Russia refreezes key Yukos subsidiary's shares

0 Comments | AFP, August, 2004

MOSCOW (AFP) — The Russian justice ministry said in a statement that its bailiffs had refrozen the shares of Yuganskneftegaz, the largest oil producing subsidiary of energy titan Yukos.

Yuganskneftegaz (Yugansk) accounts for some 60 percent of the oil produced by Yukos and its future is critical for the survival of Russia's largest oil company.

The justice ministry statement faxed to AFP said the decision was reached by a Moscow arbitration court on Friday because Yukos was falling behind on its outstanding tax payments.

Yukos faces a 3.4 billion dollar tax bill for 2000 and the sum can grow to up to 10 billion dollars through 2003.

Yukos's market capitalization is now lower than that sum and the company, seen as one of the best managed and most...