MOSCOW, November 11 - RAPSI. Defense attorneys for former YUKOS co-owner Vladimir Dubov charged with a large-scale theft of budget funds consider the prosecution's position farfetched and the trial against their client unlawful, Dubov's counsel Leonid Saykin told the court at the Thursday hearing.

The court started on Thursday to hear the criminal case against Dubov in absentia. The prosecutor announced the indictment and the defense expressed its attitude to it.

The trial is proceeding behind closed doors because Dubov is on the international wanted list and its extradition was denied.

According to investigators, Dubov's activities caused damage amounting to about 76 billion of non-redenominated rubles ($13 million). The prosecution maintains that the embezzlement was committed by the breach of a trilateral agreement between the Finance Ministry, Yuganskneftegaz (a YUKOS subsidiary) and a regional administration.

Dubov is suspected of embezzling budget funds allocated for housing construction for servicemen.