Fresh adjournment in Yukos trial

The trial of Mikhail Khodorkovsky, former head of Russian oil giant Yukos, has been adjourned for a second time.
The hearing was put off until 12 July in response to a plea from Mr Khodorkovsky's lawyers.

The trial, originally scheduled to start on 16 June, was first postponed last week to give a defence lawyer time to recover from eye surgery.

Mr Khodorkovsky, facing fraud and tax evasion charges, could be sentenced to 10 years in prison if found guilty.

His arrest last October spread ripples of alarm through Russia's business community.

Tax bill

Analysts say Mr Khodorkovsky, who had funded opposition groups, breached a tacit agreement between Russia's super-rich elite and the Kremlin to keep out of politics in return for avoiding an investigation into their financial affairs.

Mr Khodorkovsky, like many of Russia's wealthy 'oligarchs,' made his fortune in a series of privatisation deals in the early 1990s, shortly after the collapse of the Soviet regime.

The Russian authorities are separately pursuing Yukos for $3.4bn in back taxes, a demand which the company says could force it into bankruptcy.

The case is being closely followed by foreign investors in Russia, who are worried that it may be an attempt by Moscow to re-nationalise an asset which it believes was sold off too cheaply.

Last week, senior Russian officials adopted a more conciliatory tone, saying they had no interest in bankrupting the firm, and suggesting that a deal may be possible.

Earlier on Wednesday, Russian economy minister, German Gref, told the BBC the case against Mr Khodorkovsky had "a certain political element".

Mr Gref said Mr Khodorkovsky's political activities had made him an easy target when he allegedly tried to commit fraud and avoid paying taxes.

HERE