People who stole $23m at Vostochny space center jailed for 8 years

People who stole $23m at Vostochny space center jailed for 8 years
Photo: Sergei Mamontov / RIA Novosti

17 people have already been convicted for the Vostochny embezzlement.

Moscow Simonovsky Court sentenced the owner and managers of Volgo-Vyatskaya construction company involved in the theft of 1.3 billion rubles ($23m) while building Vostochny space center to terms ranging from 4.5 to 8 years, RBC reported. The company's owner Sergey Degtyaryov, his daughter and general director Yevgenia Degtyaryova, as well as top managers Alexander Bazankov and Murat Matuev were found guilty of swindling (Art. 159 of the Criminal Code) and money laundering (Art. 174.1 of the Criminal Code).

It was VIP Stroyengineering that attracted Volgo-Vyatskaya construction company as a subcontractor after it won a tender for the construction of roads and social infrastructure near the spaceport. The company used the advance payment they got from the budget to pay off its own debts and conduct illegal credit activities: Degtyaryov gave large loans for interest to other companies. Almost 2 billion rubles ($35.3m) were allocated for the works, of which 1.3 billion ($23m) got stolen. The money was siphoned off from bank accounts and cashed.

The prosecutor's office asked for 7 to 10 years of imprisonment for the accused. The cases about the embezzlement at Vostochny, construction of which began in 2011, were first initiated in 2015 after mass complaints against non-payment of salaries filed by its employees. The Prosecutor General's Office opened a temporary office for the complaints in the town of Uglegorsk right next to the construction site.

By the end of 2017, 13 people got convicted in embezzlement cases, including the former head of Spetsstroy (Russian Federal Special Construction Agency), Maxim Gildman, former Board Chairman of "Pacific bridge-building company", Sergey Yudin, and head of StroySnab-DV, Pavel Kirentsov. Earlier it was reported that Vadim Mitryakov, the former general director of VIP-Stroyengineering, had confessed and was convicted to 4 years in jail using a special procedure.



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