The Russian government on Thursday announced the auction of its $1.7bn stake in Lukoil

The Russian government on Thursday announced the auction of its $1.7bn stake in Lukoil and separately met executives from ConocoPhillips, which is in talks about expanding its relationship with the Russian oil company. The US oil group is considering a deal that would see it buy not only the government stake but also expand its joint venture there and possibly buy shares owned by Lukoil's management. The news emerged last night after Yukos, Russia's biggest oil company, warned that it could be bankrupt within a month if the ministry of justice sells its main production subsidiary and keeps a freeze on other assets. It is unclear as yet whether any deal would lift Conoco above the 25 per cent ownership threshold, which is sought by many oil companies investing in Russia because it gives them the ability to block unfavourable decisions by the company. Russian government ministers yesterday met to approve the sale of the state property fund's 7.6 per cent holding in Lukoil. An auction for the stake is expected to take place later this year. In an environment in which government support for corporate deals in seen as crucial, Vladimir Putin, the Russian president, yesterday met James Mulva, chief executive of Conoco. Mr Putin said that he knew about Conoco's "plans to invest" in Russia and wished the company success.