Yukos welcomes European Court decision
Posted: 20 December 2004
Second independent review of tax claims outside Russia
Yukos Oil Company is encouraged by last week's decision of the European Court of Human Rights to ask for legal explanations from the Russian authorities on six substantive points arising from the Company's application to the Court in April 2004. The Court's decision is an initial but important step toward a final ruling on the validity of the Russian authorities' tax claims against the Company.
Yukos contends that the tax claims against it are arbitrary, disproportionate and invalid, breaching the European Convention on Human Rights (ECHR) ratified by the Russian Federation in May 1998. It also challenges the Russian authorities' respect of the rule of law and procedural fairness. The Court granted the case priority in July of this year.
The timing of the Court's action is significant , coming just days before the auction of Yukos' principal subsidiary, Yuganskneftegas, supposedly to enforce the very liabilities that the Court will have to test. The auction did proceed on Sunday, 20 December 2004.
This case is the first international legal review of the lawfulness of the Russian tax assessments and their enforcement. The European Court decided to put the questions to the Russian authorities on 14 December, just before the Company filed its bankruptcy plea in Houston, Texas, seeking protection from the sale of Yuganskneftegas.
While the European Court's consideration may take as long as three years, the vindication of Yukos' claims would require full restitution, including the repayment of tax, interest and fines.
For further information se www.yukos.com
Posted by Richard Price,
Editor EnergyME.com
Information supplied by companies
or PR agencies who are responsible for content. Send press releases
to richard@energyme.com |
