“The scenario is pre-determined by rules of procedure, we can hardly change it,” Mr. Gref said. “As far as I understand, YUKOS will not be declared bankrupt, but on the whole, the situation around the company had a negative impact on Russia’s investment climate. It would be better if this situation did not exist at all, but it would be still better if everyone paid taxes, so that such stories would not happen,” the Economy Minister said. In his opinion, all procedures connected with YUKOS’s property, should be transparent and based on market principles.

Ivan Materov, Deputy Minister for Industry and Energy, said it would be very difficult, from a legal point of view, to revoke oilfield licenses from Yuganskneftegaz, YUKOS’s main production subsidiary. According to him, if the Natural Resources Ministry decides to revoke the licenses, the company could challenge this decision in court.

In Mr. Materov’s opinion, the sale of Yuganskneftegaz must be as open as possible, and both Russian and foreign companies should be allowed to participate. Among Russian companies, he said Gazprom had a good chance to win.

“Gazprom is big enough to purchase Yuganskneftegaz,” Mr. Materov said. He added that the company also had enough cash. Mr. Materov noted that those companies that would acquire Yuganskneftegaz, would have to take out loans. Speaking about possible foreign buyers, Mr. Materov said it could be any large foreign company.

Assets of YUKOS’s subsidiaries are frozen, including its main production unit Yuganskneftegaz, accounting for about 60 percent of the total output. The freeze was imposed by court order as collateral against YUKOS’s RUR 99.4bn tax debt for 2000. The Justice Ministry plans to sell some of YUKOS’s assets through the Russian Federal Property Fund.