Russian authorities move closer to sale of key Yukos assets

Moscow (Platts)--12Oct2004

Russia's justice ministry is moving in on the assets of troubled Russian oil
major Yukos, ministry officials said Tuesday, following the completion of a
valuation of the company's main Yuganskneftegaz production unit. The 1-mil b/d
production firm was valued by investment bank Dresdner Kleinwort Wasserstein
at $10.4-bil, senior official Alexander Buksman told Itar-Tass, Prime-Tass
reported. That figure is well below earlier reports of a $15- to $17-bil price
tag, which analysts saw as roughly fair value. Buksman said the ministry had
taken the decision to sell Yuganskneftegaz assets after Yukos' efforts to pay
off its spiraling back tax bills failed to satisfy either the ministry or the
tax authorities. "In particular, since the middle of September only $10-mil
has been paid," Buksman said. As a result, according to a ministry statement,
"the debt repayment period has been unjustifiably lengthened, and the justice
ministry has taken the decision, on the basis of the law, to sell part of the
debtor's property through the Russian property fund."

Copyright © 2004 - Platts

Please visit:  www.platts.com

Their coverage of energy matters is extensive!!.