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By Andrew Osborn and Mark Trevelyan
MOSCOW (Reuters) -Russia's espionage trial of Wall Street Journal reporter Evan Gershkovich moved quickly through witness testimony behind closed doors on Thursday and will now proceed to lawyers' closing arguments in a case his employer called a sham.
The unusually rapid pace of the trial - Thursday's hearing was unexpectedly brought forward by over a month and the witness testimony stage typically takes much longer to hear - is likely to stoke speculation that a long-discussed U.S.-Russia prisoner exchange deal involving Gershkovich may be in the offing.
Russia usually concludes legal proceedings before making any such exchange.
Gershkovich, a 32-year-old American who denies any wrongdoing and says the allegations against him are false, went on trial last month in the city of Yekaterinburg, where he faces charges that carry a sentence of up to 20 years in prison.
Prosecutors allege that Gershkovich gathered secret information on the orders of the U.S. Central Intelligence Agency about a company that manufactures tanks for Russia's war in Ukraine. He is the first U.S. journalist arrested on spying charges in Russia since the Cold War.
Officers of the FSB security service arrested him on March 29, 2023, at a steakhouse in Yekaterinburg, 900 miles (1,400 km) east of Moscow. He has since been held in Moscow's Lefortovo prison.
Gershkovich, his newspaper and the U.S. government all reject the allegations and say he was merely doing his job as a reporter accredited by the Foreign Ministry to work in Russia.
His employer said on Thursday he had been unjustly arrested 477 days ago.
"Even as Russia orchestrates its shameful sham trial, we continue to do everything we can to push for Evan's immediate release," the Journal said in a statement.
The U.S. embassy said: "Regardless of what Russian authorities claim, Evan is a journalist. He did not commit any illegal actions. Russian authorities have been unable to provide evidence that he committed a crime or justification for Evan's continued detention."
State Department deputy spokesperson Vedant Patel told reporters Washington was watching his trial closely but that the embassy was unable to attend on Thursday due to short notice and other logistical issues.
Patel declined to speak publicly about negotiations on a prisoner exchange, but said Washington was seeking the release of Gershkovich and another jailed American, former U.S. Marine Paul Whelan, as soon as possible.
"The timeline of the trial and what route that takes does not have a bearing and has no impact on the urgency that the United States has ... We want both of them home immediately and we'll continue to work in this area until they're reunited with their loved ones," he said.
The court said earlier this week that Gershkovich's trial would resume on Thursday instead of Aug. 13 - at the request of Gershkovich's defence lawyers.
Thursday's hearing, only the second one in the trial, was closed to the press and the court has said that the next time the media will have access to Gershkovich will be when the verdict is announced.
Evgeniy Smirnov, a lawyer with experience of such cases but who is not involved in this one, told Reuters the verdict could come as early as next week.
Closed trials are standard in Russia for espionage cases involving classified material.
WITNESS TESTIMONY
The court said on Thursday it was unable to provide any detailed information on proceedings, but said the day had been devoted to hearing witness testimony.
Local Russian news outlet Vechernie Vedomosti published a photo of a local pro-Kremlin lawmaker, Vyacheslav Vegner, outside the courtroom flanked by two court bailiffs and said he had taken the witness stand.
The URA.ru news outlet said Vegner had declined to provide details of his courtroom role, citing the need for secrecy around the case.
Vegner, who is a lawmaker for the ruling United Russia party in the regional parliament, told the 66.RU outlet after Gershkovich's arrest in March 2023 that he had been interviewed by the reporter and that the two had drunk a bottle of cognac together.
He said then that Gershkovich had asked him about public support at a time when Russia was at war with Ukraine, something Moscow calls a special military operation, the activities of the Wagner mercenary group, and how the Sverdlovsk region's industrial enterprises were being repurposed.
The trial is due to continue on Friday when the court's press service said the respective lawyers in the case would present their closing arguments. Patel said U.S. diplomats would attempt to gain access.
"The two sides have finished presenting their evidence - witnesses, expert assessments, the questioning of experts, the reading out of written evidence," said Smirnov.
"Now the two sides will present their cases in the debates, the prosecutor will request a sentence, Evan will deliver a final statement and the judgment will be delivered."
Commenting on what he said was the unusual speed for such a case, Smirnov said "there may be a defined goal. I hope this is a green light for an exchange".
The Kremlin says the case and the trial arrangements are a matter for the court, but has stated - without publishing evidence - that Gershkovich was caught spying "red-handed".
Russian Foreign Minister Sergei Lavrov said on Wednesday that Moscow had what he called "irrefutable evidence" that Gershkovich had been involved in espionage. He did not say what that evidence was.
U.S. officials have repeatedly accused Russia of using Gershkovich and Whelan as bargaining chips for a possible prisoner exchange.
Washington considers both men "wrongfully detained" and says it is committed to bringing them home.
President Vladimir Putin has said Russia is open to a prisoner exchange involving Gershkovich and that contacts with the United States have taken place but must remain secret.
(Reporting by Andrew Osborn in Moscow and Mark Trevelyan in London; Additional reporting by Daphne Psaledakis in Washington; Editing by Daniel Wallis)