorkovsky and Platon Lebedev on charges of fraud and tax evasion, already looked to be snowballing out of control.

--snip--


Full story:
http://www.themoscowtimes.com/stories/2004/07/22/001-print.html