MOSCOW, November 1 (RIA Novosti) Moscow proposes starting from scratch on Iran's nuclear program/ Dutch court questions legality of Yukos bankruptcy/ Vladimir Putin's friend owns 50% of global oil trade/ Ukraine pays Gazprom at the last moment/ PwC Audit starts risky game
Nezavisimaya Gazeta
Moscow proposes starting from scratch on Iran's nuclear program
Russia still hopes that Tehran will agree to at least suspend uranium enrichment. This would allow the international community to start from scratch on the issue and prevent a possible military operation by the United States.
Russian Foreign Minister Sergei Lavrov put forth Russia's stance during his lightning visit to Iran ahead of talks by world leaders on the issue.
Discussions of Iran's nuclear dossier have reached a dead-end, and there is no diplomatic way out. To prevent the use of force, all parties concerned should start from scratch, putting to bed the United States' arguments, according to a source in the Russian foreign ministry.
Moscow knows that Iran's nuclear program has reached an advanced stage and cannot be stopped to ensure the country's political stability. As long as Iran continues enriching uranium, it will be violating two relevant UN Security Council resolutions.
"Even if the International Atomic Energy Agency (IAEA) says that Iran's nuclear program is peaceful, the international community will be unable to forget about the violations of the Security Council resolutions," said the diplomat. "On the other hand, we cannot disregard the IAEA's conclusions either, because this would discredit the key international agency."
The situation would be different if Iran agreed to suspend uranium enrichment. Russia still hopes that it would do this following Lavrov's blitz visit. This would signify compliance with the Security Council resolutions, allowing the five permanent members of the council - Russia, the United States, China, Britain and France - and Germany to begin talks with Iran.
After that, Tehran would be able to resume work on its nuclear projects with the assistance of the IAEA and in compliance with the provisions of the non-proliferation treaty, of which it is a signatory.
This procedure would formally mean that Iran is not violating the Security Council resolutions and permit the search for new ways to solve the crisis. This is the real meaning of starting from scratch on the issue of Iran's nuclear program.
Kommersant
Dutch court questions legality of Yukos bankruptcy
"The Russian bankruptcy of Yukos does not align with fundamental legal principles as accepted in the Netherlands," the Amsterdam court said in its ruling.
The court also ruled that shareholder decisions relating to Yukos Finance BV in the bankruptcy of Yukos were invalid. The company's new owner, Moscow-based U.S. businessman Stephen Lynch, will have to negotiate the future of the asset with Group Menatep.
The ruling is especially intriguing in view of the upcoming hearing of Yukos's corporate case in the European Court for Human Rights in Strasbourg, which will dispute the legality of tax claims that bankrupted Yukos.
"This is an odious decision, because my powers were recognized during the previous hearing in the Netherlands [in August 2006]," said bankruptcy receiver Eduard Rebgun. "The U.S. Federal District Court in New York and the London Court of International Arbitration also confirmed my powers. I acted in strict compliance with Russian legislation on the basis of which the arbitration court recognized the bankruptcy of Yukos."
Yukos Finance holds the company's foreign assets, including a 49% stake in Slovak pipeline monopoly Transpetrol, and revenue from the sale of a 53.7% stake in the Mazeikiu Nafta refinery in Lithuania worth $1.4 billion, and Intelligent Energy, a London-based fuel cell technology firm.
According to the former employees at Yukos who control Yukos Finance, the company holds funds and assets worth more than $2.7 billion.
Promneftstroi, a former Rosneft subsidiary bought by Lynch, paid $308 million for Yukos Finance after winning the August 15 auction organized by the Federal Property Fund.
Lynch bought Promneftstroi days before the auction.
The Netherlands is the first country in the European Union to rule that Yukos's bankruptcy is invalid.
Article 6 of the European Convention on Human Rights says: "Everyone is entitled to a fair and public hearing within a reasonable time by an independent and impartial tribunal established by law." Yukos used the clause to file a suit against tax persecution and forced bankruptcy.
The date for the hearing has not been set yet, but the court has already demonstrated its mistrust for the Russian courts' decisions on Yukos. On October 25, it ruled that Russia violated the rights of Platon Lebedev, a business partner of former oil tycoon Mikhail Khodorkovsky, by keeping him in pretrial detention even after it expired.
Dmitry Stepanov, a lawyer with Moscow-based law firm Yukov, Khrenov and Partners, said the Dutch court's ruling would not influence the human rights court in Strasbourg.
"The European Court is not bound by the rulings of West European courts," he said. "For example, Yury Shefler's SPI Group, which filed suits on vodka trademarks in Europe, including the Netherlands, was granted several positive decisions, yet the Strasbourg court unanimously ruled in favor of Russia."
Vedomosti
Vladimir Putin's friend owns 50% of global oil trade
Vladimir Putin's friend, Russian businessman Gennady Timchenko, owns 50% of Switzerland's Gunvor, the world's third largest oil trader.
The curtain of secrecy over Gunbor's business has been raised by the company's co-owner, Torbjon Tornquist. He said he had established the company on a parity basis with Timchenko in Geneva in 1997. Some players on the stock market allege that Timchenko controls 25% of Surgutneftegaz. Timchenko has known the president for a long time. Some of his acquaintances told Vedomosti that he had served with Putin in the KGB and practiced judo.
