In mid-June, YUKOS’s managers sent a letter to Russian Prime Minister Mikhail Fradkov proposing their plan on how to solve the company’s conflict with the tax authorities. They suggest that YUKOS buy out the controlling stake from its main shareholder, Group Menatep, with a view to selling the shares to investors proposed by the government. To pay the tax claims, YUKOS is ready to sell some of its assets, including Sibneft, the Eastern Siberian Oil Company and gas companies. YUKOS asks for the right to pay by installments over two years, so that it could carry out its industrial and social programs.

The government and the presidential administration have not yet responded to YUKOS’s proposal. The Board of Directors of the company itself also failed to decide on the plan offered by its managers. According to a source close to the Board of Directors, the document was considered and “taken into account”. “They expressed support but did not vote on the issue,” the source said.

Meanwhile, this uncertainty unnerves the company’s managers. Several sources close to YUKOS said Chief Financial Officer Bruce Misamore had tried to tender his resignation on Wednesday, but he was persuaded to stay. One source said Mr. Misamore was concerned about political and financial instability in the company. Analysts say the Board of Directors does not play an important role in this situation, as in fact everything depends on the authorities. As for Mr. Misamore’s attempt to resign, analysts say it will have a bad impact on the market. For investors, Mr. Misamore has been the face of the company, and he is respected by minority shareholders. His resignation would affect the image of YUKOS.

YUKOS’s general meeting is scheduled for Thursday, June 24. A new Board of Directors will be elected at the meeting.