Authorities in southwestern Russia’s Kursk region arrested Vladimir Lukin, CEO of the Kursk Region Development Corporation, following allegations of misusing over 173 million rubles ($1.7 million) during the construction of border fortifications along the Russia-Ukraine border. Lukin is accused of authorizing double payments to contractors for work already completed, misappropriating funds meant for defense projects.
Lukin’s arrest follows that of Igor Grabin, the company’s deputy director, who was apprehended last week as part of the same investigation. Grabin faces similar charges, with investigators alleging Lukin’s illegal orders led to the misuse of allocated budget funds.
During a search of Lukin’s property, authorities discovered nearly 2 million rubles ($20,000) in cash and a collection of luxury watches. The controversy surrounding Kursk’s border defense grew after Ukrainian forces launched a surprise incursion in August, which reportedly met minimal resistance.
This issue has gained further attention with the involvement of regional lawmaker Maxim Vasilyev, who has been accused of failures in border defense. Filmmaker Nikita Mikhalkov publicly claimed that Kursk officials embezzled 15 billion rubles ($146 million) allocated for fortifications, further intensifying scrutiny.