What was once Russia’s biggest oil company, YUKOS has been declared bankrupt by a Moscow commercial court. The ruling came after creditors – including the Russian tax authorities and the state-owned oil company Rosneft – last week voted against a rescue package put forward by YUKOS management.

It is further humiliation for YUKOS’ ex-chief executive Mikhail Khodorkovsky. Once Russia’s richest man, Khodorkovsky is now serving an eight-year prison sentence in Siberia for fraud and tax evasion. He says his trial and the huge tax bills levied against YUKOS were punishment from the Kremlin for his political ambitions. The court has given an administrator one year to sell off the company’s assets. YUKOS said it will appeal against the decision to a higher Russian court.

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