Trial of Yukos magnate Khodorkovsky resumes

Russian oil magnate Mr Mikhail Khodorkovsky's trial for fraud and tax evasion resumes today amid his oil firm Yukos's battle …

Russian oil magnate Mr Mikhail Khodorkovsky's trial for fraud and tax evasion resumes today amid his oil firm Yukos's battle for survival.

Mr Khodorkovsky and business partner Mr Platon Lebedev are charged with causing damage of $1 billion to the state and face up to 10 years in prison. Analysts believe their troubles and those of Russia's largest oil exporting firm have been orchestrated by the Kremlin to punish Mr Khodorkovsky for political activities.

Following a one-week break, prosecutors will resume reading their way through 400 volumes of case documents. Mr Khodorkovsky's lawyers say it could be several weeks before serious cross-examination can begin.

Yukos must pay $3.4 billion in back taxes by the end of August, something it says it cannot do because it lacks spare cash and is banned from selling assets to raise money.

READ MORE

Many analysts believe the state wants to dismantle Yukos as soon as the deadline expires by selling its key Siberian producing unit, Yugansk, to state energy firms to cover the back tax bill.

Yesterday, business group Menatep, the vehicle of core Yukos owners including Mr Khodorkovsky, declared Yukos in default on a $1.6 billion loan it had provided to Yukos last year.

Analysts said the move meant Yukos's core owners were giving up hope that the oil giant would survive and were trying to recover at least some money before it ends up in state hands.