Russian Official Arrested in Multi-Billion Drone Fraud Investigation

Russian authorities have arrested a senior Industry Ministry official as part of a major investigation into alleged fraud involving Chinese drones reportedly presented as Russian-made developments.

Photo: commons.wikimedia.org by Елена1998, https://creativecommons.org/licenses/by-sa/4.0/

Handcuffs

Deputy head of the Department for Unmanned Systems and Robotics at Russia's Ministry of Industry and Trade, Alla Polovchenya, has been detained in Moscow. The ministry's press service confirmed that the arrest took place on July 29.

A criminal case has been opened against her under Part 4 of Article 160 of the Russian Criminal Code ("Embezzlement on an Especially Large Scale"). She has been placed in pre-trial detention.

Chinese Drones Allegedly Presented as Russian Developments

According to Russian media reports, Polovchenya, along with two senior executives of the EFKO Group, was arrested as part of an investigation connected with the implementation of the Transport of the Future UAV systems project.

According to the Telegram channel Mash, the suspects allegedly purchased drones in China and presented them as their own Russian-designed products.

Mash reports that, in addition to Polovchenya, the alleged scheme involved Vladislav Romantsev, Director of Strategic Development at EFKO Group, and Ekaterina Kustova, the company's Deputy Director for Development. Preliminary estimates suggest the damage may amount to billions of rubles. Investigative actions were carried out in Russia's Belgorod and Voronezh regions.

EFKO stated that it supports its employees for their contribution to the company's development. The company emphasized that they helped improve production efficiency, contributed to the development of the bioeconomy and innovative projects, and supported Russia's food security.

Executives Also Reportedly Detained

On July 29, reports also emerged about the possible detention of EFKO's senior management.

The reports named Valery Kustov, Chairman of the Board of Directors, and Evgeny Lyashenko, the company's Chief Executive Officer.

According to the reports, Kustov and Lyashenko may have been detained as part of a fraud investigation related to import substitution projects. Law enforcement officers conducted searches at the company's key offices.

Police and special forces reportedly seized documents and examined the use of state subsidies at company facilities in Voronezh, Moscow, Taman, Belgorod, and Tolyatti.

One of Russia's Largest Agribusiness Companies

EFKO is one of Russia's largest producers in the oil and fats industry and ranks among the country's three largest agricultural holdings.

The company owns several well-known consumer brands, including Sloboda and Altero.