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US court ruling tries to halt Yukos subsidiary sell-off

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US court ruling tries to halt Yukos subsidiary sell-off

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It is unclear whether Russian authorities will take any notice, but a bankruptcy judge in Houston in the US has issued a temporary restraining order to halt the imminent auction of the main subsidiary of Russia’s Yukos oil company. The case was brought by Yukos’s chief financial officer, whose spokesman is Mike Lake.

“If they sold Yuganskneftegas, it would tear the heart out of our company,” said Lake. “That is the lifeblood of the organisation. As you heard today, it was over 60 percent of our production.” The auction of the subsidiary is planned to go ahead on Sunday. It was ordered by Russian authorities in the ongoing dispute over billions of euros in taxes the government says are owed by Yukos.

Analysts have said they expect the auction to go ahead, regardless of any ruling in the US.