Support The Moscow Times!

Cleaning Supplies Company CEO Accused of Defrauding Russian Military

Alexander Avilov / Moskva News Agency

Russian law enforcement authorities said Thursday that they arrested the head of a cleaning supplies company on suspicion of defrauding the Russian Defense Ministry through government contracts.

Federal investigators accused Lenbytkhim CEO Denis Mikhailov of misappropriating over 20 million rubles ($218,600) from a contract with Voentorg, the military’s clothing and food supplier, which was valued at 115 million rubles ($1.2 million).

“Mikhailov deliberately inflated prices for raw materials,” Russia’s Investigative Committee, which probes major crimes, said in a statement.

Mikhailov was arrested in St. Petersburg and charged with large-scale fraud, a crime that carries a maximum punishment of 10 years in prison.

Last month, Voentorg CEO Vladimir Pavlov was arrested on similar charges of defrauding the government by supplying overpriced toiletry kits to the military.

Investigators said they are looking into potential involvement by Voentorg and the Russian Defense Ministry’s resources department in the case against Lenbytkhim.

Authorities are also probing the legality of Mikhailov and his family’s properties and vehicles in St. Petersburg and Turkey, valued at over 100 million rubles ($1.1 million).

Voentorg’s parent company was sanctioned by the EU in June 2022 following Russia’s full-scale invasion of Ukraine.

Since late April, a number of senior military officials have been arrested on various corruption charges, part of an apparent purge within the military that also saw the dismissal of Sergei Shoigu as Russia’s defense minister.

Sign up for our free weekly newsletter

Our weekly newsletter contains a hand-picked selection of news, features, analysiss and more from The Moscow Times. You will receive it in your mailbox every Friday. Never miss the latest news from Russia. Preview
Subscribers agree to the Privacy Policy

A Message from The Moscow Times:

Dear readers,

We are facing unprecedented challenges. Russia's Prosecutor General's Office has designated The Moscow Times as an "undesirable" organization, criminalizing our work and putting our staff at risk of prosecution. This follows our earlier unjust labeling as a "foreign agent."

These actions are direct attempts to silence independent journalism in Russia. The authorities claim our work "discredits the decisions of the Russian leadership." We see things differently: we strive to provide accurate, unbiased reporting on Russia.

We, the journalists of The Moscow Times, refuse to be silenced. But to continue our work, we need your help.

Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and every contribution makes a significant impact.

By supporting The Moscow Times, you're defending open, independent journalism in the face of repression. Thank you for standing with us.

Once
Monthly
Annual
Continue
paiment methods
Not ready to support today?
Remind me later.

Read more