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Russia Tried to Build a Naval Base. Half a Billion Rubles Were Stolen Instead
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Three Russian defense contractors will stand trial over the alleged embezzlement of approximately 500 million rubles (about $6 million) allocated for the construction of infrastructure supporting Russia’s Caspian Flotilla, according to Russian media Kommersant on June 28.
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Investigators say the alleged scheme delayed work on a strategically important naval facility in Dagestan and caused significant financial losses to the Russian state.
The case is one of several ongoing criminal investigations into alleged corruption involving Russian state defense contracts.
According to Kommersant, the defendants are former Uralvoyenproekt CEO Alexander Katser, company beneficiary Andrey Ansimov, and businessman Maksim Skvortsov. Russian investigators accuse them of abusing their authority while carrying out a state defense contract, an offense punishable by up to 10 years in prison under Russian law.
The investigation centers on a Ministry of Defense project launched in June 2022 to expand the Caspian Flotilla’s basing facilities in Kaspiysk, Dagestan.
The multi-billion-ruble program included the construction of piers, hydraulic engineering structures, and other coastal infrastructure. State-owned Main Directorate of Special Construction (GUSS) acted as the subcontractor and hired Uralvoyenproekt to perform part of the work.
According to Kommersant, investigators allege the defendants used falsified documentation to secure the subcontract. Between September 2022 and November 2023, the company reportedly received around 500 million rubles (about $6 million) in advance payments, which prosecutors say were transferred to two shell companies registered in Dagestan.
Investigators believe only limited work was carried out to create the appearance of contract fulfillment, while most of the funds were diverted through accounts linked to individuals involved in the scheme.
The alleged misuse of funds led GUSS to file civil claims totaling nearly 3.5 billion rubles (about $42 million) against Uralvoyenproekt. The company later attempted to recover 1.5 billion rubles (about $18 million) from the two subcontractors but was unsuccessful. Uralvoyenproekt was declared bankrupt in 2025, while investigators say construction deadlines for the Caspian naval facility were missed.
Kommersant also reported that Katser and Skvortsov are defendants in a separate criminal case involving an alleged organized network accused of misappropriating defense construction funds across 20 Russian regions, including occupied Sevastopol.
Russian investigators claim the group diverted money allocated for military housing, barracks, schools, and other infrastructure projects through shell companies.
Earlier, former Aeroflot CEO Mikhail Poluboyarinov was arrested in Moscow on abuse of power charges linked to his previous work at the state development corporation VEB.RF. The investigation focuses on alleged irregularities connected to a 2016 bank reorganization.
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-5cfa439b4dd219188392792d56e0edd1.jpg "Russian leader Vladimir Putin visits a command post of Battlegroup West as he receives a briefing from senior military officials in Moscow, Russia, on November 20, 2025.")
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