YUKOS: COURT DISMISSES CHALLENGE

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MOSCOW, August 25 (RIA Novosti) - The court dismissed Yukos lawyers' challenge to competence of the bench on costs to be collected from the company, which amount to 6.748 billion roubles, roughly US$220 million, our correspondent reports from the courtroom.

The defence has bad doubts of bench objectivity, experts said on an earlier occasion.

Today's hearings saw three Yukos appeals turned down-challenge of the court president, and requests to dismiss the case, and cancel the consideration of the defendant's appeal due to arbitration procedural norms badly trespassed.

Spokesmen of the Tax Ministry and bailiffs argued all appeals.

As we earlier reported, the costs were levied on the petroleum mammoth on its 99.4 billion roubles (roughly $3.4 billion) back taxes for 2000. The Yukos appealed to the Moscow Arbitration Court against cost payment. The court qualified bailiff action as illegal in a verdict of August 2, after which the Tax Ministry as execution creditor turned to the Court of Appeal.

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