UPDATE 2-Russia seeks 6 extra years in jail for tycoon

* Prosecutors ask judge to jail Khodorkovsky to 2017

* Sentence would be one year less than maximum, defence says

* Trial seen as a test of Kremlin efforts to reform

(Adds quotes, details)

By Conor Humphries

MOSCOW, Oct 22 (BestGrowthStock) – Russian prosecutors on Friday
demanded that jailed former oil tycoon Mikhail Khodorkovsky be
imprisoned for an additional six years if convicted in a
politically charged second trial.

Supporters have cast both trials as part of a Kremlin-driven
campaign of revenge for perceived political, economic and
personal challenges to Vladimir Putin, who was president at the
time of his arrest and retains much power as Prime Minister.

Prosecutors asked for a 14-year prison sentence but said it
should include the eight-year term that Khodorkovsky is serving,
which is due to end in October 2011. Defence lawyers said the
requested sentence was one year short of the maximum allowed.

It would keep the former Yukos oil company chief in prison
into 2017 and likely fuel further criticism of the Kremlin,
which opponents say uses Russia’s courts to impose its will.

“For a person who did not commit any crime this is still too
much,” said Maxim Dbar, a spokesman for Khodorkovsky’s legal
team.

Prosecutors made the request as they wrapped up closing
arguments in the second trial of Khodorkovsky and his partner
Platon Lebedev, which is seen as a test of President Dmitry
Medvedev’s vows to improve Russia’s justice system.

Khodorkovsky, dressed in black and sitting in a bullet-proof
glass cage in the courtroom, listened carefully to prosecutor
Valery Lakhtin’s statement but did not react. His defence
lawyers are due to begin their closing arguments next week.

Once Russia’s richest man, 47-year-old Khodorkovsky has one
year left to serve in the eight-year sentence imposed after a
high-profile fraud and tax evasion trial that tarnished Russia’s
image during Putin’s 2000-2008 presidency.

BACK TAX

In the second trial, which has been grinding on in a drab
Moscow courtroom for more than a year and a half, Khodorkovsky
stands accused of stealing $27 billion worth of oil from Yukos
production subsidiaries in 1998-2003.

Putin has called Khodorkovsky a criminal with blood on his
hands, citing the conviction of a former Yukos security chief on
two murder charges, and has tried to reassure investors worried
about property rights by insisting Yukos is a special case.

Khodorkovsky’s lawyers say a verdict could come before the
end of the year.

The prosecution of Khodorkovsky and other Yukos officers
helped Putin boost state control over the oil industry, a
crucial source of budget funds in the economic boom fed largely
by high world oil prices during Putin’s presidency.

After the tycoon’s October 2003 arrest, Yukos collapsed
under the weight of massive back-tax claims and was sold off,
with its main production subsidiaries ending up in the hands of
state-run Rosneft (ROSN.MM: ).
The prosecution claims Khodorkovsky stole oil by buying it
from the subsidiaries at artificially low prices and selling it
for far higher prices, and laundered a portion of the proceeds.

When first announced, the charges carried a maximum of 22.5
years, but a retroactive change in sentencing rules for economic
crimes introduced by Medvedev earlier this year reduced the
maximum sentence for the charges to 15 years, prosecutors said.

Defence lawyer Vadim Klyuvgant said the law obliged the
judge to count Khodorkovsky’s current eight-year prison term
against any new sentence.

“The judge is obliged to take into account the sentence from
the first trial,” Klyuvgant said by telephone.

“That is what the law says, but there is no law here.”

After the defence makes its arguments, judge Viktor
Danilkin will consider his verdict, possibly for several weeks.
It could also take him days or weeks to read out the verdict.
(Writing by Conor Humphries; Editing by Steve Gutterman and
Ralph Boulton)
([email protected]; +7495-7751242)

UPDATE 2-Russia seeks 6 extra years in jail for tycoon