Putin calls $9.3b sale of Yukos unit strictly legal

MOSCOW -- President Vladimir Putin affirmed the legality of the $9.3 billion sale of the crown jewel of the Yukos oil empire to a mysterious company, suggesting the new owners could eventually link up with another Russian energy company or a Chinese conglomerate.

Putin's comments, his first since BaikalFinansGroup snapped up Yukos's Yuganskneftegaz unit in an auction Sunday, appeared to confirm market expectations that the heart of Yukos would wind up in the hands of state-controlled natural gas giant Gazprom. Acquiring Yuganskneftegaz, which pumps about 11 percent of Russia's oil, would make Gazprom an international oil-and-gas titan.

''As far as I understand and am informed the auction was conducted in strict accordance with Russian legislation," Putin said.

He also said the individuals who bought Yuganskneftegaz had a long history in the energy sector.

Analysts said Putin's comments show Gazprom had a role in the auction, reminiscent of the rigged auctions that sold off Russia's industrial jewels in the 1990s. ''This confirms that Gazprom is heavily involved in the bid," said Paul Collison, at the Brunswick UBS brokerage in Moscow.