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. Last Updated: 07/27/2016

Sidanko Unit Goes Bankrupt

Kondpetroleum, a production unit of the country's fifth largest oil company, Sidanko, has been declared bankrupt.

The arbitration court of the town of Nyagan in the Siberian region of Khanty-Mansi on Monday declared Kondpetroleum bankrupt and appointed a special manager, a Sidanko spokesman said Tuesday, adding that Sidanko will contest the ruling.

"By law we still have one month before the court decision comes into effect and we are going to take some legal action before then," he said without giving any details.

It is expected that the special manager will sell Kondpetroleum's assets to cover debts.

Kondpetroleum, an unprofitable company in the remote, autonomous region of Khanty-Mansi, is enough of a thorn in Sidanko's side that the oil giant has recently offered to hand parts of it over to the state.

But Sidanko had not wanted to pursue the bankruptcy option because it still finds some Kondpetroleum oil fields worth keeping.

Sidanko received some good news Tuesday when a spokesman for the Fuel and Energy Ministry announced that the ministry had granted Sidanko the right to export 37,000 tons of crude in December after the company had produced proof it had paid all its taxes to the federal budget.

Sidanko's export quota for the third quarter of this year was 150,000 barrels per day.