Executives and shareholders of Yukos, Russia's biggest oil firm, vented their fury yesterday at Russia's decision to auction its main production unit at a rock-bottom price to help pay off tax arrears of over $20 billion (€15 billion).
The sale on December 19th - a day before shareholders were due to discuss bankruptcy - would cripple a company seen as Russia's most efficient and transparent until it came under fierce legal attack 16 months ago.
As Yukos shares plunged more than 30 per cent, analysts immediately made state-friendly Russian firms the favourites to snap up the jewel in the crown of Yukos, the creation of jailed tycoon and Kremlin critic Mr Mikhail Khodorkovsky.
"What we are witnessing is, simply put, government-organised theft to settle a political score," said Yukos CEO Mr Steven Theede, reiterating a widespread belief that the government is trying to crush Mr Khodorkovsky and silence other potential foes.
"The starting price bears no resemblance to the true value of Yugansk, one of the world's premier oil-producing firms, and amounts to the theft of Yukos assets," Mr Theede said, referring to the unit to be sold at a starting price of $8.65 billion.
That figure is below even the most conservative estimate of independent evaluators, and less that half the value put on Yugansk by most analysts.
The Siberian unit pumps 1.7 million barrels per day - equivalent to 60 per cent of Yukos' total output and a fifth of Russian production - making it a hugely valuable strategic asset.
"Yukos as we know it can never look the same again," said Mr Adam Landes at Moscow's Renaissance Capital bank. "We have reached a point of no return for the company and the Kremlin."
State-dominated gas monopoly Gazprom is many industry experts' favourite to lead the race for Yugansk, along with Russia's fourth-biggest oil producer Surgut, which is believed to be well-regarded by the Kremlin.
Yukos officials and western shareholders are already threatening legal action against the government and whoever ends up finally claiming Yugansk, making it a dicey prospect for potential foreign bidders.
