Yukos Files For Chapter 11 Protection
In a dramatic attempt to halt the auction of its main production unit, beleaguered
Russian oil firm Yukos has filed for Chapter 11 bankruptcy protection in the
United States. "Yukos is asking the court for a temporary restraining order halting the planned
Sunday auction of Yuganskneftegaz by Russian authorities," the company announced
in a statement. However, observers say that it is uncertain whether
the US courts will acknowledge jurisdiction. According to the Wall Street Journal, the Bankruptcy Court of the Southern
District of Texas set a "first day" hearing for the Yukos case for yesterday
morning. The Russian government claims that Yukos owes a total of $27.8 billion
in back taxes. Yuganskneftegaz was set to be auctioned on December 19 to cover
part of the tax bill. However, it has been suggested that the tax liabilities were engineered in
such as way as to allow the transfer of the key unit to a company with closer
connections to the Kremlin, such as state gas giant Gazprom. .
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