Yukos trial calls first witness

Russian state prosecutors have called their first witness in the long-running trial of Mikhail Khodorkovsky, former boss of oil and gas giant Yukos.

Mr Khodorkovsky has been behind bars since October of last year and faces charges of fraud and tax evasion.

First to take the stand in Moscow was Anatoly Pozdnyakov, ex-director of Apatit, a chemicals firm that was auctioned off 10 years ago.

Prosecutors have questioned how the sale was conducted.

They allege that Mr Khodorkovsky did not fulfil the conditions of purchase because he did not invest money that had been promised.

Fact or fiction?

Mr Pozdnyakov said that Mr Khodorkovsky played a positive role in the life of Apatit, according to the Itar-Tass news agency.

He did, however, add that the company received no money at that time.

"I don't think they lied to us," Mr Pozdnyakov was quoted by Agence France Presse as saying.

"They just didn't give us the money."

Defence lawyers are now expected to question the witness.

Tax troubles

While Mr Khodorkovsky has been behind bars, his former company, Yukos, has itself been facing a legal onslaught.

The oil group has been battered by ongoing wrangling over a $3.4bn (£1.9bn) back tax bill for 2000, and has seen its share price tumble.

The Justice Ministry is trying to take control of, and sell, Yukos's key oil production unit Yuganskneftegaz to settle the outstanding bill.

The company could face more tax charges as the Russian government is pursuing it over a similar claim for 2001 and could seek additional payments for 2002 and 2003.

The problems faced by Yukos have stirred a up a wide range of emotions in Russia and are seen by many as resulting from government anger at the political ambitions of Mr Khodorkovsky.

Local press reported on Friday that a number of people were protesting outside of the Moscow courtroom.

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