A New Blow To Investors In Russia

Russian oil company Yukos is about to be destroyed. That's the conclusion many investors in Russia are drawing, after court bailiffs said on July 20 that they plan to sell Yukos' main production subsidiary, Yuganskneftegaz, to pay $3.4 billion in back taxes. The announcement stunned analysts, who say the subsidiary is worth several times the value of the tax debt. Investors now fear a rigged sale to ensure a knock-down price, with companies linked to the Kremlin the likely beneficiaries. Yukos's share price plunged 25% on July 20 and 21.

Edited by Rose Brady

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