Russia again freezes assets of oil giant

MOSCOW -- The embattled oil company Yukos suffered a double blow Monday when authorities again froze assets of its key production unit and a court rejected its appeal against the seizure of another subsidiary's assets.

The moves were the latest in a series of back-and-forth decisions that have sent the stock price of Russia's largest oil producer on a rollercoaster ride and rattled world markets fearing a break in supplies.

The new freeze on assets of Yuganskneftegaz, the core Yukos subsidiary that produces some 60 percent of its crude, reversed one of the few victories for the company, which faces a $3.4 billion back-tax bill.

The move by bailiffs seeking to collect on the bill came three days after a court declared the seizure of Yuganskneftegaz illegal. That verdict sent Yukos stock up sharply, easing fears the government would gut Yukos and sell its main asset into Kremlin-friendly hands.

In Friday's ruling a Moscow Arbitration Court judge said the action violated a law that says production assets can be seized only if a debtor lacks cash and other nonproduction assets to cover a tax bill.

But on Monday, the Justice Ministry said bailiffs renewed their seizure of Yukos shares in Yuganskneftegaz immediately after the court's verdict, arguing they cannot be considered production tools and therefore can be frozen, the Interfax news agency reported.

Yukos has warned it could face bankruptcy as early as this month if the state does not give it access to frozen bank accounts and sells off Yuganskneftegaz, its main cash earner.

In another blow Monday, the arbitration court left in place bailiffs' seizure of the assets of Tomskneft, another Yukos subsidiary. The decision -- followed by the news of the new Yuganskneftegaz seizure -- came in the evening, after Yukos shares rose 17 percent on Moscow's RTS exchange in the wake of the company's court victory Friday.

Friday's ruling was a rare piece of good news for Yukos amid a campaign of court cases and tax claims that is widely regarded as punishment for the growing clout of the company's jailed former CEO Mikhail Khodorkovsky.

The recent rulings have created suspicions about the government's intentions, as well as prompting claims of shady stock profits based on inside information.

"It's quite obvious that officials and lawmakers, who have access to inside information, are using it in market speculation," oil analyst Grigory Vygon told the NTV television.

The arbitration court also said Monday that it will consider a Yukos appeal of bailiffs' seizure of a third main production unit, Samaraneftegaz, on Sept. 2, Interfax reported.

Regardless of rulings on the production units -- which can be appealed -- Yukos has urged the government to unblock its accounts frozen under an earlier court order.

Last month, Yukos CEO Stephen Theede warned that oil shipments by rail could be partially halted in the second week of August unless the company was given access to its frozen bank accounts. However, the head of marketing at the country's rail monopoly Russian Railways, Marina Kovshova, said Monday there was no immediate danger of an interruption in Yukos shipments.

Yukos has paid its railway and river barge fees through the end of August, Dow Jones NewsWires reported, citing an unnamed source close to the company. Yukos has said that its bills with state-controlled pipeline operator Transneft are also covered for the same period.

The legal actions against Yukos and Khodorkovsky, who is on trial on fraud and tax evasion charges along with another top shareholder in the company, have raised concerns about Russia's commitment to the rule of law and protection of shareholder and investor rights.