Khodorkovsky could await trial for two years

Mikhail Khodorkovsky, former head of Russian oil giant YUKOS, could be kept in custody for up to two years as investigators draw up a tax evasion and fraud case against him, a top prosecutor was quoted as saying yesterday.

But the oil firm's new head, Simon Kukes, who took over from Mr Khodorkovsky a week ago, told Reuters the uncertainty around the company should not put off talks with potential foreign stake buyers for long and that they could resume within six months.

The Natural Resources Ministry began examining whether to strip Siberian oilfield licences from a subsidiary of YUKOS, which is the target of what is widely seen as a drive by Kremlin hawks to clip Khodorkovsky's political wings.

A decision to strip the company of its licence could indicate whether a legal assault by prosecutors is directed at the firm or only at its billionaire boss.

Deputy prosecutor Vladimir Kolesnikov said the magnate's stay in custody depended on how long it took investigators to prepare the case.