YUKOS' FIRST SETBACK IN AMERICAN COURT
The Don | 24.01.2005 18:10 | London | World
MOSCOW, January 24 (RIA Novosti) The oil major Yukos, which is seeking to reclaim $20 billion from Russia in America, has suffered its first defeat. A Texas court called into doubt Yukos' right to sue in the US. Until the oil company proves its right to American justice, all Yukos claims against Russia are meaningless, Gazeta newspaper writes.
Yukos managers filed the lawsuit with the Texas court last December, ahead of the sale of Yuganskneftegaz. They asked the court to declare the company bankrupt and impose a ban on sales of its assets. After its core production unit, Yuganskneftegaz, was sold at an auction on December 19, the company added a new claim to their action: $20 billion from the Russian government in compensation for Yugansk.
Russia's interests in the court are represented by Gazprom, which failed to win the Yugansk auction. Russia's presidential chief of staff Dmitry Medvedev, who is also Gazprom board of directors chairman, has attended the Texas hearings on several occasions.
According to Maria Radina, an analyst with investment company Finam, Yukos' arguments are fairly weak for the case to be heard in an American court, because the company's main activities are concentrated in Russia. The Texas court may refuse to declare Yukos bankrupt by citing a 2002 precedent when a service company, Dardana, filed an action against Yukos. Dardana accused the Russian firm of failing to pay $17 million for services rendered. Yukos won the case by proving that US jurisdiction did not apply to it.
An American court decision may have an impact on the Russian-US strategic partnership. If the judge rules in favor of Yukos, Gazprom may review its plans for the US, where it is going to start sending fuel this year. This threatens the US with a loss of up to 20% of liquefied natural gas deliveries, which the Americans plan to import from Russia. According to Alexei Makarkin, deputy head of the Center for Political Technologies, no judge willjeopardize his country's energy balance.
http://en.rian.ru/rian/index.cfm?prd_id=160&msg_id=5337135&startrow=41&date=2005-01-24&do_alert=0
Russia's interests in the court are represented by Gazprom, which failed to win the Yugansk auction. Russia's presidential chief of staff Dmitry Medvedev, who is also Gazprom board of directors chairman, has attended the Texas hearings on several occasions.
According to Maria Radina, an analyst with investment company Finam, Yukos' arguments are fairly weak for the case to be heard in an American court, because the company's main activities are concentrated in Russia. The Texas court may refuse to declare Yukos bankrupt by citing a 2002 precedent when a service company, Dardana, filed an action against Yukos. Dardana accused the Russian firm of failing to pay $17 million for services rendered. Yukos won the case by proving that US jurisdiction did not apply to it.
An American court decision may have an impact on the Russian-US strategic partnership. If the judge rules in favor of Yukos, Gazprom may review its plans for the US, where it is going to start sending fuel this year. This threatens the US with a loss of up to 20% of liquefied natural gas deliveries, which the Americans plan to import from Russia. According to Alexei Makarkin, deputy head of the Center for Political Technologies, no judge willjeopardize his country's energy balance.
http://en.rian.ru/rian/index.cfm?prd_id=160&msg_id=5337135&startrow=41&date=2005-01-24&do_alert=0
The Don