Yukos 'hit with fresh tax demand'

Yukos says the authorities are seeking its destruction

Russian authorities have hit stricken oil firm Yukos with yet another demand for unpaid back-tax, the Interfax news agency has reported.

It said that the tax ministry now wants an extra 34bn roubles ($1.2bn; £618m) from Yukos' main production unit Yuganskneftegas to cover 2003.

The news comes days before bailiffs auction Yugansk on 19 December to help pay for Yukos' overall $26bn tax bill.

News of the demand sent Yukos' shares down 10% in trading in Moscow.

Tax row

Yukos has said it fears that Yugansk will be sold too cheaply.

Many commentators believe the tax demands are politically orientated, and punishment for the political aspirations of its former chief executive Mikhail Khodorkovsky.

He remains in jail after being arrested in November 2003 on tax evasion and fraud charges.

Yukos and its supporters also claim the Kremlin wants to bring Yukos back under state-control, and predict that state-controlled Gazprom will win the auction for Yugansk.

Russian tax authorities are already seeking $3.8bn in unpaid taxes from Yugansk for 2001 and 2002.