On this day, Western banks gave Yukos a hint on default

On this day, Western banks gave Yukos a hint on default

The company Yukos received an alarming notification from the consortium of Western banks regarding a possible default on credit to the amount of $1 billion. The website Prigovor.ru reminds its readers of what happened on April 27, 2004.

On this day 19 years ago, on April 27, 2004, Western creditors gave to understand that they were ready to bankrupt the Oil Company Yukos. The oil company said that, on the eve, it had received a notification from a consortium of Western banks regarding a possible default on the credit to the amount of $1 billion, which had been provided to the oil empire against the guaranties of its export net sales. The receiving of this alarming notification, reported the news outlet “Gazeta”, means that creditors may demand their money back ahead of time which would entail serious problems, down to a bankruptcy of the company.

In the “extraordinary” statement of Yukos on this matter, it was explained that “the Oil Company Yukos is still capable of conducting export trading operation without any limitations, connected with the provided credit, but, at the same time, the banks could exercise their right with regard to bank accounts, the cash cycle on which is in pledge as loan security. To put it simpler, there is no hurdles for Yukos, but if the banks smell a rat, there will be problems with money.


The newspaper “Kommersant” reminded about “the acquiring of a long-term credit to the tune of $1 billion. The Oil Company Yukos announced it at the end of September 2003. Societe Generale became the coordinator and mandated lead arranger. The other mandated organizers of the credit were Citibank N.A., Commerzbank AG, Credit Lyonnais S.A., Deutsche Bank AG, HSDC Bank Plc, ING Bank N.V., KBC Bank N.V., BNB Paribas and UFJ Bank Nederland N.V. The credit was provided in two tranches, for three years and for five years against the guaranties of net sales of its export deliveries”.

“See also the article “On this day, Western banks gave Yukos one billion US dollars but later took it away”).


The Western banks confirmed the fact of sending the notification at the address of Yukos, but refused to give detailed commentaries. The press-service of Yukos found nothing cleverer than starting to shift responsibility on Tax Services. “As the main reason of the notification was mentioned the claims of the Ministry on Taxes and Levies to the Oil Company Yukos from April 14, 2004 on paying taxes, fines and penalties to the amount of 99.38 billion rubles, as well as the ruling of the Moscow Arbitration Court from April 15, setting a veto on estrangement and encumbrance of the company’s assets”, complained the oil company. It turned out that Yukos, that was hiding from its partners “certain shortcomings”, exposed itself publically before the creditors.

(See also the article “On this day Yukos was put on notice of tax machinations”).

An effort from the part of Yukos to explain to the Western bankers the situation by active actions of the Tax Service, obviously, failed, as in 2003, during the adjustment of the credit line, representatives of the “most transparent” oil company operated with their “glossy” corporate reporting, but hid from the consortium of creditors that the Oil Company Yukos on a regular basis were using dirty tax schemes. And these schemes, if exposed, would have serious legal and financial consequences.

(See also the article “On this day, a syndicate of banks revenged itself upon Khodorkovsky for cheat” and the article “On this day, Western creditors refused of dubious contacts with Yukos”).

“In other words, the Western creditors understood that in 2003, while accommodating the cooperation, the “transparent” leadership of Yukos cheated them brazenly. However, the consortium refused to take any harsh actions, but it was distancing gradually from Yukos, not forgetting about its main purpose – to take out the debts. Finally, in March 2006, it’s the Western banks that filed in the Moscow Arbitration Court a claim on bankruptcy of the Oil Company Yukos, which became the final lap on the way to full collapse of the oil empire”, notes the website Prigovor.ru.

(See also the previous article “On this day, the brothers Shimkevich from the company «Tomskheft-VNK» obtained their deserts”. “Juridical service” has turned out to be an affair to the amount of 462 million rubles. Cyprus allows extradition. The website Prigovor.ru reminds its readers of what happened on April 26, 2011 and 2017).

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