RUSSIA: YUKOS SHARES PLUNGE AFTER NEWS THAT BAILIFFS SEIZE NINE HUNDRED MILLION DOLLARS FROM THE COMPANIES ACCOUNTS FOR BACK TAXES.
Record ID:
647146
RUSSIA: YUKOS SHARES PLUNGE AFTER NEWS THAT BAILIFFS SEIZE NINE HUNDRED MILLION DOLLARS FROM THE COMPANIES ACCOUNTS FOR BACK TAXES.
- Title: RUSSIA: YUKOS SHARES PLUNGE AFTER NEWS THAT BAILIFFS SEIZE NINE HUNDRED MILLION DOLLARS FROM THE COMPANIES ACCOUNTS FOR BACK TAXES.
- Date: 6th August 2004
- Summary: (U4) MOSCOW, RUSSIA (AUGUST 6, 2004) (REUTERS - ACCESS ALL) 1. VARIOUS: EXTERIOR OF YUKOS BUILDING. (2 SHOTS) 0.16 2. MV: YUKOS SIGN BY ENTRANCE. 0.24 3. WS: TRADING HALL OF TROIKA DIALOG INVESTMENT BANK. 0.29 4. MV/WS: OF TRADERS AT WORK. (2 SHOTS) 0.41 5. CU: ELECTRONIC BILLBOARD OF SHARE INDEXES. 0.45 6. SCU: (SOUNDBITE)(English) GERRIT HEYNS, HEAD OF EQUITY SALES AT TROIKA DIALOG INVESTMENT BANK IN MOSCOW, SAYING: "The world is looking to YUKOS for changes in the prices of oil. What we have now is the real potential of disruption to the operations of YUKOS, which clearly will have an impact on the rest of the world. YUKOS produces about one million barrels of oil a day and to have those taps turned off will certainly have an effect on international (oil) prices. We are hoping that that (a stopping of YUKOS oil production) would be averted but the situation is drawing closer as we get to the middle of the month, when YUKOS will potentially run out of the cash." 1.23 7. SCU: FINANCIAL MARKET TRADERS AT MONITORS. 1.30 8. MV: EXTERIOR OF YUKOS BUILDING. 1.36 9. CU: YUKOS SIGN. 1.41 10. MV: EXTERIOR OF YUKOS BUILDING. 1.48 (U4) NEFTEYUGANSK, SIBERIA, RUSSIA (FILE - JULY 26-27, 2004) (REUTERS - ACCESS ALL) 11. VARIOUS: OIL PUMPS WORKING AT YUKOS OIL FIELDS AROUND NEFTEYUGANSK, SIBERIA. (3 SHOTS) 2.08 12. TRAVEL: YUKOS OIL WORKER WALKING BETWEEN OIL PUMPS. 2.13 13. MV: MORE OF OIL PUMPS. 2.22 Initials Script is copyright Reuters Limited. All rights reserved
- Embargoed: 21st August 2004 13:00
- Keywords:
- Location: MOSCOW, RUSSIA/ NEFTEYUGANSK, SIBERIA, RUSSIA
- Country: Russia
- Reuters ID: LVA1KD5DAXLORL142D3D76CBAOXS
- Story Text: YUKOS shares plunge after news that bailiffs sezie
$900 million from the company's accounts.
Russian oil major YUKOS has no money in its bank
accounts after bailiffs seized $900 million on Thursday
(August 5) to cover its back-tax bill, a financial source
said on Friday (August 6).
"They have no money to fund their basic operations.
Production needs can still survive for a few weeks, but the
time is coming to pay transportation fees," the source
said, adding that the money was seized from Russian bank
accounts.
YUKOS, which has repeatedly warned that it needs at
least 400 million US dollars in its Russian bank accounts
to fund core operations such as transportation fees to
ensure oil exports, declined to comment on the report.
"All we can say is that we still haven't got a new
bailiffs' order that freezes our bank accounts again,"
YUKOS spokesman Alexander Shadrin told Reuters. The
bailiffs service was not immediately available for comment.
YUKOS, Russia's largest oil exporting firm, has said it
had pre-paid August transportation fees to pipeline
monopoly Transneft but would need to find money by the
middle of August to pay for exports in September.
It has also said that railway shipments have been
pre-paid until August 10 and the firm may be forced to
reduce output as it has no spare storage capacity to
accumulate its barrels if its access to railway shipments
is shut.
YUKOS shares were down almost 15 percent at 101 roubles
by 0913 GMT. The firm has warned that it could be driven
bankrupt by the demand to pay $3.4 billion in back taxes
for 2000 by the end of August. It syas that it can only pay
off $1.8 billion by that time.
"The world is looking to YUKOS for changes in the
prices of oil. What we have now is the real potential of disruption to
the operations of YUKOS, which clearly will
have an impact on the rest of the world. YUKOS produces
about one million barrels of oil a day and to have those
taps turned off will certainly have an effect on
international (oil) prices. We are hoping that that (a
stopping of YUKOS oil production) would be averted but the
situation is drawing closer as we get to the middle of the
month, when YUKOS will potentially run out of the cash,"
said Gerrit Heyns, head of equity sales at Troika Dialog
Investment bank in Moscow.
YUKOS's plight, and that of founder Mikhail
Khodorkovsky, who is on trial for fraud and tax evasion, is
widely seen as Kremlin retribution for Khodorkovsky's
political ambitions.
Oil prices have rocketed in the past weeks partly on
concerns over YUKOS. Some analysts said it may be forced
soon to cut output now running at 1.7 million barrels per
day - or a fifth of Russia's total.
After Friday's renewed threat to YUKOS, combined with a
fire at a big U.S. refinery, U.S. light crude hit $44.77 a
barrel and London's Brent crude hit $41.50, both records
since international oil futures trade began.
However other analysts were sceptical, saying YUKOS was
just trying to scare the market and the government.
"YUKOS would be forced to halt production by the end of
August unless the bailiffs reverse course once again and
allow the use of accounts to finance operations," said Alfa
Bank.
"The only option the company still has at this point is
to opt for voluntary bankruptcy. This would at least allow
it time of up to six months to continue normal operating
activity while due process unfolds."
U.S.-based Energy Security Analysis said last week it
considered all fears about export disruptions from Russia
unfounded. It called YUKOS's warning signals "a plea for
sympathy rather than a real concern".
"Russian companies are extraordinarily adept at
redirecting cash flows through multiple accounts and using
alternative payment means to keep production running", it
said in a research note.
"Should the government use its control over the
pipeline network to block YUKOS exports, the freed capacity
will be filled by other majors".
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