Yukos files for US bankruptcy protection

Russian oil giant Yukos Wednesday filed for US bankruptcy protection in attempt to stop the forthcoming auction of its major asset Yuganskeneftegaz, according to the Interfax news agency.

The oil company made the filing in the United States Bankruptcy Court for the Southern District of Texas, Houston Division. U.S. Bankruptcy law has worldwide jurisdiction over property of the debtor, the report said.

The company said in a press release that the existing management continues to operate the business and manage its properties as debtor-in-possession.

The Company also asked the Court for an emergency hearing issue a preliminary injunction to halt the planned Dec. 19th auction of Yuganskneftegaz, and to compel the Russian authorities to arbitrate the Company's claims for the billions of dollars in damages.

The statement said that Yukos was forced into reorganization because Russian authorities are proceeding with the sale of Yuganskneftegaz, which accounts for roughly 60 percent of the Company's oil production. If allowed, the sale of Yuganskneftegaz will cause the Company to suffer immediate and irreparable harm.

In addition, Yukos Oil Company's bank accounts and other assets have been frozen by Russian authorities as part an unprecedented campaign of illegal tax claims.

A temporary restraining order, for which the oil company is asking the Court, seeks to prevent the Russian Government, the auction bidders and financiers from participating in the sale process of purchasing, the press release said.

The Russian authorities have pursued an unprecedented campaign against Yukos by asserting tax claims. It is considered to be punishment for former CEO Khodorkovsky's political activities.