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Court quashes decision to charge Yuganskneftegaz $504 mln

The Moscow Arbitration Court on Friday overturned a decision to order Yuganskneftegaz to pay 13 billion rubles ($500 million) to a Luxembourg-based company linked to the former management of bankrupt oil company Yukos.

The court accepted claims filed by state-controlled Russian crude producer Rosneft, the current owner of Yuganskneftegaz, which was formerly the core production unit of Yukos. It was earlier reported that both companies had signed an agreement granting Yuganskneftegaz a loan of 11.2 billion rubles ($430 million). But in 2006 Yukos Capital S.a.r.l. applied to the international commercial arbitrage at Russia's industry and commerce chamber, claiming Yuganskneftegaz had failed to honor its loan commitments and pay interest. In September 2006 the arbitrage court ordered Yuganskneftegaz to pay the principal, plus 1.7 billion rubles ($65.9 million) of interest and $850,000 in arbitration fees to the creditor. The Rosneft management deemed the ruling to be illegitimate and challenged it in the Moscow Arbitration Court. (