Russian defense company investigated over embezzlement

PanARMENIAN.Net - Russian Defense Ministry property management company is under investigation for alleged embezzlement of up to $100 million, by selling off properties at below market value, Investigative Committee spokesman Vladimir Markin said on Thursday, Oct 25, RIA Novosti reported.

Managers in the Defense Ministry’s property services holding company Oboronservis also used ministry funds to renovate some of the most lucrative properties, and then illegally sold them or rented them out for commercial purposes. Some of the properties were in Moscow, which has some of Europe’s most expensive real estate.

The investigation has also uncovered instances of real estate and land plots in Russia's Krasnodar Territory being confiscated from state use, rented out, developed and sold for alleged personal gain, the spokesman said.

Five criminal cases have been initiated in connection with the affair, which investigators estimate to have caused total losses of at least 3 billion rubles (almost $100 million).

Defense Minister Anatoly Serdyukov has been informed of the investigation and arrived at one of the locations being searched, law enforcement sources said.