Russia Says Yukos Auction Is Internal Affair, Rejects US Bankruptcy Court

[NNN0LHI]

http://ap.tbo.com/ap/breaking/MGBPS1G1V2E.html

Russia Says Yukos Auction Is Internal Affair, Rejects U.S. Bankruptcy Injunction

MOSCOW (AP) - Russia is vowing to proceed with an auction of oil giant Yukos' key production subsidiary, saying a U.S. court ban is irrelevant. But the expected winner of Sunday's auction, the state-run Russian gas company Gazprom, may not be able to pay after a consortium of Western banks reportedly put on hold billions of dollars in credit it needs to fund its bid.

U.S. Bankruptcy Judge Letitia Clark granted Yukos' request on Thursday for a temporary restraining order delaying for 10 days the auction of the Yukos unit, Yuganskneftegaz. Russian officials said on Friday the ruling was irrelevant on Russian soil.

"The sale of Yuganskneftegaz is an internal matter for Russia," Prime Minister Mikhail Fradkov was quoted as saying by Russian news agencies Friday.

Foreign Minister Sergey Lavrov said the U.S. court decision would have no legal force in Russia.

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[Dover]

1. Gee, wonder what the world court would rule on something like this?

Too bad we're not members.....

No more legal clout in the world...just threat of force or withholding. Ya have to be pretty secure economically, too, for these kinds of games...and Lord knows we're not. And Germany's banks can't afford to play games with their oil/gas supplier.