According to Mr Tornquist, it took Gunvor ten years to become the world's third largest oil trader. Last year, the company exported 60 million metric tons of oil and $30 billion worth of petroleum products from Russia; the projected figures for this year are 83 million metric tons and $43 billion, respectively. Only Glencore and Vitol sell more. Glencore's turnover in 2006 was $116.5 billion and Vitol's $113.9 billion, of which $103.3 billion fell on oil trade - Glencore does not disclose its sales structure.
Mr. Tornquist did not give figures on Gunvor's profits. Alexander Temerko, former deputy chairman of Yukos's board dealing, among other things, with oil sales, assesses Gunvor's profits at 5%-7% of turnover, or $1.5-$2.1 billion last year and $2.1-$3 billion this year. He said these are real figures. An employee of an analytical oil agency agrees with him: these figures correspond to market indicators.
For a long time, most Russian oil companies were cooperating with Glencore, but in recent years they have switched to Gunvor, hence a steep rise in the company's turnover, Temerko said.
Mr. Tornquist named Gazprom Neft, Rosneft and TNK-BP as Gunvor's main clients.
"We sell all oil, which is to be exported, to Gazprom Neft Trading registered in Vienna, and it is no concern of ours where it goes after that," said Natalia Vyalkina, a Gazprom Neft spokeswoman. "Gunvor has become the company's largest trader because it offered a very good price, better than BP and Shell," said Alexander Ryazanov, Gazprom Neft's president until November 2006. According to him, the company exports nearly all its oil through Gunvor.
Rosneft and TNK-BP's representatives categorically refused to comment on Mr. Tornquist's words. There were no comments from Surgutneftegaz either. A source close to the company says that the bulk of its oil is exported through Timchenko-controlled structures.
Gazeta.ru
Ukraine pays Gazprom at the last moment
Ukraine has fulfilled its promise and at the last moment paid Gazprom for gas supplies. But experts believe a new energy conflict could flare up before the end of the year. Its settlement will largely depend on the policies of the future Ukrainian prime minister.
In first place the possible differences could be linked with the Ukrainian elections. "The appointment of Yulia Tymoshenko to office in Ukraine does not suit Gazprom," said Dmitry Abzalov, an analyst at the Center of Current Politics. "Tymoshenko has long been planning to change the arrangements under which Russia supplies gas to Ukraine."
According to Abzalov, Tymoshenko is going to replace the intermediary company - joint Gazprom-Ukraine RosUkrEnergo - and most likely they will be replaced by the Itera company, with which Tymoshenko was connected in the past and maintains good relations to this day.
The Russian monopoly is not interested in such a move because the holding's profits will fall considerably.
Natalya Milchakova, head of fundamental analysis at the Otkrytie finance corporation, agrees with the political expert in that future gas relations, including next year's gas price, depend on the winner in the election race.
"Gazprom is facing hard bargaining on prices. The Ukrainian side considers a fair price is $150-$160 per 1,000 cubic meters. Additionally, Ukraine highlights the fact that a transit pipeline to Europe passes through its territory and expects some benefits in this context," Milchakova said. According to her, the sides would have to seek a compromise.
To date the price for Ukraine is $130 per 1,000 cubic meters. In 2008, according to forecasts, it may grow to $180. Gazprom has declined to comment on gas prices.
Kommersant
PwC Audit starts risky game
The case of PricewaterhouseCoopers Audit is now certain to enter all textbooks on arbitration. The company has been the first in Russian practice to refuse to submit documents to the court, pleading Article 51 of the Russian Constitution.
If the company's move is qualified as contempt of court, its top executives could face criminal proceedings.
The invocation of Article 51, which allows citizens not to testify against themselves or close relatives, is, according to legal experts, an unprecedented event in arbitration practice.
"There is no definitive answer as to whether the article applies to legal entities or not," said Yuli Tay, an attorney with the Bartolius law office.
Vadim Vinogradov, a specialist on constitutional law and head of a subdepartment at the Russian Academy of Legal Sciences of the Ministry of Justice, is, however, sure that the article does not apply to companies at all. "Its very wording presupposes its application only to individuals," he said.
The court has not yet responded to the statement by PwC Audit, postponing its meeting until November 28. But legal experts consider the company's behavior to be risky: if the court finds the company's statement unwarranted and votes it as contempt, the consequences could be very serious. The least the company could expect is a fine of up to 100,000 rubles.
"The fine, however, will not free the company from the need to submit documents and can be imposed repeatedly," said Tay.
Vinogradov said that the refusal to furnish the documents "could serve as an additional argument against the company when its case is examined on its merits."
Denis Uzoikin, a lecturer at the law faculty at Moscow State University, is not ruling out the criminal responsibility of the company executives for the deliberate failure to adhere to the court's ruling. The Criminal Code stipulates imprisonment of up to two years in Article 315 "Non-Fulfillment of a Court Sentence, Decision or Other Ruling."
Experts believe the company, which was forced to take this risky step by the unprecedented situation, could be under threat of more serious consequences when complying with the court's request.
"The court has obligated the company to present documents that could serve as a basis for its public prosecution, up to and including confiscation of property and closure," Uzoikin said.
The press service of the Federal Taxation Service said they "consider inadmissible the failure to observe the court ruling, especially by an international public company."
RIA Novosti is not responsible for the content of outside sources.
