Yukos Says It May Declare Bankruptcy

Jailed former Yukos head Mikhail Khordorkovskii (file photo) 22 July 2004 -- The Russian oil firm Yukos says it will declare bankruptcy soon if it is forced to sell off its prize asset to cover tax arrears.

Yukos today released a statement saying it will be compelled to declare banktruptcy if the company has to sell its subsidiary company Yukanskneftegas.

Russia's Justice Ministry said yesterday that authorities will sell seized shares in Yukanskneftegaz to meet part of Yukos's unpaid taxes. A ministry statement said shares in Yukanskneftegaz will be turned over to the Property Fund, the agency that is the nominal owner of Russia's state assets.

Tax authorities are seeking nearly $7 billion in back taxes for 2000 and 2001.