18 June 2004 00:00
Putin `does not want bankruptcy` OIL:
ByLine: By ANDREW JACK and ARKADY OSTROVSKY
Vladimir Putin, the Russian president, yesterday offered assurances that he
did not want to see the bankruptcy of Yukos, fuelling speculation that the
crisis surrounding the embattled oil group could soon be resolved.
In a rare comment on the criminal and commercial feuds coming to a head
around the group, Mr Putin told journalists: "The Russian authorities,
the government and economic officials are not interested in the bankruptcy of
such a company as Yukos. The government will do its best to prevent the
company's collapse."
His remarks, which pushed up Yukos's shares by 34 per cent, raised the
stakes in a dispute which has been widely seen as a politically motivated
attack on Mikhail Khodorkovsky, Yukos's former chief executive and
largest shareholder, and has become a litmus test for investment in the
Russian market. They came ahead of a court hearing in Moscow today on a
Dollars 3.4bn additional tax bill for 2000, which Yukos executives have
warned could push it into bankruptcy.
A letter sent by Yukos on June 9 to Mikhail Fradkov, prime minister, and seen
by the Financial Times, proposed a settlement to prevent insolvency, but also
highlighted divisions within and around the company, which could trigger a
deeper crisis.
It suggests paying off tax debts by buying back shares held by Menatep,
through which Mr Khodorkovsky and his partners hold a controlling stake, and
giving them to "interested investors approved by the government".
The correspondence, written by Yuri Beilin, deputy chairman of the management
board, also offers to sell some of the company's assets to state-owned
fuel and energy companies.
However, Yukos said it had received no response from the Russian authorities
to its offer, which may be seen as an attempt to open negotiations in the
process and undermine Mr Putin's claim that the courts alone should
resolve the dispute.
The letter risks alienating Menatep and opening up the company to further
attacks from the tax authorities by conceding that it considerably underpaid
taxes in the years 2000-2003.
Tim Osborne, a director of Menatep, yesterday expressed hope that "the
Russian government would behave honourably" and not bankrupt Yukos, but
warned of international legal action for expropriation if it did.
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