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Yukos Says It Will Not File For Bankruptcy

Former Yukos head Mikhail Khodorkovskii (file photo) 22 September 2004 -- Viktor Gerashchenko, the chairman of Russia's embattled oil giant Yukos, was cited by a Russian newspaper today as saying that the company will not file for bankruptcy.

Gerashchenko told the newspaper "Kommersant-Daily" that despite the difficult financial situation Yukos is facing, filing bankruptcy could be challenged by the authorities as illegal.

Gerashchenko said a quote "premature announcement could be considered a false declaration of bankruptcy, which would threaten Yukos employees with new criminal investigations."

Russian tax authorities are trying to collect some $7 billion that they say Yukos owes in back taxes. Former Yukos chief Mikhail Khodorkovskii remains in jail, facing charges of fraud and tax evasion.

The Russian company's legal problems have contributed to the increase in world oil prices.