Shares in the embattled Russian oil giant Yukos soared Monday in the wake of a court ruling that the confiscation of a major subsidiary by bailiffs had been illegal. Yukos shares went up by 12 per cent in early trading at the RTS Interfax indec, reaching 4.20 U.S. dollar at 2.45 p.m. local time (1045 GMT). In a ruling after the stock exchange closure on Friday, the arbitration court had decided that bailiffs were not authorized to seize Yuganskneftegaz, Yukos leading oil-producing unit, in order to reclaim back taxes of about 2.8 billion euros. Observers said Monday the court ruling brought a temporary reprieve to the oil company. However, Yukos' business account remained frozen on Monday despite warnings by the troubled company that it will go bankrupt within a month as funds were transport and on-going operating costs were not available. A second court decision was expected Monday on the confiscation of two further Yukos production units, Tomzkneft and Samaraneftegas.
