ARBITRATION COURT TO RESUME YUKOS BACK TAX SUIT HEARINGS

MOSCOW, December 14 (RIA Novosti) - The Moscow Arbitration Court announced a break till tomorrow, December 15, in considering a Yukos back tax suit. The drowning petroleum company demands to invalidate a resolution of the Federal Taxation Service interregional inspection, on which it has to pay an extra 193.8 billion rubles as fiscal arrears for 2002. Today's Central Bank rate is R28.12/$1.

In today's hearings, the court was considering evidence and questioning the defendant's spokesmen, our correspondent reports from courtroom.

The court today dismissed the plaintiff's challenge of the judge considering the suit. Yukos legal experts suspect his bias after the same judge considered a Federal Taxation Service suit against the company for a 2001 fiscal penalty to make a verdict in the Service's favor. The court vice-president dismissed the challenge despite their reasoning.

The Arbitration Court is considering, on the same case, a Federal Taxation Service suit against Yukos for a 72.04 billion ruble 2002 penalty.

The company is suspected of tax evasion through men-of-straw based in Kalmykia, Mordovia and the Evenki autonomous area-places formerly entitled to soft taxation.