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Last Updated: Wednesday, 3 March, 2004, 13:50 GMT
Sibneft stocks hit by tax bill
Sibneft oil refinery
Sibneft denies any wrong-doing
Russian oil firm Sibneft has seen its shares dip by almost 5% in the wake of a $1bn tax demand from the Russian authorities for 2000-2001.

The producer confirmed it received the bill on Tuesday, but says its accounts are all in order.

The move may suggest that authorities are stepping up their investigations into big business.

It will be a blow for the controller of Sibneft - tycoon Roman Abramovich, who owns the UK's Chelsea Football Club.

Underperforming the market, Sibneft shares fell 4.93% to 92.5 roubles in early trading on Wednesday.

Tax 'minimisation'

The demand comes as Sibneft continues to try to end a nearly completed merger with Yukos that went sour last year after the tax ministry made a $3bn tax claim against Yukos.

We want to stress that the (parliament's) Audit Chamber has never found any wrongdoing in our tax bills during multiple checks over the last few years
John Mann
Yukos's head Mikhail Khodorkovsky is in prison facing personal tax evasion and fraud charges.

President Vladimir Putin who faces the polls on 14 March has promised to cut down on economic crime.

Sibneft, as well as Yukos, have both been criticised for the tax "minimisation" tactics that have greatly reduced their bills.

Brunswick UBS analyst Paul Collison has reportedly estimated that in 2003, when the effective corporate tax rate was 24%, Yukos paid 14% while Sibneft paid 12%

But, Sibneft spokesman John Mann said the parliament's audit chamber had never found any wrongdoing in the company's bills "during multiple checks over the last few years".


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