Russia Discloses $182-Million in Corruption in Space Industry Company

Eight cases were launched after exposing embezzlement and abuse of office in one of Russia's leading space industry companies.

MOSCOW (Sputnik) – The Khrunichev State Research and Production Space Center, one of Russia’s leading companies in the space industry, has been exposed by the country’s investigators of mismanaging and embezzling around $182 million in 2014, Russian Deputy Prime Minister Dmitry Rogozin said Tuesday.

“An investigative group from the Russian Investigative Committee has launched eight criminal cases, where facts of embezzlement and abuse of office were exposed that led to economic damage to the company at an amount exceeding 9 billion rubles,” Rogozin, who oversees the country’s space industry, said during a parliament session dedicated to Russia’s space agency Roscosmos.

The Khrunichev State Research and Production Space Center produces spacecraft and space-launch systems, including the Proton and Angara rockets.

The company's history traces back to 1916 when it was established as an automobile factory. In early 1920s it started producing aircraft and aircraft engines and in 1959 switched to rocket technologies. The Khrunichev Center created all the Soviet space stations including Salyut, Almaz and Mir.

On Monday, RIA Novosti reported that the Moscow Commercial Court registered a 1.8-billion rubles (some $36 million) claim by the Russian Defense Ministry against the Khrunichev Center. A preliminary hearing is scheduled to take place on July 27. The grounds for the claim have not been disclosed.