A Moscow court threw out an appeal yesterday from the beleaguered energy giant Yukos over the seizure of its main production unit, which bailiffs are threatening to sell to help pay off huge tax arrears that could bankrupt Russia's biggest oil company.

Yukos failed in the attempt to free up its shares in Yuganskneftegaz, which accounts for 60 per cent of the firm's 1.7 million barrels-a-day output, as analysts sought clues regarding a potential buyer for the jewel in Yukos's now-tarnished crown.

Energy ministry officials are due to meet their Chinese counterparts in Beijing today for discussions on the fate of key deliveries of Yukos supplies to oil-hungry northern China, and which may touch upon rumoured plans for a bid for Yuganskneftegaz by a Chinese firm.

Beijing has approached Moscow with its concerns over the handling of the Yukos case, which many people call a Kremlin-inspired attack on company founder Mr Mikhail Khodorkovsky.

Mr Khodorkovsky used his estimated $15 billion (€12.4 billion) fortune to fund opposition political parties and had discussed selling a large stake in Yukos to US oil majors.

President Vladimir Putin, who Mr Khodorkovsky criticised before his arrest on charges of fraud and tax evasion last October, sought to ease international fears of a global oil shortage late on Monday in a telephone conversation with President George W Bush.

"He \ said he recognises that he doesn't need to be causing conditions such that it hurts consuming nations," Mr Bush said after a 16-minute conversation with the former KGB spy. "He's wise about that."

"We've got a lot of countries beginning to use more energy and we haven't done a good job of increasing supply."

Oil prices eased away from record highs in recent days on news that Iraqi supply was improving and as Mr Putin made reassurances to Washington.

"President Putin noted Russian oil companies are increasing production and exports, and will continue to do so," White House spokesman Mr Scott McClellan said.