Alexander Beletsky, ex-CEO of the Development Corporation and former deputy envoy of the plenipotentiary, was detained in Moscow.
The main investigative department of the capital’s police demanded an explanation from the former head of the Development Corporation and the failed CEO of International Distributive Grid Company (IDGC) of Urals, Alexander Beletsky. Mister Beletsky is connected to three criminal cases, one of which is being investigated in Moscow and has prevented him from leaving the country.
The reason for Beletsky’s unpleasant meeting with the siloviki (Russian politicians hailing from security or military services) was the series of financial extortion on a construction site, which has become a tragedy for the Yamal project.
Why was the interrogation postponed for a year and what questions is the lead investigator interested in?
Alexander Beletsky’s arrest
November 2014, at the Moscow airport and during the passport control for his departure to the Czech Republic, the former deputy presidential plenipotentiary representative and ex-CEO of the Development Corporation, Alexander Beletsky was detained. According to sources, investigators from the Russian Ministry of Internal Affairs could not locate Beletsky’s whereabouts for more than a year. During this time, Alexander Beletsky was reportedly moving around Russia and spending a lot of time abroad. The ministry’s goal in tracking him down was to summon him for questioning with relation to the Yamal project.
Uncovering Beletsky’s fradulent activity
Alexander Beletsky’s testimony is part of the framework for a large criminal case in connection with a number of financial frauds related to the projects of the Development Corporation, of which he was head. Alexander Beletsky has not worked in the Russian federation since 2013, but law enforcement agencies had only recently been able to check on his fraudulent financial operations that occurred during his leadership of the Development Corporation.
According to unofficial information, an audit on the Corporation was initiated by the personal order of President Vladimir Putin, who instructed Vladimir Kolokoltsov, Minister of the Interior, to uncover the misuse of regional budgets tied to the corporation’s project in Yamal. The police received a hefty stack of documents with the president’s personal wish that they “check everything and report.”
The findings were given to the siloviki after information was uncovered to the tune of serious fraud by the Development Corporation formerly under the direction of Alexander Beletsky. However, there was no immediate appeal to law enforcement agencies to detain Beletsky.
Development Corporation’s criminal activity
After a sanction from the capital, three criminal cases were opened based on the obviously fraudulent work of the Development Corporation. Two of the cases were tried against Dmitry Petukhov. A few days after the Petukhov investigation became public knowledge, Alexander Beletsky, who was waiting to be appointed as general director of IDGC of Urals, immediately withdrew his candidacy.
Dmitry Petukhov is formerly the director of the Construction Development Company. According to an inside source, he is now under house arrest. Petukhov is suspected of causing damage to the TFR (Part 2 of Article 201 of the Criminal Code of the Russian Federation). His dubious activities are connected with closing a questionable deal to lease construction equipment with the Moscow-based company, OOO EuroLeasingGroup, and the extorted costs and fraudulent payment for design work from the JSC Institute for “research, design and exploration of energy transport systems, aka, “Energotransproekt”.
When Petukhov signed the contract for JSC, the institute had not yet performed any work. Rather, the institute acted as an intermediary and recruited subcontractors like LLC Giprodornii, paying them approximately 770 million rubles. Another subcontractor, OOO Workshop No. 17, was also paid 440 million rubles without having physically worked for Petukhov either.
Alexander Beletsky’s involvement
But why did Beletsky withdraw himself from as a candidate to direct IDGC of Urals upon hearing this information? Sources claim that negotiations on the terms and cost of the contract with the institute were conducted by Alexander Beletsky himself, along with, Sergei Shindyalov, who gave instructions on concluding and executing the contract for his long-time friend, Petukhov.
The Kremlin’s audit of Beletsky’s Development Corporation showed that the company’s megaproject—the construction of TPP “Polar”—was inflating prices for construction materials and equipment by 181%. Equally inflated were the costs of construction and installation, increased by a factor of 200. The overall theft, which happened under Beletsky’s direction, exceeds 10 billion rubles.