25 February 2005 -- The Russian oil company Yukos has lost its bid for bankruptcy protection in the United States.
U.S. Bankruptcy Judge Letitia Clark ruled late yesterday that Yukos does not have a big enough presence in the United States to allow the establishment of U.S. jurisdiction over the case.
She ruled that since the vast majority of the business and financial activities of Yukos occur in Russia, the case belongs in a forum that includes the participation of the Russian government.
Yukos said in a statement that the ruling was "regrettable" and that the company will consider all available options in deciding its next steps.
Yukos had filed for bankruptcy in the Houston, Texas, court in December in a failed effort to stop the auction of its main oil-producing unit.
The Russian government sold the Yukos unit to pay back some of the $27.5 billion debt it says Yukos owes. Yukos claims it has been targeted by the authorities for political reasons.