MoD Sues VSK for Defense Order Funds; Arrests Highlight Procurement Scrutiny (Russia, 2024)

The total volume of requests to recover funds from the Military Construction Company (VSK) under the Russian Ministry of Defense (MoD) from January through July 2024 surpassed 9 billion rubles, a figure that is twentyfold higher than the previous year, which stood at 441.3 billion rubles. This increase is reported by TASS, citing materials from the Moscow Arbitration Court and official court filings.

Data for July show that the MoD filed 27 lawsuits with a combined value of 554.4 million rubles. The Ministry seeks penalties tied to government contracts, reimbursement for overstated work costs, or repayment of debts. Initially, the total of claims was estimated at 8.48 billion rubles, underscoring a sharp acceleration in activity during the year.

In total, the MoD’s requests to recover funds from the VSK from January to July 2024 reached 9.03 billion rubles. The MoD consistently brings cases before the Moscow Arbitration Court to recover various sums from the VSK, but this year the number of filings rose markedly. The peak months were May and June, with May recording 17 claims totaling 1.1 billion rubles and June accounting for 23 claims totaling 6.8 billion rubles, highlighting a sustained push to address financial adjustments tied to defense procurement.

On July 25, the Moscow Tverskoy Court ordered the arrest of Andrei Belkov, the General Director of the Military Construction Company, on charges related to abuse of official authority in the execution of state defense orders. The case reflects ongoing scrutiny of contract management and the integrity of procurement processes within key defense-sector entities.

Earlier, the president of Voentorg was detained on accusations connected to misappropriation of funds during the implementation of government contracts. The unfolding developments illustrate a broader trend of intensified oversight and legal action surrounding state defense orders and the management of affiliated companies.

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