Yukos shortfall leads to Chinese lawsuit

A report in Interfax indicates China’s China National Petroleum Corp (CNPC) has filed a lawsuit against Russia’s Yukos with an “international court” over the matter of non-delivery of crude to China in September.

Citing an anonymous CNPC official, the report stated, “China has been conducting talks with Yukos for a long time. Initially, Yukos warned us that it might suspend oil exports to China and we told Yukos that we would make use of official channels if this happens.”

“Since oil exports were suspended in September, we’ve held a series of talks with Yukos, which, however, have not produced the expected result and we have therefore filed a lawsuit with an international court as the sole fair means of settling the situation. The company has acted in line accord with the terms of its contract with Yukos,” added the insider.

As reported earlier in EnergyReview.net, the beleaguered Russian firm was forced to freeze its exports to CNPC when it was unable to pay its freight charges due to the fact its bank accounts had been frozen by the Russian tax authorities.