Yukos hit by £1.4bn loss

YUKOS has reported a net loss of £1.45 billion for the first half of 2004, a period of record oil prices, prompting speculation that the Russian oil firm is on the verge of declaring bank-ruptcy.

Yukos, worth nearly £19.1bn a year ago, has been ordered by the Russian courts to pay a £1.86bn bill in back taxes and penalties immediately, which the company claims it is unable to pay because a court order prevents it from selling any of its assets.