Update 2: Russia: China Will Pay for Oil Deliveries
09.23.2004, 03:49 PM
The head of Russia's state-owned railroad network said Thursday that a Chinese oil company would cover the embattled Yukos oil company's rail transport bills for October, the Interfax news agency reported.
Earlier this week, Yukos announced it would cut 100,000 barrels per day of crude supplies to China's National Petroleum Corp., as the beleaguered Russian company fights to pay off crippling back tax bills of about $7 billion.
The announcement alarmed China, which has sharply increased its oil imports from Russia in recent years as it tries to meet the needs of its surging economy.
After meeting with his Chinese counterpart Thursday, Russian Railways chief Gennady Fadeyev said a Chinese company would pay for Yukos's deliveries next month.
"In connection with certain difficulties Yukos is having paying for supplies to China, the Chinese company is prepared to pay for oil supplies in advance for October," Fadeyev was quoted as saying by Interfax. He did not specify which Chinese oil company.
Meanwhile, Chinese Prime Minister Wen Jiabao arrived in Moscow Thursday to meet with top officials on Russia's bid to join the World Trade Organization and China's efforts to secure a steady supply of Russian oil.
Chinese state media say oil imports from Russia jumped 73 percent last year to 36.7 million barrels.
The news that crude deliveries to China would be cut came as the Yukos board of directors met to discuss the company's dire situation. After the meeting, Yukos chairman Viktor Gerashchenko told the Interfax news agency that the board instructed Yukos management to "do everything so that the company survives, fulfill all contracts and pay taxes."
"If the management finds it difficult because of export customs to fulfill foreign contracts, then they must fulfill at least domestic (contracts)," Gerashchenko said, according to Interfax. He also reiterated his belief that Yukos would not be forced to declare bankruptcy, pinning his hopes on President Vladimir Putin's statement in June that the government is not interested in Yukos' bankruptcy.
"We consider that our president doesn't throw words to the wind," Gerashchenko said.
Yukos, which is Russia's largest oil producer and pumps 20 percent of the nation's crude, faces a debilitating tax bill, and its former CEO billionaire owner Mikhail Khodorkovsky has been jailed and charged with tax fraud and evasion. The legal actions are widely seen as punishment for Khodorkovsky's dabbling in politics and funding opposition parties in the run-up to parliamentary elections last year.
Analysts expect key Yukos assets will be sold to Kremlin-friendly hands to pay off back tax debts that are expected to grow to over $10 billion for the 2000-2003 period.
Putin has repeatedly said that the government does not want to bankrupt the company and that the case is aimed at stamping out shady tax-minimizing schemes.
Thursday's board meeting also discussed details of the split with the Sibneft oil company, Gerashchenko said. The two companies agreed to merge last year, but Yukos legal woes ended that effort.
Meanwhile, investigators from the Prosecutor General's Office searched Tomskneft, a key production unit that provides the oil that Yukos exports to China, Interfax reported.
The search was connected to one of the many cases against the oil company and did not affect production, a Yukos spokesman told the agency.
forbes.com
2004-09-23 18:03:00 Chinese side ready to pay for YUKOS oil supplies to China.
Astana - Moscow, September 23 KAZINFORM - The Chinese side is ready to pay for oil supplies to China by Russia's YUKOS oil major, president of the Russian Railways Company Gennady Fadeyev said after talks with Chinese Railways Minister Liu Zhijung on Thursday. Fadeyev also said 2.8 million tonnes of oil are yet to be shipped to China to complete the fulfilment of the oil supply contract between YUKOS and Russian Railways.
The official noted as well that one of the two Chinese companies cooperating with YUKOS is ready to defray the expenses, although admitted he knew nothing about which company will do so, Kazinform refers to Itar-Tass.
inform.kz |
