Russian deputy energy minister held as probe into coal mine contracts expands

MOSCOW

Russian authorities on Friday arrested Deputy Energy Minister Sergey Mochalnikov on charges of abusing his power in a large-scale fraud as the investigation into coal mine contract awards expands, according to the Interior Ministry.

The official was arrested as part of a group of four, including a former deputy minister and two deputy directors of a coal industrial department, Interior Ministry spokeswoman Irina Volk said in a statement.

"They are suspected of fraud committed on a particularly large scale. In addition, the current deputy minister is suspected of abuse of his position," she added.

According to investigators, between 2014 and 2023, Energy Ministry officials signed contracts with controlled organizations to liquidate unprofitable and unpromising coal mines.

Nonetheless, the officials signed documents, claiming that the work was completed comprehensively and effectively, including the closure of a mine that was not profitable in the Perm region.

However, authorities launched an investigation in mid-year after discovering that some of the work was never completed.

MOSCOW

"They are suspected of fraud committed on a particularly large scale. In addition, the current deputy minister is suspected of abuse of his position," she added.

According to investigators, between 2014 and 2023, Energy Ministry officials signed contracts with controlled organizations to liquidate unprofitable and unpromising coal mines.

Nonetheless, the officials signed documents, claiming that the work was completed comprehensively and effectively, including the closure of a mine that was not profitable in the Perm region.

However, authorities launched an investigation in mid-year after discovering that some of the work was never completed.