Speaking at an investor conference in Moscow, he said cooperation on a possible settlement of the claims was underway. «The company offered a plan to restructure obligations that were proved in court,” the Finance Minister added.

According to him, the Tax Ministry carries out its inspections as usual. At the same time, Mr. Kudrin said a court ruling was necessary on some decisions of the Tax Ministry.

Asked about the possibility of an out-of-court settlement, the Minister said it was “the Tax Ministry’s matter”. He said it was up to the Tax Ministry to decide how YUKOS should pay the claims – by a one-time payment or by installments.

Mr. Kudrin said the Russian government was not interested in the bankruptcy of large companies, including YUKOS, but this did not mean that it was going to buy YUKOS stocks.

"I think YUKOS has enough funds to pay its liabilities; it can sell its assets on the market," the Minister said.

According to him, foreign investments could rise 60 percent in 2004, remaining at the same level as last year. Mr. Kudrin said it was a sign that foreign investors did not see the YUKOS affair as “alarming”. He noted that many countries had tough tax laws, and the US tax authorities, for example, would take tougher measures in a similar situation.

YUKOS stocks rose 5.92 percent on the Moscow Interbank Currency Exchange during the first five minutes of trading on Monday.

Meanwhile, the Moscow Arbitration Court continues to consider the Tax Ministry’s appeal against a court ruling that YUKOS shall pay RUR 99.3bn (about $3.4bn) in back taxes and fines for 2000.

Last Friday, YUKOS’s lawyers filed a motion to disqualify judges hearing the appeal of the Tax Ministry. They expressed doubts about the impartiality of the court. But Anatoly Antoshin, Deputy Chairman of the Moscow Arbitration Court, rejected the motion.

The conflict between the Tax Ministry and YUKOS began at the end of last year, when the Tax Ministry completed the inspection of YUKOS’s tax payments for 2000. YUKOS is accused of evading taxes through artificially created companies registered in Russian regions and cities unlawfully offering additional tax breaks.

On December 29, the company received the results of the inspection, saying that it was guilty of wrongdoing and owed the state more than RUR 98bn in unpaid taxes and interest. Later, it raised the claim to RUR 99.3bn. On May 26, 2004, the Moscow Arbitration Court ruled that YUKOS should pay the money. In mid-April, the court banned YUKOS from selling or mortgaging its assets including shares, at the request of the Tax Ministry.