Multi-Million Fraud at Russian Shipyard

Russian police is investigating a group of suspects, who are believed to be involved in a USD 28.7 million fraud scheme, committed during warship repair at the country’s shipyard Zvezda, according to the RIA Novosti.

Seven criminal cases connected with the Russian shipyard Zvezda have been initiated by the investigators, Deputy Chief of Police in Primorye region, Ilya Shamratov, said.
The fraud had been uncovered in the work on navy ships at Zvezda shipyard, the Head of the Military’s Prosecutor Office said in early November.
Based on a source from the Russian newspaper Kommersant, the fraud involves an excessively high invoice for a k-419 Kuzbass nuclear submarine.
The Zvezda shipyard is a large shipbuilding and engineering complex located in the Bolshoy Kamen owned by United Shipbuilding Corporation. The shipyard was used to decommission Soviet nuclear submarines, with funding and support from the USA and Canada at the end of the Cold War.

Naval Today Staff, February 6, 2014; Image: dcss