17 June 2004 00:00
Russian tycoons` criminal trial opens
ByLine: Andrew Jack in Moscow
The criminal trial of two of Russia's best-known business tycoons opened on Wednesday in Moscow - only to be
adjourned until next Monday after a request for a delay on health grounds by one of the defendants' lawyers.
Mikhail Khodorkovsky, the former chief executive and largest shareholder in the oil group Yukos, and his business
partner Platon Lebedev, both appeared in the Meshchansky court in Moscow for open hearings that were dominated by
procedural questions.
The three judges agreed to defer substantive hearings until Monday while one of the lawyers recovered from an eye
operation. They agreed to hear a request to release Mr Khodorkovsky on bail the same day.
However, they refused a request to release Mr Lebedev on bail immediately in spite of claims by his lawyers that his
continued detention since his arrest last July was a violation of Russian criminal procedures.
Lawyers for Mr Lebedev, who appeared to have aged during his detention, say their client is suffering from serious
ill health as the result of his imprisonment, which has hindered the preparation of his defence.
He and Mr Khodorkovsky, who controlled the Menatep group, the largest stakeholder in Yukos and other Russian
companies, sat together in a cage during the trial, giving them a rare moment to talk together.
The two men have been kept apart over the past few months and Russian prosecutors have argued for their continued
detention, suggesting that otherwise the case against them might be jeopardised.
Both are accused by prosecutors of fraud and tax evasion totalling $1bn (?622m, GBP546m) and membership of an
"organised group", to which tax inspectors have recently added $700m in personal liability for alleged tax
underpayment at Yukos.
Dozens of journalists gathered outside the small courtroom but only a handful were let in to observe the hearings in
rotation. Mr Khodorkovsky's parents, as well as Vasily Shakhnovsky, one of their partners, were among the others
allowed to attend.
A number of Moscow university students demonstrated outside the court, calling for his release. Vladimir, a chemistry
student, said: "Arresting entrepreneurs such as him damages the Russian economy."
Yukos shares slipped further on Wednesday amid continued uncertainty about the future of the company and
Menatep's stake.
The company faces an appeal on Friday on a $3.4bn additional tax claim for 2000, which could trigger its bankruptcy
if an asset-freezing order is not lifted.
Investors were pessimistic in spite of claims by several Russian politicians and officials over the past few days
that the authorities would ensure that minority shareholders would not suffer if such a process took place.
[FT.com site] |
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