Menatep Files Suit Against Russia

    February 9, 2005

Yukos owner, Menatep has filed a $28.3 billion suit against the Russian government for damages after it seized and sold Yukos.

“We served a notice of arbitration on the Russian Federation … That number (of $28.3 billion) will get more precise as we go through the forensic accounting exercises to calculate the loss of profits,” said Menatep’s managing director, Tim Osborne.

“At the moment, that figure is the loss of share value from its (YUKOS stock) peak to today plus an estimate of what we think the share price would have been had the Russian government not interfered.”

Russia confiscated Yukos’ main oil-producing unit, Yuganskneftegaz, and sold it for nearly $9.3 billion to Rosneft which is state-owned .

According to a Bloomberg article,

“Menatep filed a notice with the Russian government in November requesting talks over the proposed sale of Yugansk and the tax claims against Yukos, Osborne said today in a telephone interview. ‘Three-month notice expired at the end of January, early February, and now arbitration requires the parties to nominate’ two arbitrators that will choose the third one.

Osborne declined to say how long it might take to chose the arbitrators and decide on a court.

Menatep also served a notice of demand to Yugansk seeking $800 million to $900 million loaned to Yukos, Osborne said. Yukos borrowed $1.6 billion from Menatep in 2003, with repayment guaranteed by Yugansk oil sales. Rosneft took over Yugansk on Dec. 31 and is now selling its oil.”

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