Details have emerged of a criminal fraud case committed against the Ministry of Defence. The case concerns the theft of more than 500 million rubles during the execution of a state contract for the construction of a water pipeline from Rostov-on-Don to Donetsk.
As part of this case, representatives of the Military Construction Company branch for the Southern Military District, as well as contracting organizations, were detained.
According to investigators, VSK artificially increased the cost of completed work and materials used. None of the defendants admits guilt.
In 2022, the Military Construction Company (VSK), acting as the general contractor, signed a contract with OOO NEST for the supply of shut-off valves worth 533 million rubles. NEST, after retaining about 100 million rubles for intermediary services, engaged a subcontractor — OOO "Interarm". The actual cost of purchasing the equipment in China amounted to about 117 million rubles. The remaining funds were distributed among the participants in the scheme.
After the pipeline was installed, technical deficiencies were discovered in the system that prevented normal operation. The damage was assessed at the full contract value — 533 million rubles.
The Don-Donbass water pipeline was launched in 2022 to compensate for the canal from the Seversky Donets blocked by Ukraine. The project was overseen by former Deputy Defence Minister Timur Ivanov. By July 2025, the system supplied water to only about one-third of the territory of the DPR.
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