Yukos Sub 1.6 bn Guarantee Illegal

The Moscow Arbitration Court ruled that an agreement making Yuganskneftegaz guarantor of a $1.6 billion loan to Yukos was illegal, Interfax reported from the courtroom.

State-controlled Rosneft bought Yugansk in December 2004, after the government seized and sold the unit of Yukos to recover tax claims.

Yukos is struggling to pay more than $30 billion back taxes and fines.