Look see, it’s Yuksi

CONSOLIDATION is the order of the day in the Russian oil industry. The government is pleased: it says it wants to see more home-grown, world-class firms. No less a figure than the prime minister, Viktor Chernomyrdin, turned up at a signing ceremony on January 19th to bless the proposed merger of Yukos and Sibneft, respectively Russia's second-and fifth-ranking oil producers, into a new national top-dog. The merged firm will be called “Yuksi”, unless good taste intervenes. It will control 22% of all Russian oil production and 21% of refining capacity. Lukoil, the next-biggest, controls 20% of production and 8% of refining capacity. But, there was talk this week that Lukoil might merge with Sidanco, the country's sixth-biggest producer. If so, that would create a colossus with 26% of Russian production.