The back-and-forth negotiations over $7 billion in unpaid taxes between theRussian government and Russian oil major OAO Yukos Oil Company is contributingto volatility in global oil markets. While Yukos has sought to appease the governmentwith a repayment plan, the Russian government has been taking steps to seizethe assets of Russia’s second largest oil producer.

The game of brinkmanship is being keenly watched by world oil markets.

Whether the government decides to strike a deal or continue