Another setback for Yukos

Russia’s Justice Ministry today revoked permission granted by bailiffs for the beleaguered oil giant Yukos to use previousl- frozen funds to pay for day-to-day operations.

The move came just a day after Yukos said it had received permission from the ministry’s bailiffs service to use its bank accounts for operational costs, a decision the company said would help keep it afloat for the time being and make payments on its mounting tax debt.

The ministry said the missive from bailiffs was not “based on legal norms”.

“All funds that have come onto the company’s accounts or will come onto the company’s accounts will be arrested and transferred to the budget as payment for the debt,” the ministry said in a statement.

Yukos shares plummeted 14% on the news .

Yukos faces a potentially crippling near-€3bn back tax bill for 2000. Yukos managers had warned that unless the company gained access to accounts it said were frozen around the beginning of July, it could be forced to halt operations and driven out of business.