Russian law enforcement authorities have arrested two senior energy officials—one current and one former deputy energy minister—on suspicion of large-scale fraud, according to sources reported by the Kommersant business daily on Thursday.
The Federal Security Service (FSB) initially detained Anatoly Yanovsky, who had been the deputy energy minister overseeing Russia’s coal industry from 2008 to 2021. Shortly after, current Deputy Energy Minister Sergei Mochalnikov was also arrested, alongside three other individuals, as part of the ongoing investigation into Yanovsky’s alleged crimes.
Mochalnikov was promoted to his role in April 2022 after leading the coal industry department of the Energy Ministry since 2014.
According to reports, both Yanovsky and Mochalnikov face charges of large-scale embezzlement and abuse of power. The charges are expected to be formally filed as soon as Friday, according to Interfax.
The investigation reportedly focuses on several companies that secured billions of rubles in government contracts, including those intended for the closure of an unprofitable mine in the Perm region. Authorities launched the investigation earlier this summer after discovering that some of the contracted work had never been completed.
Yanovsky’s arrest follows the detainment of several coal industry figures last year, who testified against him. According to law enforcement sources, the alleged fraud resulted in direct damages of 500 million rubles ($5.16 million) and indirect damages amounting to 12 billion rubles ($123.84 million).
Mochalnikov, who is said to be cooperating with investigators, may face house arrest rather than pre-trial detention, pending a court decision.
The ongoing probe highlights significant corruption within Russia’s coal industry and raises concerns about oversight in government contracts.