Bailiffs search Yukos HQ records
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MOSCOW, Russia (CNN) -- Court bailiffs have begun the process of seizing Yukos assets after the Russian oil giant failed to meet a deadline to pay $3.4 billion in back taxes.
Bailiffs showed up at Yukos headquarters Wednesday night and began searching the register of shareholders, Russia's Justice Ministry said.
The move came ahead of what Yukos said was a midnight deadline to pay its tax bill.
The ministry said it was opening a criminal case after Yukos failed to cooperate with bailiffs. Yukos denied trying to prevent action by the bailiffs.
Shares in Yukos jumped more than 13 percent Wednesday on hopes of a last-minute deal to save the company, after former CEO Mikhail Khodorkovsky -- currently in jail -- offered to surrender his stake in the oil firm.
But 11th hour talks with the government proved fruitless, and the company admitted it would not be able to pay the demand.
Although media reports persist that some behind-the-scenes communication is taking place between Yukos and the government, Khodorkosvky's lawyer, Anton Drel, told CNN there were no "direct or indirect" negotiations between Khodorkovsky or his holding company, Menatep, and the government.
With the tax payment deadline expired, the government can now seize Yukos assets. The company says "assets" means Yukos subsidiary companies. The government can now take cash from Yukos as well as evaluate assets for further sales or auctions.
Yukos has consistently maintained it could be driven into bankruptcy since it has only $1.6 billion in cash which is not sufficient to pay the initial $3.4 billion.
In addition, Yukos is facing charges for another $3.4 billion in back taxes for 2001. The Russian prosecutor general also has indicated new demands could be forthcoming for 2002 and 2003.
Oil analysts, however, say Yukos production is not likely to suffer at this stage, since the company already pre-paid the cost of extracting oil for this year.
Difficulties might arise with its access to government-owned pipelines, however. On July 26, it must pre-pay the cost of access to the Transneft pipelines.
CNN Moscow Bureau Chief Jill Dougherty contributed to this report.
