YUKOS stock jumped 40% today, based on rumors that the company will be acquired by Rosneft. There has been general uptick for stocks in the Russian market in the past few days. However, this isn't the reason for YUKOS big "success".
Speculators believe that the stock will be purchased by the state-owned Rosneft, that acquired Yuganskneftegas earlier this year. The corporate meeting between Yuganskneftegas and YUKOS is scheduled for April 18, 2006, and many Russian analysts say that it's too early and too risky to speculate on some future deal that might not happen at all. However, this kind of acquisition makes perfect sense.
The Kremlin is seeking 226 billion rubles (approximately 8 billion dollars) back taxes from YUKOS. The company is in massive debt at the moment, but if Rosneft acquires YUKOS, you can imagine it would be very easy for the Kremlin to forgive the tax debts. After that YUKOS stock could be converted into Rosneft stock, and the "national champion" state-owned company will complete the saga of nationalizing the most successful private business in modern Russian history.
This purchase should not be confused with the purchase of Sibneft by Gazprom. If the government soon finishes the nationalization of YUKOS it started exactly two years ago, in the Sibneft case, as Russia Blog mentioned before, Mr. Abramovich will be cashing out his vast stake in Russia, to reside peacefully in London.
The main fact out of all of these megadeals is that all the decisions are being made by the same people, for their benefit. In a country plagued by poverty and hunger, dozens of billions of dollars are being spent with only one purpose - to satisfy money hungry and power-crazy individuals.
