CNPC To Sue Yukos Over Suspended Oil Deliveries
China National Petroleum Corporation plans to sue the
floundering Russian oil company Yukos over its failure
to resume oil shipments to China, as it had pledged to
do in October.
Yukos has been in serious trouble ever since its former
CEO was arrested by the Russian government on charges
that it had evaded
taxes. Its accounts are currently frozen by the Russian
government, which claims that it may use its accounts
to move money out of Russia. Although China only gets
about 2% of its daily oil consumption from Yukos, world
oil supplies have become so tight that even the Chinese
premier have had
to intervene with the Russian government, trying to
secure oil deliveries.
The Chinese claim that Yukos suspended deliveries on
Sept. 28, and has not resumed deliveries since, leading
to losses for China National Petroleum Corporation and
its subsidiary PetroChina. ChinaOil, PetroChina's trading
arm, is responsible for business discussions with Yukos.
The Chinese side claims that it is willing to the claim
to international courts for settlement.
Yukos has claimed that it is unable to fulfill current
contracts because it does not have access to its own accounts.
The Chinese have countered, saying that they are willing
to cover freight costs to China.
The monetary amount of the claim is US$1 million, but
if the amount of refined products is figured in, the amount
is considerably larger.
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