Russia court annuls Yukos share issue for Sibneft; Yukos to appeal decision March 6, 2004 Petroleum News On March 1 a Moscow court annulled a share issue used by the embattled Yukos oil company to acquire another rival crude producer,a decision that promises to quicken the two companies ’acrimonious divorce.Later the same day, Yukos told investors in a conference call that it would appeal the ruling. “As soon as we see the decision,we ’ll be appealing,”Yukos Chief Financial Officer Bruce Misamore told investors during a conference call covered by Dow Jones. Lower court decisions are often overturned in Russia,“ and that ’s what we certainly hope will happen ” in this case, he said. The Moscow Arbitration Court Monday found technical violations in a $9 billion share issue that YUKOS used to swap for a 57%stake in Sibneft during the acquisition Two shell companies believed to represent the interests of the original owners of Yukos ’rival Sibneft successfully argued in the Moscow Arbitration Court that Russia ’s Federal Commission of Securities Markets was wrong to register the $9 billion July 2003 share issue that Yukos used to swap for a 57 percent stake in Sibneft during the acquisition. The share issue ’s cancellation would effectively force the two companies ’split, as it shifts a controlling stake in Sibneft, Russia ’s fifth-largest oil producer, back to original owner Millhouse Capital,a company that manages the assets of businessman Roman Abramovich. Last April, Yukos bought 92 percent of Sibneft in a friendly takeover of cash and stock.The deal was closed shortly before then-Yukos Chief Executive Mikhail Khodorkovsky was arrested at gunpoint in October on charges of fraud and tax evasion.He is still awaiting trial. A month after Khodorkovsky ’s arrest, Millhouse halted the two companies’ integration and pushed for a complete reversal of the deal, which gave Millhouse 26 percent of Yukos. Yukos shares plunged 3.3 percent on the news during March 1st morning trading, but recovered losses later in the day.