Auction of Yukos’ Siberian unit to kick off at $8.65 bn

Russia pressed ahead on Friday with the last step in the destruction of embattled oil major Yukos, saying it will auction its main Siberian unit on December 19 at a starting price of $8.65 billion.

Analysts said the price, at the low end of an independent valuation but above the most pessimistic expectations, would still allow the state to sell more Yukos assets later to recover its $18.5 billion tax debt. They tipped gas monopoly Gazprom as the Front-runner, although foreign firms can also bid. If the auction fails to attract bids for the unit, Yuganskneftegaz, it might be nationalised or auctioned at a lower price, they said.

‘‘Yukos as we know it can never look the same again,’’ said Adan Landes of Renaissance Capital. ‘‘We have reached a point of no return for the firm and the Kremlin’’.

The state selling body, the Russian Federal Property Fund, said it would sell all voting shares in Yugansk, representing 76.79 per cent of its capital, at a starting price of $8.65 billion. Bidders must place a huge returnable deposit of $1.73 billion to participate — seen as a move to prevent Yukos’ current owners from hampering the auction by bidding up the price without intending to buy. — Reuters