The Yukos unit, which provides 60% of the firm’s oil, is set to be auctioned off for missing tax payments.

Speaking to reporters the Chinese Embassy to Russia’s Economics Councillor Fan Chunyong said, “We are very interested in taking part in the bidding. But the main question is what policies the Russian government itself takes toward foreign companies in the Yugansk sale.”

It is understood two state-owned firms, Surgutneftegaz and Rosneft, are keen to grab Yuganskneftegaz but word on the street is the Russian government will allow the firm to be sold to any interested foreign buyer.

The beleaguered parent company Yukos has put a US$30 billion price tag on its unit but the State puts the price at US$17 billion.