Russia's state gas giant Gazprom has earmarked 3.75 billion dollars in its 2007 budget to purchase a 20 percent share in its oil unit, Gazprom Neft, from the bankrupt oil company Yukos, according to Interfax. The allocated sum represents roughly a 3.6 percent discount to Gazprom Neft's market valuation of 3.89 billion dollars.
Earlier negotiations between Gazprom and Yukos over the stake collapsed after Yukos announced plans to sell its assets publicly. The gas monopoly's board is scheduled to ratify the budget at a 29 November meeting. Interfax cited no source, and Gazprom has offered no official comment.
The Gazprom Neft holding is among the remaining fragments of the business empire once controlled by Mikhail Khodorkovsky. Deutsche Bank has reportedly been involved in discussions about acquiring other Yukos remnants.
Yukos and Khodorkovsky came under heavy government pressure in 2004 through tax claims totaling 25 billion dollars, widely interpreted as a politically motivated campaign. A Moscow court declared Yukos bankrupt on 1 August after finding its debts of 18 billion dollars exceeded its market value of 17 billion dollars.
Gazprom entered oil production by buying Roman Abramovich's stake in Sibneft, subsequently renamed Gazprom Neft, now Russia's fifth-largest oil producer.
Historical summary. TurkishPress restated this wire report, first published in November 2006, in its own words.