RUSSIAN OIL GIANT FILES BANKRUPTCY IN HOUSTON

December 15, 2004

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On December 14, 2004, Yukos Oil Company, the parent of Yukos subsidiaries charged with massive unpaid tax debts in Russia, filed a voluntary Chapter 11 bankruptcy petition in the Southern District of Texas in Houston. Yukos is the largest oil and gas production company in Russia, and among the largest oil and gas companies in the world. The debtor’s largest creditor is the country of Russia, which claims billions in tax debts.

A tax sale auctioning the crown jewel asset of Yukos is scheduled to occur in Russia on December 19, 2004. In first day pleadings, the company sought a US bankruptcy court injunction against Russia to stop the tax sale and a funding injunction against the banks that previously announced that they will provide financing to bidders.

The debtor also seeks enforcement of a “worldwide automatic stay.” First day hearings are set for 12/15/2004 in Houston. Bases for bankruptcy court jurisdiction in the US include: (i) the fact that the company’s CFO has a house in Houston, (ii) the fact that representatives of the company have given speeches in Houston, (iii) the fact that the banks that will finance the tax sale have US offices, (iv) the fact that the company intends to list securities on US exchanges and(v) the fact the some of the company’s equity interest holders include US citizens.