Russian tycoon’s fraud trial begins

RUSSIA’S richest man, billionaire Mikhail Khodorkovsky, went on trial in Moscow yesterday in a case that will delve into the murky privatisations that accompanied the dismantling of the Soviet Union.

The former boss of the Yukos oil conglomerate and another major shareholder, Platon Lebedev, sat inside a metal cage in court chatting to each other.

The businessmen face charges of fraud, embezzlement and tax evasion in connection with the 1994 privatisation of a big, state-owned fertiliser plant. Both could face about 10 years in prison if convicted. They deny the charges.

Their company, Yukos, is reeling from its own legal troubles. Facing a €2.7 billion tax claim it says it can’t pay up front, the company has warned it might be driven into bankruptcy.

“I am expecting nothing more than I’ve seen in the past,” Robert Amsterdam, Khodorkovsky’s lawyer, said outside the court. “This is a country that destroys its finest company while its senior members languish in jail illegally.”

President Vladimir Putin has portrayed the investigation into Yukos s as part of Russia’s effort to tackle economic crime.

But the targeting of Khodorkovsky at a time when he was raising his political profile has led many analysts to suggest that the Kremlin wants to destroy a potential challenger.