MOSCOW, March 5 (RIA Novosti) - The Moscow City Court ruled that it is lawful to provide hospital treatment for ex-Yukos executive Vasily Aleksanyan while under guard.

The court therefore rejected an appeal by Aleksanyan's defense that the Yukos former vice-president be allowed to have medical treatment without prison guards in attendance.

Aleksanyan, 36, diagnosed with AIDS and cancer, is accused of embezzling about $330 million from former Yukos production unit Tomskneft and shares worth $493 million from other oil companies, as well as laundering stolen assets.

The prosecution earlier insisted Aleksanyan undergo medical treatment in jail. However, a Moscow court suspended Aleksanyan's trial due to his deteriorating health.

Jailed ex-Yukos CEO Khodorkovsky, the founder of what was once Russia's largest oil producer, declared a hunger strike on January 30 demanding medical treatment for Aleksanyan. He called off his protest some two weeks later when Aleksanyan was admitted to hospital.

Aleksanyan earlier claimed the reluctance by Russian authorities to provide him with medical treatment was due to his refusal to assist prosecutors with new charges against Khodorkovsky.

Yukos collapsed after claims of tax evasion in 2004 which led to the company being broken up and sold off to meet creditor claims. The bulk of its assets were bought through liquidation auctions by government-controlled oil company Rosneft. Yukos was officially dissolved in 2007.