The Moscow Arbitration Court ruled that Yukos does not have to pay a 6.748 billion ruble fine

Wednesday, August 12, 2020

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On June 29, the Moscow Arbitration Court's decision to charge Yukos 99.4 billion rubles in back taxes for 2000 took effect. The next day, enforcement proceedings began and Yukos was given five days to voluntarily transfer the owed sum. When the company failed to pay the required amount on time, bailiffs began to exert pressure on the company. On July 9, executive bailiff Solovyova ruled that Yukos would be fined 7% of the amount owed. The company found this decision illegal and went to court. According to Yukos lawyers, Yukos could not have paid such a substantial amount within five days. According to Yukos representatives, a penalty can only be incurred if the debtor refuses to pay the sum. Yukos lawyers said that the necessary amount was not available in Yukos accounts. Moreover, all of its property was arrested and, consequently, the company was deprived of the opportunity to pay voluntarily. Bailiffs said that lack of money was not an excuse for failing to adhere to the court's decision. They also argued that Yukos had the opportunity to pledge or sell the company's 25% stake in Sibneft. In response, Yukos lawyers said that the bailiffs had suggested transferring the company's stake in Sibneft. "However, bailiffs arrested the registers of shares of Yukos' main production subsidiaries," the lawyers noted. The court found Yukos lawyers' arguments more convincing. After reports of the court's decision that Yukos would not be fined 7 billion rubles, Yukos shares rose rapidly. Yukos shares rose 15.35% to 131.5 rubles on MICEX, and 19.18% to $4.35 on RTS. Other blue chip stocks fluctuated and Mosenergo shares remain leaders of the decline.

Bookmark The Moscow Arbitration Court ruled that Yukos does not have to pay a 6.748 billion ruble fine