Former Yukos CEO Maintains His Innocence

In a dramatic finale to Russia's biggest trial in decades, jailed tycoon Mikhail Khodorkovsky ridiculed the fraud and tax charges against him as "fantasies of a pulp fiction writer" but stopped short of blaming Russian President Vladimir Putin for his imprisonment and the dismantling of his oil empire.

A verdict is expected April 27 in the trial, which has gripped Russia and unsettled foreign investors. Khodorkovsky, who was arrested nearly 18 months ago and has watched the demise of his company Yukos from behind bars, faces up to 10 years in prison if found guilty of fraud, tax evasion and other charges - as is widely expected.

"A year ago the total, planned destruction of Yukos began," Khodorkovsky said in his final statement from a small cage in a Moscow courtroom jammed with journalists, relatives and observers. "It was organized by certain influential individuals with the intention of taking over the most flourishing oil company in Russia."

"There is no documentation or witness statements that would prove I have committed illegal actions," Khodorkovsky said in calm, clear voice. After his 40-minute address, visitors packed into the Meschansky district courtroom for the end of the 10-month trial broke into wild applause.

Yukos, which once pumped a fifth of Russia's crude, saw its biggest unit auctioned late last year to pay part of a disputed $28 billion back tax bill. The unit was eventually acquired by the state-owned oil company Rosneft.

Many observers trace the roots of the criminal case against Khodorkovsky and Yukos' parallel back tax bill to his funding of opposition parties before parliamentary elections in 2003, calling them Kremlin-sanctioned retribution for his growing clout - a charge Putin has repeatedly denied, saying the cases are legitimate probes into a corrupt business empire.

Khodorkovsky laid no blame on Putin himself in his closing speech, saying instead that the president was "openly misled" by bureaucrats as to his "fictitious" political ambitions. He stressed that he was not asking for leniency, but not everyone was convinced.

"Khodorkovsky doesn't want to spend his life in prison, and naturally he is going for a compromise ... but it's unlikely this will help him," said Vyacheslav Nikonov, a Kremlin-connected analyst with the Politika think tank. "It's too late."

Judge Irina Kolesnikova said the court would issue a verdict April 27 - two weeks before Putin, who has faced questions from the United States and other Western governments over the Yukos cases, plays host to dozens of world leaders for May 9 celebrations commemorating the Allied victory over the Nazis.

Prosecutors have called for the maximum sentence - 10 years - for both Khodorkovsky and his business partner, Platon Lebedev. Khodorkovsky's legal team had little hope the court would disagree.

"I've said from the first day that he would be found guilty ... we can only pray for a miracle," the head of Khodorkovsky's U.S. legal team, Robert Amsterdam, said outside the courthouse.

The trial and dismantling of Yukos has shaken investor confidence in Russia, accelerating capital flight and stifling a growing stock market. Yukos estimates that U.S. minority shareholders lost about $6 billion as tax authorities piled on bills that for some years exceeded the company's revenues.

Still, many ordinary Russians welcomed the arrest of Khodorkovsky, one of the tycoons who they believe snapped up the jewels of Soviet industry in back-room deals while the masses struggled to get by.

In court Monday, Khodorkovsky, 41, dressed in a brown suede jacket and blue jeans, described himself as a humble billionaire who created a thriving, transparent company and gave generously to charity.

"I don't own a yacht or mansions ... not even a football club," Khodorkovsky said in clear reference to the Kremlin-loyal tycoon who is now Russia's wealthiest man: Roman Abramovich, owner of the Sibneft oil company and Britain's Chelsea soccer club.

Before his arrest Khodorkovsky was estimated by Forbes magazine to be worth $15 billion. In its latest list, the magazine put his wealth at $2.2 billion.

"He spoke the truth," Khodorkovsky's elderly father, Boris, said outside the courthouse. "He was brought up to love Russia."

(AP via Forbes, 4.11.2005)