GAZPROM was left looking for €10 billion (£7 billion) last night after a group of Western banks pulled their backing for the Russian gas monopoly’s planned bid for the main production assets of Yukos.

Banking sources said that the syndicate of six banks, which includes Deutsche Bank, Dresdner Kleinwort Wasserstein and ABN Amro, would not finance Gazprom after a US court in Houston intervened to try to stop the auction of Yuganskneftegaz.

A banking source said: “The money line has stopped. All the banks will adhere to the ruling out of Houston.” This leaves Gazprom to try to raise funds from Russian banks or from the Russian Government itself.

Russia insisted yesterday that it would go ahead with a sale of Yuganskneftegaz, despite the court’s temporary restraining order which was issued late on Thursday.

A spokesman for the Russian Federal Property Fund said: “We are selling Yugansk by order of a bailiff and so far we haven’t received any order to cancel the auction. We are still planning to continue.”

The banks’ decision is a significant blow for Gazprom, which was considered to be in pole position to buy the Yukos assets. Gazprom said yesterday that it still intended to bid and had paid a deposit of 49.3 billion roubles to participate in the auction.

The gas group addded that it had also been vetted by the Russian anti-monopoly service.

However, Thursday’s injunction could still cause serious problems for Gazprom, even if it manages to come up with the money in time to participate in the auction. The company, one of Russia’s largest, has plans to develop businesses in the US which could be spoilt by a US court ruling.

Observers said yesterday that if Gazprom did not find sufficient funds and pulled out of the auction or turned out to be the only bidder, the auction would fail. That would give the Russian Government the opportunity to sell Yuganskneftegaz directly to Gazprom, probably for a lower price.

Yukos said that it welcomed the US court’s ruling, but was realistic about its immediate effect. In a statement, the company said: “We will continue to pursue all potential legal remedies in the United States and other international courts to protect the interests of Yukos shareholders, employees, and other stakeholders.

“We realise the fight will continue. But we are ready.”

Three other companies apart from Gazprom are believed to have registered for the auction so far. Two of them have been linked by Russian reports directly to Gazprom.

Times Recommends

• Minister in talks with Saudis to protect creditors
• Premier Inn hits back in £29-a-room row
• Bankers hit back at 'populist' bonus supertax