Russia's richest man to remain in custody

RUSSIA: Russia's richest man, Mr Mikhail Khodorkovsky, was ordered by a Moscow court yesterday to stay in prison for three more…

RUSSIA: Russia's richest man, Mr Mikhail Khodorkovsky, was ordered by a Moscow court yesterday to stay in prison for three more months pending trial on charges of fraud and tax evasion that some see as politically inspired.

His lawyer said the ruling was handed down on the second day of a closed court hearing attended by Mr Khodorkovsky, former chief executive of oil company Yukos, who was arrested in October. Lawyer Ms Karina Moskalenko, who was at the hearing, said her client was not surprised by the court's decision to keep him behind bars.

"He did not expect mercy, leniency or kindness from this hearing. He said he had expected that the letter of the law would be fulfilled. But that did not happen," she told reporters after the hearing.

The oil magnate's legal team said earlier that prosecutors at the closed-door session at Moscow's Basmanny court failed to produce any documentary evidence to justify Mr Khodorkovsky's continued detention.

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Many observers say the legal assault on Yukos - the company's offices have been raided as prosecutors probe it and affiliated companies - was inspired by Kremlin hawks anxious to rein in Khodorkovsky's political ambitions. They expect no decision to release him on bail until after the March 14th presidential election at the earliest. Incumbent Mr Vladimir Putin, easily Russia's most popular politician, is favoured to win.

Senior government officials have told foreign investors that Mr Khodorkovsky was plotting before his arrest to win control of up to one third of the 450-seat State Duma lower house of parliament by paying lawmakers to vote as he wanted.

Mr Khodorkovsky's arrest led to the unravelling of a merger he helped mastermind between Yukos and smaller rival Sibneft to create Russia's largest oil company. Both companies have since agreed to dissolve the union.

A spokesman for a foundation which receives funding from Mr Khodorkovsky condemned yesterday's court ruling. "Genuine rule of law was not applied in relation to Mikhail Khodorkovsky," said the spokesman for the Open Russia Foundation, which promotes democracy in Russia.

"The fact that the court hearing was held in closed session testifies to the fact that the state prosecutor does not have corroborating documents," the spokesman added.

Earlier the court also ruled that Mr Platon Lebedev, a close associate of Mr Khodorkovsky, held since July in connection with the privatisation of a fertiliser firm, could not go free as he could destroy evidence or pressure witnesses.

Prosecutors have said the investigation into alleged crimes by both Mr Khodorkovsky and Mr Lebedev, linked to a chaotic sell-off of state assets in the 1990s, has now been completed.

Mr Khodorkovsky, who faces up to 10 years in prison if convicted, was originally held without bail on grounds that he could hamper the investigation. Prosecutors have said they see no chance of an out-of-court settlement for Mr Khodorkovsky, but it may take his lawyers up to a year or more to study his case before it comes to trial.   - (Reuters)