Russia plans sale of Yukos production unit

The Russian government plans to sell a majority stake in the main production unit of the embattled Yukos oil company at an auction on December 19, the Interfax news agency reported today.

The report appeared to confirm that the state intends to sell off the Yuganskneftegaz unit against Yukos’ multibillion back-tax debt to the government.

The agency said initial bids would be accepted today and the starting price would be 246.75bn rubles (€6.6bn).

That is significantly lower than the most conservative valuation made by a Western investment bank that assessed the company’s worth.

Investors have expressed concern that the unit, which pumps 60% of Yukos’ oil, will be sold to a Kremlin-friendly buyer at a price below its worth.