The Moscow City Court considered legal the freezing of funds of YUKOS' subsidiaries Tomskneft and Yuganskneftegaz. As such, an appeal of lawyers of these companies against the decision of the Basmanny District Court of Moscow dated August 31, 2004 has been rejected. Previously, YUKOS reported that on August 31 the Basmanny District Court of Moscow froze RUR76bn (about USD2.6bn) on main accounts of YUKOS' subsidiaries. According to this statement, due to the freezing the company's subsidiaries cannot make any payments, including salaries, taxes, and current operating expenses.
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