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Watchdog denies auction winner purchase of Yukos assets

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MOSCOW, May 10 (RIA Novosti) - Russia's federal anti-monopoly service has denied Promregion Holding, the winner of the auction for the Yukos southern assets, to effect the purchase, the press secretary for the Yukos bankruptcy manager said Thursday.

On May 3, Promregion Holding, believed to be affiliated with Russia's largest crude producer LUKoil, won the auction for Yukos assets in the Krasnodar Territory in southern Russia, after it offered 4.9 billion rubles (about $190 million) compared with an initial lot price of 3.17 billion rubles (about $123 million), the auction commission earlier said.

Nikolai Lashkevich said the Yukos bankruptcy manager has received a notice of purchase denial from the anti-monopoly service May 8 and is now studying the situation.

"It is not ruled out that a repeat auction may be held," Lashkevich said.

As a second option, the bidder with the second best offer at the auction could be recognized as the auction winner, Lashkevich said.

Promregion Holding participated in the auction along with Versar and Neft-Aktiv, a subsidiary of state-controlled crude producer Rosneft, the auction commission earlier said.

A LUKoil representative denied reports May 3 that Promregion Holding had any links to the company.

"This company has no links to us," Dmitry Dolgov said in reply to the question regarding the company's affiliation with LUKoil.

Yukos, whose founder Mikhail Khodorkovsky is serving an eight-year prison term in Siberia after being convicted of fraud in May 2005, faces a total of 709 billion rubles (about $27.6 billion) in claims from creditors.

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