Courtroom Report: February 16, 2010
Mr. Lakhtin resumed questioning Mr. Yurov, repeating many of the same questions he asked yesterday. Mr. Lakhtin's question about funds leaving YUKOS consolidation perimeter was answered with a reference to payments to suppliers and tax payments.
Early on in the hearing Mr. Lakhtin was issued a second on-the-record warning, for turning the hearing into "a bazaar." Mr. Lakhtin, after asking several questions about a company not even mentioned in the indictment, then threatened to halt the hearing if Mr. Lebedev continued to interrupt. Mr. Lakhtin got into a shouting match with Judge Danilkin, after the latter told him to move on to a new topic and was promptly issued a warning. After the warning was issued, Mr. Lebedev reminded the court that defendants were not accused of embezzling funds.
After taking over, Mr. Lebedev was unsuccessful at finding out whether Mr. Yurov remained "an accused" in any criminal case. In a tactic used by other witnesses, Mr. Yurov declined to answer this line of questions, citing a non-disclosure agreement he signed during interrogation. Mr. Lebedev was puzzled by Mr. Yurov's inability to discuss a non-secret indictment. Meanwhile, Mr. Lakhtin was busy objecting to questions of "personal nature." Mr. Khodorkovsky objected to the actions of the presiding judge, faulting the court for allowing Mr. Yurov to hide behind a piece of paper tendered to investigators and not letting the defense find out about exculpatory circumstances resulting in possible changes of Mr. Yurov's status. According to Mr. Khodorkovsky, an order to terminate a criminal investigation against alleged co-conspirators should be of interest to the court. Mr. Yurov refused to answer whether a criminal investigation against him was terminated.
For the rest of the morning session Mr. Yurov was questioned about circumstances surrounding Bank MENATEP's bankruptcy and Yukos Universal's acquisition of Bank MENATEP collecting rights. Mr. Yurov, after examining some case documents, testified that Yukos Universal wrote off as a loss over $200 million USD as a result of acquisition of Bank MENATEP collecting rights. Mr. Yurov confirmed that it was in YUKOS best interest to purchase at a discount financial instruments representing YUKOS debt. Mr. Yurov mentioned various creditors of Bank MENATEP who were paid in full, as well as moves by Bank MENATEP's shareholders to reimburse all individuals who had accounts with the bank at the time it went bankrupt.
Mr. Yurov testified in detail about DIB and Bank MENATEP SPb. He testified about these banks' clients and various controls to ensure that all paperwork was processed and filed according to banking regulations. Mr. Yurov confirmed that DIB's management, including himself, did not conceal any major issues which could have had negative impact on DIB from the bank's Board and its Chairman, Mr. Lebedev.
In the afternoon, Mr. Yurov testified that he never witnessed any discussions about embezzlement of crude oil and never heard about it from anyone else. Furthermore, Mr. Yurov told the court that the first time he learned about alleged embezzlement of VNK subsidiary shares was from the news media. Mr. Yurov described his relationship with Mr. Lebedev as "friendly" and testified that the latter never ordered him to do anything which would break the law.
Questioned by Mr. Khodorkovsky, Mr. Yurov confirmed that he and his employees saw payment orders issued by YUKOS subsidiaries for utilities, transportation, materials and salaries. Additionally, tax payments were made from the accounts maintained at DIB. Mr. Yurov confirmed that YUKOS production subsidiaries paid their invoices. He did not remember any major litigation concerning unpaid bills. Mr. Yurov testified that the funds came from YUKOS, but did not remember whether YUKOS subsidiaries were profitable or not.
Mr. Lakhtin motioned to read some of Mr. Yurov's interrogation transcripts. His argument, once again, focused on "incomplete" testimony by the witness. Mr. Klyuvgant objected. He pointed to a lack of evidence concerning material contradictions and noted that Mr. Yurov was interrogated with the status of "an accused" and not as a witness. Also, Mr. Klyuvgant argued that a procedural violation was committed by investigator Akimov, who identified Mr. Yurov's transcripts as "material evidence," thus making them inadmissible.
Mr. Lakhtin was allowed to read several of Mr. Yurov's interrogation transcripts. Afterwards Messrs. Khodorkovsky and Lebedev asked follow-up questions. Mr. Yurov testified that the only way for Bank MENATEP's shareholders to increase their influence on the bank's creditors committee was to acquire Bank MENATEP's collecting rights. Furthermore, Mr. Yurov confirmed that one of the reasons YUKOS purchased Bank MENATEP collecting rights was to use them to offset own indebtedness to the bank. He was unable to explain why he did not say that to investigator Rusanova.
Both sides concluded questioning Mr. Yurov.
The trial will resume on Wednesday, February 17, 10:30 Moscow Time.