BBC: State firm 'gains' key Yukos unit

[MaineDem]

The little-known company which bought the main asset of embattled Russian oil firm Yukos has reportedly been sold to state-owned Rosneft.

The Baikal Finance Group picked up Yukos' Yuganskneftegas unit on Sunday.

The Russian government had ordered its sale to enforce a $27bn (£14bn) back tax bill it says Yukos owes.

Rosneft's purchase of Baikal would seem to confirm the predictions of analysts who said that Yuganskneftegas would fall into government-controlled hands.

http://news.bbc.co.uk/2/hi/business/4119687.stm

[htuttle]

1. Bada-bing, bada-boom

Slick, Vladimir. Very slick.

[Robbien]

2. Yukos is now turning to US Courts to try and stop the break-up

YUKOS Says Gazprom Violated U.S. Court Order
http://www.reuters.com/newsArticle.jhtml?type=topNews&storyID=7163381

HOUSTON/MOSCOW (Reuters) - Stricken Russian oil firm YUKOS, turning to U.S. courts in a bid to halt the dismantling of the company, told a judge on Wednesday Russian gas monopoly Gazprom had illegally taken part in the weekend sale of YUKOS's core asset.

YUKOS said in filings to the U.S. Bankruptcy Court that Gazprom ignored a temporary restraining order issued last week by the court barring it from the auction on Sunday.

YUKOS filed for bankruptcy protection in Houston last week to stop the sale. Yugansk, which pumps 11 percent of Russia's oil, was sold to the obscure Baikal Finance Group for $9.4 billion.

The sale of Yugansk by Russian authorities to help pay YUKOS's back tax bill of more than $27 billion has shaken Russia's reputation among foreign investors and some global fund managers say the legal risks of operating in the country now outweigh the potential returns.

The White House said it was disappointed Russia went ahead with the auction of Yugansk, which Russian President Vladimir Putin said conformed with Russian law.

After a hearing on Wednesday, YUKOS spokesman Richard Mintz said Gazprom "participated in the auction. Without them the auction wouldn't have taken place."

If Gazprom is found in contempt of the U.S. court order, the supplier of energy to millions of Europeans could be left exposed to foreign asset freezes.

Gazprom said it had sold Gazpromneft, its oil unit that attended the Yugansk auction.

"All these allegations from YUKOS are nonsense. We have officially sold Gazpromneft to an unaffiliated company before the auction," said a Gazprom official.

Most analysts think Gazprom or Kremlin-linked firms will end up with Yugansk but YUKOS has yet to assert any link in court.

YUKOS has threatened legal action for $20 billion in damages against third parties participating in the sale, raising the prospect of oil cargo seizures abroad and adding to concerns over supplies from the world's second-biggest oil exporter. Continued ...

[muriel_volestrangler]

3. More detail

Gazpromneft was supposed to absorb all of Gazprom's oil assets. It was set up last year after the Russian government decided to merge Rosneft, the state-owned oil company, with Gazprom to increase its stake in the gas monopoly from 38 per cent to 51 per cent.

The merger has not yet been completed and Gazpromneft had no assets at the time of being sold.

http://news.ft.com/cms/s/b839879a-53bd-11d9-b6e4-00000e2511c8.html

So, Gazpromneft has no assets at all; Rosneft now has the assets of the old Rosneft, the old Yugansk, and if the merger with Gazprom goes ahead, those as well, ie everything. Lucky old Vlad.

[bemildred]

4. Sounds like them Russkis have learned a lot about "free enterprise". nt