Russia - Yukos' YNG Goes To BaikalFinansGroup For $9.34.

At an auction in Moscow on Dec. 19 held by the Federal Property Fund, the hitherto unknown company BaikalFinansGroup (BFG) won the 1m b/d oil producing unit of Yukos, YuganskNefteGaz (YNG), as it made the highest bid at 260.75 bn roubles (about $9.34 bn). GazpromNeft bid Rbs 246.8 bn ($8.87 bn), but withdrew after BFG made a higher offer and was declared the winner.

Apparently, BFG is a hastily assembled entity backed by the Kremlin siloviki. But some analysts still speculate that this is a mere front company acting for GazpromNeft or for another group of interests backed by the Kremlin - in either case the BFG deal was done for Russian state interests to get around a US court order. The sale went despite a Houston court order barring Gazprom and GazpromNeft and their foreign bankers from bidding for YNG, pending further proceedings for Yukos' application for US Chapter 11 bankruptcy protection.

The Federal Anti-Monopoly Service on Dec. 17 said it had approved the applications of four bidders to take part in the auction of YNG. A media release from the anti-trust body said it had approved the participation of Baikalfinansgroup, in addition to GazpromNeft, a new

oil producing unit of Gazprom, First Venture Co. and ZAO Interkom. Nothing is known about the structures behind any of the bidders except Gazprom.

Russian authorities had ordered the auction as part of a continuing dispute over $27.5 bn in taxes the Russian government says is owed by Yukos. A US judge late on Dec. 16 issued a temporary restraining order intended to halt the auction.