Support The Moscow Times!

Fraud Cost RusHydro $33M, Police Say

Investigators in the Interior Ministry's anti-corruption division uncovered major financial violations at the state-owned hydro-electric power company RusHydro, the Interior Ministry said.

An investigation conducted by the Interior Ministry's department for economic security and counteracting corruption revealed that RusHydro's general contractors concluded fake contracts for repairs of the company's production facilities with the possible goal of embezzling funds, Interfax reported Monday.

RusHydro's general contractor, Gidrostroi, concluded fake contracts to build production facilities at the Zagorskaya hydropower plant in the Moscow region using fly-by-night companies as intermediaries in financial transactions.

The money channeled through such short-lived firms' bank accounts was then cashed out and stolen, police said.

The company incurred damages of about one billion rubles ($33 million), Interfax reported, citing the police's press service.

The investigation into financial violations at RusHydro came promptly after President Vladimir Putin called out the company's CEO, Yevgeny Dod, for suspected financial malpractice by the company last week at a meeting of the presidential commission on Russia's energy sector.

Related articles:

Read more

Independent journalism isn’t dead. You can help keep it alive.

As the only remaining independent, English-language news source reporting from Russia, The Moscow Times plays a critical role in connecting Russia to the world.

Editorial decisions are made entirely by journalists in our newsroom, who adhere to the highest ethical standards. We fearlessly cover issues that are often considered off-limits or taboo in Russia, from domestic violence and LGBT issues to the climate crisis and a secretive nuclear blast that exposed unknowing doctors to radiation.

As we approach the holiday season, please consider making a one-time donation — or better still a recurring donation — to The Moscow Times to help us continue producing vital, high-quality journalism about the world’s largest country.