Yukos in bid to stay afloat

IN a desperate bid to stay in business, the beleaguered Russian Yukos oil giant has filed for bankruptcy and is demanding the cancellation of this weekend’s auction of its main production unit.

While the move is a dramatic challenge to the Russian government to enter arbitration proceedings, analysts doubt the appeal will halt what is being called a Kremlin-ponsored carve-up of the nation’s largest oil producer.

Yukos filed for bankruptcy in Houston, Texas, yesterday. It says the auction of its main production subsidiary Yuganskneftegaz by Russian authorities is illegal. It asked the court for an order halting the sale scheduled for Sunday.

“If the auction is consummated, Yukos will be permanently, severely and irreparably damaged,” the company said in its injunction request filed with the US Bankruptcy Court.

Chief executive Steven Theede called the move “the only resort” left for Yukos, which the Russian government has targeted in a relentless legal campaign that has sent its value plunging.