- Title: RUSSIA: OIL MAJOR YUKOS SAYS NOT PLANNING PENALTY FOR SIBNEFT DEMERGER
- Date: 19th December 2003
- Summary: (EU) MOSCOW, RUSSIA (DECEMBER 17, 2003) (REUTERS) 1. YUKOS MANAGEMENT SITTING DOWN FOR NEWS CONFERENCE; MEDIA; MV YUKOS MANAGEMENT SEATED AT TABLE 2. (SOUNDBITE) (Russian) YURI BEILIN, YUKOS VICE-PRESIDENT SAYING "Last week there were preliminary negotiations with Millhouse, where we discussed ways of doing a reverse deal. No legal documents were signed. And I'd like to draw your attention to the fact that the deal on acquiring 92percent of Sibneft shares ended in the beginning of October. So at present the Sibneft stake belongs to Yukos like Siberian Priopsk oil field belongs to us." 3. MEDIA 4. (SOUNDBITE) (English) STEVEN THEEDE, YUKOS CHIEF OPERATIONS OFFICER SAYING "Our basic strategies are not going to be different if we go forward just as Yukos first or if we go forwards as Yukos-Sibneft. You know, the four fundamental areas that we would focus on in either case is first of all growth, we're going to continue to grow this company." 5. MEDIA 6. (SOUNDBITE) (English) THEEDE SAYING "What directionally we want to do is we want to create growth opportunities that are more international in nature. And so you know, we've stated that in the past that we're looking for international opportunities and will continue to do that." 7. SLV NEWS CONFERENCE WITH YURI BEILIN COMMENTING ON YUKOS OIL EXTRACTION GROWTH; SCU SCREEN SHOWING GRAPHICAL INCREASE IN EXTRACTION AND PRODUCTION OF OIL; SLV NEWS CONFERENCE 2.20 8. SLV ENTRANCE TO YUKOS OFFICE BUILDING WITH SIGN; SLV YUKOS BUILDING 2.31 (EU) MOSCOW, RUSSIA (FILE - JULY 2003) (REUTERS) 9. MV FORMER YUKOS BOSS MIKHAIL KHODORKOVSKY WITH YOUNGSTERS AT YUKOS-SPONSORED YOUTH CAMP 2.47 (EU) MOSCOW, RUSSIA (FILE - JULY 2003) (REUTERS) 10. SLV MASKED POLICE INSIDE OFFICES HOLDING YUKOS'S DOCUMENT ARCHIVES 2.54 (EU) MOSCOW, RUSSIA (FILE - OCTOBER 25, 2003) (REUTERS) 11. MV POLICE VAN TAKING MIKHAIL KHODORKOVSKY TO JAIL IN MOSCOW; SLV POLICE VAN WITH MIKHAIL KHODORKOVSKY HEADS OFF TO JAIL 3.13 (EU) VARIOUS LOCATIONS, RUSSIA (FILE) (REUTERS) 12. SLV TRUCK DRIVING THROUGH OIL FIELD; SLV OIL DRILLING EQUIPMENT; SLV OIL FIELDS (4 SHOTS) 3.42 Initials Script is copyright Reuters Limited. All rights reserved
- Embargoed: 3rd January 2004 12:00
- Location: MOSCOW, RUSSIA
- Country: Russia
- Reuters ID: LVA20TQ8IQP8HBCOTYJH38G6V8AW
- Story Text: Russia's major Yukos says not planning penalty for
Russian oil major Yukos said on Wednesday (December
17, 2003) it would not demand a $1 billion break-up fee from
estranged merger partner Sibneft as both sides look for a
way to dissolve their ill-fated union.
Yukos Vice President Yuri Beilin told a news conference
in Moscow that negotiations had been held with Millhouse,
the management company of Sibneft's main shareholder Roman
Abramovich, but no legal document to end the merger has yet
"Last week there were preliminary negotiations with
Millhouse, where we discussed ways of doing a reverse
deal," Beilin said. "No legal documents were signed."
He also said Yukos still considered it owned 92 percent
share of Sibneft.
"I'd like to draw your attention to the fact that the
deal on acquiring 92 percent of Sibneft shares ended in the
beginning of October. So at present the Sibneft stake
belongs to Yukos like Siberian Priopsk oil field belongs to
us," said Beilin.
The original merger deal, announced in April, was known
to have included a $1 billion penalty clause to be invoked
if one of the parties decided to abort the merger.
But Beilin said both parties were discussing a new
agreement to wind up the merger and therefore payment of a
$1 billion break-up fee would have no part in it.
Yukos' Chief Operations Officer Steven Theede said the
company's basic strategies would not change due to divorce
with Sibneft. "Our basic strategies are not going to
be different if
we go forward just as Yukos first or if we go forwards as
Yukos-Sibneft. You know, the four fundamental areas that we
would focus on in either case is first of all growth,
we're going to continue to grow this company," he said.
The merger was overshadowed by the arrest in October of
oil tycoon Mikhail Khodorkovsky, at the time Yukos's chief
executive and one of the architects of the union. The
arrest sent Yukos's share price into a tailspin.
Yukos has been subjected to relentless pressure from
state prosecutors which are investigating the company's tax
Many analysts believe the assault was triggered by the
Kremlin's desire to punish Khodorkovsky for his political
Sibneft announced it was calling off the merger in
November. Shareholders from both companies have sent
conflicting messages in recent weeks as to whether the
merger could be salvaged but are now in agreement that they
want to end it.
Under the merger deal, Yukos paid Sibneft's main
shareholders $3 billion in cash and swapped 26 percent of
Yukos's stock for 92 percent of Sibneft's shares.
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