The decision will keep the politically ambitious businessman in jail until after the March 14 presidential election. Khodorkovsky has already been in pretrial detention since his Oct. 25 arrest on charges of fraud and tax evasion.

Laqunching a defense for the outspoken businessman has been tough with even his Toronto-based lawyer, Robert Amsterdam, being barred from all but an hour of the two days of hearings. The defence team later said that an appeal would be sent to the European Court of Human Rights if his appeal to be released during the investigation is rejected in Russia.

Prosecutors had argued that if released, the businessman could flee Russia or pressure witnesses.

Shortly after his arrest, Khodorkovsky resigned as chief executive of Yukos, saying he wanted to take the company out of the line of fire. He still remains a top Yukos' top shareholder despite his assets being frozen.