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Houston court rules on suspending sale of Yukos subsidiary
The ruling has no legal effect in Russia.

Russias oil giant Yukos requested to block the auctioning off of its main production unit Yuganskneftegaz in Moscow on Sunday.

The decision was taken by judge Letitia Clark at 19:00, local time /05:00, Moscow time/. Details of the case Yukos vs the Russian Federation will follow.

Yukos request was therefore granted. There have been no reports as what next moves the parties might make.

Earlier, spokesman for the U.S
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. Department of State Richard Boucher said the situation around Yukos was negatively affecting the investment climate in Russia.

Washington believes the Yukos case hurts the Russian economy, as well as Russias business reputation.

It also has negative political consequences, Washington said.

As for Yukos management having recourse to the Houston court, U.S. administration officials said it has the right to use any means of legal protection they deem necessary.

Boucher said the United States is worried over a number of issues, foremost how such cases are handled, to what degree legitimate contracts are honored and how the Russian government is going to treat independent corporations.

The administration is concerned over the legal aspect of the Yukos case, its influence on the investment climate, as well as prospects for further development of Russia, including its energy sector, according to Boucher.

MOSCOW, December 16 (Itar-Tass)



18.12.2004
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