"Auction of Yukos Dutch assets was illegal"

31st October 2007, Comments 0 comments

31 October 2007, THE HAGUE (AFP) - A Dutch court ruled Wednesday that the sale of foreign assets held by Yukos Finance, the Dutch subsidiary of Russian oil giant Yukos, was illegal on grounds that a Russian bankruptcy move against Yukos was invalid under Dutch law.

31 October 2007

THE HAGUE (AFP) - A Dutch court ruled Wednesday that the sale of foreign assets held by Yukos Finance, the Dutch subsidiary of Russian oil giant Yukos, was illegal on grounds that a Russian bankruptcy move against Yukos was invalid under Dutch law.

In a final auction to dispose of Yukos assets, arranged by the company's liquidator, Yukos Finance was sold for EUR 224 million to a former subsidiary of the Russian state-controlled oil group Rosneft.

Yukos Finance had assets of around USD 2.0 billion.

Yukos was declared bankrupt with debts of USD 27.5 billion (EUR 20 billion euros) after a Russian government tax fraud probe that was seen as politically motivated.

Former Yukos chief executive Mikhail Khodorkovsky was handed an eight-year prison sentence that was widely seen as punishment for his defiance of Russian President Vladimir Putin.

In its ruling Wednesday, the Dutch court slammed the Russian bankruptcy action against Yukos.

"Yukos Oil has been deprived of a fair trial in the determination of the amount of taxes it owed to the Russian state," the judges said.

Because the Russian bankruptcy decision cannot be recognised under Dutch law, the decisions of administrator Edward Rebgun were declared null and void by the Dutch court.

[Copyright AFP 2007]

Subject: Dutch news

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