Russian oil giant Yukos is very close to insolvency, Yukos' CEO Steven Theede was quoted by the Interfax news agency as saying on Wednesday.

The Yukos CEO said the company is in a situation close to insolvency at present. The insolvency, in the classical sense, occurs when unpaid bills are three months overdue.

Yukos' board of directors decided on Tuesday evening to call two extraordinary shareholders' meetings, Interfax reported.

Theede said the first meeting scheduled for Dec. 20 is to discuss the possible implementation of anti-crisis measures, or the liquidation or bankruptcy of the company.

The second meeting, whose date has not yet been set, is to deal with the possible dismissal of the current board of directors.

The register was closed on Nov. 2 and shareholder ballot sheets will be accepted until Dec. 17.

Yukos' 3.4 billion US dollars in back-tax bills for 2000 is the first in a series of tax charges made against the oil company after a year-long investigation into Yukos. The company faces a similar charge for 2001 and is currently being audited for 2002.