Russia is taking several steps to regain some potential investors in the aftermath of the Khodorkovsky trial and mounting skepticism from the leading countries as to the ability of President Vladimir Putin to prove the world that Russia is a democratic country.

Russia is now targeting new ways of improving investment climate in the country and has already made some business-friendly announcements.

"It is obvious they are trying to mend the damage done by the YUKOS affair and to get better results than in the first year of Putin’s second term," said Christopher Granville, a strategist at UFG in London.

Khodorkovsky’s case appeared to be the key issue in the argument between Russia and the US as the Bush administration says there’s a violation of human rights in Russia and the case of Russia’s once richest man is just another way for Putin to show tycoons who leads the country.

Mikhail Khodorkovsky and his business partner Platon Lebedev are facing imprisonment for fraud and tax evasion in a case that has been delayed several times.

The defense team for Khodorkovsky claims that the case is politically motivated as Russia’s President Vladimir Putin decided to teach businessmen a lesson on how dangerous it is to get mixed in politics in such country as Russia.

Khodorkovsky tried to get closer to political elite by funding some officials in an attempt to resist tax pressure from Vladimir Putin. Both US and EU claimed Russia’s moves were antidemocratic but Putin stressed the case has nothing to do with politics.

Khodorkovsky and Lebedev were arrested in 2003 when Russia’s authorities filed a $28 billion back tax claim against YUKOS, the largest oil producer in Russia. YUKOS key unit Yuganskneftegaz was acquired by OAO Rosneft, Russia’s state-owned oil company, raising questions about the possibility of imposing state control over the biggest oil producers. Rosneft bought Yuganskneftegaz for $9.3 billion in December. Rosneft may now be merged with OAO Gazprom, a Russian state-controlled company that is the world’s biggest natural gas exporter.

The case remains very vocal now as the Council of Europe, the European Union’s human rights arm, said in January the specifics of the case head it to thought that the fairness and impartiality of Russian authorities are very questionable.