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. Last Updated: 07/27/2016

Court Upholds Yukos Freeze

The Moscow Arbitration Court on Friday upheld a lower court's decision to freeze shares that Yukos, Russia's second-biggest oil producer, used to help it acquire a majority stake in Sibneft, Interfax news service reported.

A 17 percent stake in Yukos and a 57 percent stake in Sibneft have been frozen since February as Sibneft shareholders seek to cancel the share issue.

On March 1, a Moscow court ruled in favor of Cyprus- registered Nimegan Trading and N.P. Gemini Holdings, which sought to cancel the shares, saying Yukos breached securities rules, Interfax said. Yukos appealed the ruling.

Cancellation of the shares may return control of Sibneft to billionaire Roman Abramovich and Millhouse Capital, who sold their 92 percent stake to Yukos in October for $3 billion in cash and 26 percent of Yukos's stock. Nimegan and Gemini are linked to Abramovich.

Yukos shareholders and Abramovich-led Millhouse agreed in February to end Yukos' takeover of Sibneft by reversing the October deal.