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Russian Finance Minister Hints At Clemency For Yukos

by Tatiana Smolenskaya, for LawAndTax-News.com, Moscow

08 July 2004

Speaking prior to yesterday's deadline for partial payment of its tax liability, Russia's Deputy Finance Minister, Sergei Shatalov hinted that troubled oil firm, Yukos might be able to negotiate longer to pay its debts.

"To do this, we need a request from Yukos," he told reporters in Moscow, before revealing that: "So far, we haven't had one."

He went on to add that:

"I cannot rule out that a decision on restructuring could be taken, because this is no ordinary case."

The suggestion that the Russian authorities were prepared to treat the firm, which accounts for nearly 20% of the country's oil exports, with a certain amount of leniency was welcomed by shareholders, and by international banks which have lent to Yukos.

However, reports published on Wednesday afternoon suggested that bailiffs had begun to execute a court order validating the Government's claim against the oil firm, meaning that their hopes may well be dashed yet again.

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