Yukos core unit bought for 'fraction of worth'

A previously unknown Russian company called BaikalFinansGroup bought the core production unit of oil giant Yukos at auction for €7bn today, gaining control of one of Russia’s most prized oil assets for a fraction of what Yukos executives say it is worth.

The Yuganskneftegaz unit, which produces 60 % of Yukos’ output, was auctioned ostensibly to pay off some of the €21bn in back taxes the government says are owed by Yukos, Russia’s largest oil producer.