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Putin: Yukos sale OK under Russian law

[JURIST] Updating a continuing story on JURIST's Paper Chase, Russian President Vladimir Putin said Tuesday that Baikal Finance Group, the little-known company that bought the production arm of oil giant Yukos at auction from the Russian authorities over the weekend, had a long history in the energy sector and that the sale, which took place in the face of a US court injunction, followed Russian law and was an internal matter. Putin did not rule out state owned agencies buying the assets, however, and indicated they have a right to do. The deal has drawn widespread internal and international criticism for its lack of transparency. The Washington Post has more. AFP has more on the possibility of a eventual re-purchase of the Yukos oil arm by a unit of Russian state gas company Gazprom. Yukos, meanwhile, has issued the following statement on its bankruptcy website:

Yukos will pursue damage Recovery Actions relating to the over $20 billion damage that Yukos will suffer if sale of its Stock in Yuganskneftegas is consummated, and will pursue Recovery Actions against Parties who participate in such transactions or the financing thereof, or any other transactions relating to the Stock, as described above.

Yukos will also pursue damage Recovery Actions relating to interference with its employment relationships with its employees, and other actions that violate the automatic stay of the United States Bankruptcy Code that automatically became effective on the Petition Date, December 14, 2004, when Yukos filed its Chapter 11 case, including actions to obtain possession or control of property of Yukos’ Chapter 11 estate, and actions to collect from Yukos on any claims that arose prior to the Petition Date.
Read the full Yukos statement here.

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Paper Chase is JURIST's real-time legal news service, powered by a team of 30 law student reporters and editors led by law professor Bernard Hibbitts at the University of Pittsburgh School of Law. As an educational service, Paper Chase is dedicated to presenting important legal news and materials rapidly, objectively and intelligibly in an accessible format.

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