Khodorkovsky proposes state representative to head Yukos

Acting through his lawyers, former Yukos CEO Mikhail Khodorkovsky, yesterday proposed that a state representative head the company's board of directors, Rossiiskaya Gazeta comments today.

This is not the first attempt by the company to get in touch with the government. In the past three weeks alone, the company has sent 11 letters to various departments, suggesting different options for preventing its bankruptcy. But none has been answered.

A few hours before Mr. Khodorkovsky made his statement, the Yukos top management led by CEO Steven Theede and board chairman Viktor Gerashchenko held a press conference.

Within a couple of minutes of the statement made by Mr. Theede that in the event of sale of Yukos's main subsidiary - Uganskneftegaz - which accounts for 60% of oil output, the company would be forced to file for bankruptcy and would not be able to honor its export contract obligations, Yukos shares tumbled by 12%- from 165 rubles to 146 rubles.

In reply to journalists' questions about the possible acquisition of Uganskneftegaz assets by Rosneft, Gazprom or Surgutneftegaz, Economic Development and Trade Minister Gherman Gref said that this item was not on their agenda. The state, he said, will not take part in buying the Yukos subsidiary either.