At the same time, in its statement, YUKOS said its managers were making every effort to find cash and pay the tax claims. Should these measures prove unsuccessful, YUKOS would have to announce the bankruptcy of Russia’s largest oil company, the company said.

YUKOS issued the statement after the Russian Justice Ministry announced the forthcoming evaluation and sale of Yuganskneftegas as a part of its ongoing enforcement proceedings.

YUKOS believes that it has always fully complied with all tax laws and common business practices. At the same time, being a law-abiding company, it will comply with the ruling of the Arbitration Court, which upheld the Tax Ministry's claim of RUR 99.4bn in back taxes for 2000.

With current oil prices, YUKOS’s consolidated revenues total $1.8bn a month on average. The company’s cash disbursements in July are estimated at $1.7bn. The same level of cash receipts and disbursements is expected in August.

About $900m a month are coming to YUKOS’s frozen accounts every month. Most probably, they will be taken by the government as payment for the oil company's tax debt. That means that in July and August YUKOS needs about $1.7bn a month to meet cash disbursements while not having access to about one half of its cash receipts. The Company has been able to cover its cash deficit in July and may not be able to continue this beyond, at the latest, mid-August, YUKOS said in a statement.

Meanwhile, Viktor Gerashchenko, Chairman of the YUKOS Board of Directors, commented on media reports that Yevgeny Shvindler could be invited for the post of YUKOS Chairman, said the company’s leadership was unaware of such talks. At the same time, he did not rule out that the talks could be underway.

For his part, Mr. Theede also said he did not know about talks between YUKOS shareholders and Mr. Shvidler. The businessman joked that he was going to spread a rumor that he was going to become Sibneft President.

Mr. Gerashchenko was elected to the YUKOS Board of Directors at the company’s general meeting on June 24, 2004. In early July, Mikhail Khodorkovsky, a key shareholder in YUKOS and the company’s former CEO who is now facing trial on fraud and tax evasion charges, suggested that Mr. Gerashchenko should leave the post.