Yukos boss cools on sale to Exxon

Mr Kukes is steering clear of confrontation with the Kremlin

Simon Kukes, newly appointed chief executive of Russian oil giant Yukos, has confirmed that his predecessor held merger talks with US major Exxon.

But Mr Kukes sought to distance himself from Mikhail Khodorkovsky, the former Yukos boss now facing fraud charges.

"I don't think we will go and jump immediately into any strategic partnership with a US major right away," Mr Kukes told the BBC.

Yukos shares have fallen by up to 20% since Mr Khodorkovsky's arrest.

Shareholder value

Mr Kukes, who was appointed last week, insisted that Mr Khodorkovsky's imprisonment would not have an impact on Yukos, despite the fact that the former chief executive is also the single largest shareholder.

"Mr Khodorkovsky has gone. He is not associated with Yukos as a manager," Mr Kukes said.

"If a shareholder has a problem then it's his problem with the government."

Mr Khodorkovsky may wait two years in jail before his trial

The prosecution of Mr Khodorkovsky, one of Russia's richest men, is widely seen as a political vendetta waged by the Kremlin against a powerful rival.

But management at Yukos, Russia's largest oil company, are now keen to steer the company away from politics.

Mr Kukes described the Khodorkovsky case as "a matter for the courts", apparently falling into line with the official Kremlin view.

Yukos shares plummeted on news of Mr Khodorkovsky's arrest in October, and again when it emerged the state would be freezing a 40% stake in Yukos.

But Mr Kukes insists management have not ruled out any strategic partnerships or mergers with international investors once the market has recovered.

"We welcome any discussions," he said.

Talks with potential international partners could resume within six months, Reuters reported Mr Kukes saying in an interview.

Other powerful Russian businessmen who accumulated their wealth in shady privatisations in the 1990s alongside the former Yukos chief have kept silent for fear of themselves being targeted in anti-corruption investigations.

Long process

Russian prosecutors have said Mr Khodorkovsky could stay in jail for up to two years before the case comes to trial.

Two other major Yukos shareholders are facing criminal charges.

Defence lawyers have roundly condemned the treatment of Mr Khodorkovsky, accusing authorities of constitutional infringements and human rights abuses.

A court earlier this week denied bail for the duration of what could be prolonged investigations.

These include an ongoing enquiry by Russia's natural resource ministry into licences held by Yukos to develop oil reserves in Siberia.

But Mr Kukes insists the company will emerge from the shadow of its troubled former chief executive "within two to three months".

According to Mr Kukes, Yukos will raise production to 3.5bn barrels per day by 2009, overtaking rivals such as UK major BP.

Hear the full interview with Simon Kukes on BBC News 24's Business Today programme at 22:30 GMT.