SUCCESS!!! At last!
I read the disk with the following settings:
Read Speed = Max
Fast Error Skip = ON
Error Correction = Hardware
Read Retries = 0
There were no read errors after sector 10024, unlike with my previous attempts where the were far more read errors. I burned the copy and installed and played it succesfully.
It seems that Hardware Error Correction did the trick. I tried with Error Correction set to "None" and "Software" with 0 read retries during my previous attempts, but never with Hardware Error Correction. It seems that Yuri's Revenge uses a newer/stronger version of SafeDisc2 that requires the use of Hardware Error Control, as I succesfully backed up Red Alert 2 and other SafeDisc 2 games without Hardware Error Control.
My deepest thanks goes to G@M3FR3@K and FutureProof who helped me to solve this problem.