YUKOS shares jump after court victory

Shares in Russian oil company YUKOS shot up today after a late Friday court ruling against bailiffs' seizure of its main oil …

Shares in Russian oil company YUKOS shot up today after a late Friday court ruling against bailiffs' seizure of its main oil unit, deemed the firm's biggest victory yet in its fight for survival.

The court is due to hear similar appeals from YUKOS on two other key production units.

YUKOS rouble-denominated shares were up 18 per cent at 129.60 this morning.

"This is perhaps the greatest victory for the company since the Justice Ministry's announcement a month ago that Yuganskneftegaz would be appraised for future sale," Mr Troika Dialog said in a morning research note.

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The seizure of Yuganskneftegaz, which accounts for more than 60 per cent of YUKOS's total output, and the planned sale of the unit were potentially the most crippling moves threatened by bailiffs charged with collecting $3.4 billion in taxes from the company.

The shares are still down about two-thirds from their peak in April this year, as action against YUKOS and its jailed founder Mikhail Khodorkovsky, accused of massive tax evasion, has gathered steam.

YUKOS has declined to comment in-depth on the Friday ruling.

"We see the legal victory as more an aberration than a sign the situation has changed for the better, as in recent months good news has quickly been followed by negative events," Aton brokerage said in a morning research note.

Aton has stopped rating YUKOS.

With the endgame in YUKOS's battle with the government yet to begin, the shares have been highly volatile.

"No one understands what is happening and there is still more emotion on the market than clear understanding of the situation," Renaissance Capital trader Mr Oleg Dobritsky said.