Yukos, the Russian oil company, is to meet with bankers next week to discuss a possible Eurobond worth up to $1bn (€846m) to finance its purchase of Sibneft.

Bankers in Moscow said the frontrunners for the bond mandate are UBS Warburg, Citigroup and Morgan Stanley. The three banks could not be reached for comment. Yukos is expected to turn to the syndicated loan market to raise additional funding for the Sibneft deal.