Yukos Seeks $20 Billion In Damages From Russian Government

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

10 January 2005

Yukos is on the verge of following through with its threat of legal action against the Russian government and those who participated in what it sees as the illegal auction of its Yuganskneftegas unit, the Financial Times revealed on Friday.

According to the UK business daily, the ailing oil firm is planning in mid-February to launch a $20 billion damages claim against all the major players in the auction, which include Baikal Finance (which initially acquired Yugansk), Rosneft (which bought the unit from Baikal, and plans to merge with state-owned Gazprom), and Gazprom itself.

However, Yukos has reportedly not reached a decision on whether to include in the claim the Western banks which formed the syndicate backing Gazprom's aborted bid for the unit.

Meanwhile, the bankruptcy judge hearing Yukos' claim for Chapter 11 bankruptcy protection in the United States announced last week that on February 16, she will hear a motion to dismiss filed by Deutsche Bank.

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