30 May 2004 18:58
RUSSIA: YUKOS SENDS SHARES TUMBLING BY WARNING OF IMPENDING BANKRUPTCY...
Shares in oil giant Yukos fell by 11.6 percent on 28 May following a 27 May statement by the company that it could be
bankrupt by the end of this year, Russian and international media reported. The company's statement came in the
wake of a 26 May Moscow Arbitration Court ruling that the company must pay $3.3 billion in back taxes, fines, and
penalties. Yukos has announced that it will appeal that ruling. Shares in the company reached their lowest level since
December 2002, and the company has fallen from Russia's second-largest firm in terms of capitalization to the
fourth largest, Prime-TASS reported. The Yukos statement noted that there is in place a ban on the company selling any
assets, including share packages, in order to raise liquid funds. It added that the Tax Ministry is investigating the
company's taxes for 2001 and might file an additional case based on that probe. The Moscow Municipal Court on 27
May upheld a Basmannyi Raion Court ruling from March that froze the Swiss bank accounts of 20 Yukos managers and several
Yukos-affiliated entities. "Vedomosti" reported on 28 May, citing unnamed company sources, that Yukos's
major shareholders intend to ask for the resignation of company CEO Semen Kukes before the end of June. RC Copyright (c)
2004. RFE/RL, Inc. Reprinted with the permission of Radio Free Europe/Radio Liberty
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