Show Jt A8 IV(M11) rib(1tw 2(01 S T1 CHINA GETrING'BATTERED' Russia begins seizing oil giant's assets b By PETER B‘KER AND SUSAN B GLASSER PirlI rots 14llI rots Government to bt moved Wednesday agents in seizing assets of Yukos Oil Co in a climntic confrontation that could carve up Russia's largest oil producer and has raised doubts among investors about doing business here Court marshals raided a share registry office at the end of the business (lay to search for nersh I p doctmients as Yukos tailed to meet a deadline to pay the first half of nearly $7 billion in back taxes The raid was the first step to ixard confiscating assets for the state or selling them off to sat isfy the tax claim In moving so decisively on the deadline day the government was in effect issuing a public reefforts by the jection of cionpany's chief shareholder Khodorkovsky to trade his stake in Yukos for the firm's survival Khodorkovsky part of the MOSCOW — court-ordere- last-ditc- young generation that first plunged int() private enterprise in the late Soviet years and who later became Russia's richest man made his proposal to surrender his shares from the prison where for more than eight months Ile has awaited trial on fraud and tax evasion charges "Ile always had the position that he would (I() everything to avoid bankruptcy of the Khodorkovsky's lawyer Anton Drel said after meeting with his client behind bars The government's actions sent tremors through an investor community already uncertain akiut Russia's commitment It) private property rights and the rule of law under President Vladimir Put in The legal campaign against Yukos is widely for seen as Kremlin retribut Khodorkovsky's political activities It drew rebukes Wednesday from the US State Department 11ich expressed concern over "an appearance of lack of due process" and from the Paris-baseOrganization for Ecoand nomic Cooperation " tom-Pally- taxes penalties and interest for 200() a bill upheld by a Moscow court List week On Monday the government sent a nearly identical bill for Nil and Russia's chief suggested prosecutor Tuesday that further demands for 2002 and 2003 would follow The government may find it hard to untangle Yukos complicated ownership structure in order to seize assets As a holding company according to executives Yukos itself owns few physical assets but controls sub siillaries that own the refineries and installations pumping Coming up with an inventory and figuring out which assets to take over could take weeks or months analysts said Development which called it an example of Russia's "highly selective law enforcement" The situation jeopardizes a company that pumps more oil than Libya and accounts for one fifth of Russia's oil exports For now the company's 100($X) workers remain on the job producing 17 million barrels a day and executives have said they can continue shipping crude through the third week ofJuly The government's tax case against Yukos stemmed from a decision to reopen old audits and apply a more restrictive interlaw to the pretation of the Under returns company's new audits the state assessed the company $31 billion in back Back taxes owed: The country's richest man offers his shares to keep Yukos afloat but the offer is rejected The 13th South West Side of : A 7 T i I r ' :iits s 7 I 7' ' 7 ''4 i cm - Ie 1 1 - t ''t - 1' '"Plio "- -I - p ' - - -- ' - - 7C- - : 44 4 t--- i'mos i woman weeps outside her house which was destroyed by a mudslide In Jianshul China on Wednesday Heavy rains have continued since a mudslide hit the area June 30 The mudslides flooding and lightning that have accompanied torrential rains have killed at least 37 people In China over the past several days A FORTIÉR GEMOLOGISTS JEWELERS VISIT SALT LAKES LEADING JEWELER clifirry 1UIIMI Ax TAG Heuer TACORI THE GATEWAY el r ISO INCE So Rio GRANDE 11 363-530- 0 1"t1 ng)11 8C5 - - tI D ' ' 0 : I 7 11111 - US warning: Khartoum G TALIIC ARM I aRiNart has clays to stop attacking refugee camps in Darfur 1 ' ''''''' 4 UNITED NATIONS The United States issued a challenge to Sudan on dnesday saying it must Immediately end attacks on refugee camps in the Darfur region and tough-worde- ) d give relief organizations access to its starving inhabitants or face UN action "We're talking about days we're talking about this week" said John Danforth the new US ambassador On his first day in the Security Council Danforth who aides said distrusted the Khartoum government from his service as President Bush's special envoy to Sudan expressed skepticism fiver pledges to end the violence that has killed up to 30000 people displaced 12 million and forced more than 120000 into reltigtT camps in neighboring l ) V' 6- k - Va 'YtiA' i - 1 If - qtt -- - 7 1 - I each La r t t 0 !titait 4 L 9 ) zik uml 801 -- - : 8 r 87 - - with your Frequent Foto Card i - Value! 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