US court grants temporary injunction against Yukos auction
Houston: A bankruptcy judge in the US late on Thursday granted Russian oil giant Yukos' request for a temporary injunction to block this weekend's auction in Moscow of its main production subsidiary. US Bankruptcy Judge Letitia Clark also accepted jurisdiction of Yukos' bankruptcy case filed in Houston on Tuesday.

The company had called the filing its last resort to seek an emergency order canceling the auction of Yuganskneftegaz planned for Sunday in Moscow. Yukos now has 10 business days to seek a permanent injunction.

The injunction does not apply to the Russian government, but applies to a consortium of international banks, including Deutsche Bank, which are putting together a multibillion-dollar loan to finance a bid in the auction.

They say the Russian government could go forward with the auction, but the top bidder wouldn't have the financing for the opening US$ 8.6 billion bid if the banks withdraw.

Russian authorities say Yukos owes US$ 27.8 billion in taxes and scheduled the auction to pay part of that bill. Yuganskneftegaz produces about 60 percent of Yukos' oil.
Back to News Review index page  

Bush promises tough budget
Washington, DC: US President George W Bush has said that "now is the time to confront Social Security" to deal with a projected US 3.7 trillion dollar, 75-year shortfall and give younger workers the ability to invest some of their contributions.

Bush also promised to send Congress "a tough budget" early next year to hold the line on federal spending.

In 2018, the system starts paying out more in benefits than it collects in taxes. In 2042, the system will be able to cover 73 percent of promised benefits, according to Social Security's trustees.

Bush is expected to propose details in January, but he won't offer specific legislation.
Back to News Review index page