Officials believe that only a large deposit can provide guarantees against the auction going awry. "We want people who want to purchase Yuganskneftegaz at the auction, and not people who want to derail the sale," says a Justice Ministry source familiar with the documents on Yugansk submitted by bailiffs to the Russian Federal Property Fund (RFFI). "Otherwise some bidders may push the price too high and then refuse to buy, disrupting the auction." The official noted that the deposit would not be returned in this case, and "no one will risk losing $800 million."
The RFFI failed to name any specific example of an auction being scuttled by the winner refusing to pay, but said such things did happen. "So, a high up-front sum is a good idea to protect the state's interests," said a fund spokesman.
Zenit Bank analyst Sergei Suverov notes that the structures most interested in wrecking the auction are from Group Menatep, which as Yukos' core owner does not want to lose its main asset.
Steven Dashevsky, from the Aton investment company, noted that the $800 million deposit meant that only major Russian and Western companies could take part in the auction. However, none has yet acknowledged an interest in the asset.
