Yukos warns of impending bankruptcy

Russia's Yukos said today a liquidity deficit was threatening to hit oil export operations and the sale of its Yugansk unit ordered…

Russia's Yukos said today a liquidity deficit was threatening to hit oil export operations and the sale of its Yugansk unit ordered by Russian courts could mean a failure to fulfil export contracts.

"Even if the current liquidity crisis were to be overcome, the company, as a result of the forthcoming sale of its main production asset, may still be forced to file for bankruptcy and it may not be able to fulfill the export contracts, which have been concluded," it said in a statement.

The statement added: "The actions of the bailiffs service and the latest statement of the Justice Ministry have made it virtually impossible for the company to raise debt financing and because of the freeze of its assets it is unable to raise funding through the disposal of assets.

"In such a situation, a liquidity deficit might occur which would require a stoppage of operations. Such a stoppage would have a significant impact on crude oil and product exports from the Russian Federation, severe shortages of refined products for domestic fuel markets, and a large reduction in the taxes and duties that are paid to the Russian Federation."