Moscow Court Order Yukos to Pay 99 Bln Rubles in Back Taxes

In view of today's ruling of the Moscow Arbitration Court to claim from YUKOS over 99 billion Rubles in taxes, penalties and fines for the year 2000, the Company deems it necessary to announce the following.

The court ruling passed with numerous violations of procedural norms, as well as the decision of the Tax Ministry dated April 14, 2004, are ungrounded and selective.

The court ruling has not come into effect, and the Company will undoubtedly file a complaint against it, since the Company is absolutely confident that it has always paid all taxes in good faith and in accordance with the existing legislation of the Russian Federation.

The Company believes that today, a legal precedent, which is exceptionally dangerous for the entire Russian economy, was created whereby YUKOS was made liable for third parties' taxes.

In YUKOS' opinion, the Tax Ministry's actions and the Arbitration Court's ruling, blatantly infringing legislative norms, including the expired term of levying fines for non-existent tax violations, are aimed at destroying one of the largest and most successful companies in Russia.

These actions prove that the so-called "YUKOS case" is clearly politically motivated, which was acknowledged, in particular, by official representatives of the Parliamentary Assembly of the Council of Europe.

Recognizing its responsibility to the employees, shareholders, partners and clients, YUKOS will make every effort towards fulfillment of all its obligations.