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Ernst and Young Appointed To Help Yukos Asset Sell-Off

by Tatiana Smolenskaya, Tax-News.com, Moscow

28 August 2006

Accounting firm Ernst and Young has been appointed to advise on the sale of the remaining assets belonging to Yukos, the bankrupt Russian oil company.

Yukos, declared bankrupt earlier this month, owes about $18.4 billion to its creditors, which include the Federal Tax Service and state-owned rival Rosneft.

Yukos's remaining Russian assets include its ArcticGaz unit, its Angarsk refinery, and a 20% stake in Gazprom Neft. Its non-Russian assets include a $1.5 billion stake in a Lithuanian refinery and a 49% stake in Transpetrol, a Slovakian pipeline company.

However, Yukos's most prized production asset, Yuganskneftegaz, was snapped up by Rosneft in an auction last year.

It is widely expected that Rosneft will buy up much of the company's remaining assets, although Rosneft could face competition from Gazprom, the state-owned gas monopoly.

Gazprombank, a unit of Gazprom, has been appointed alongside E&Y as an advisor to the asset sell-off.

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