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Murmansk region court extends custody of 2 grand theft case suspects

Gennady Shubin, ex-aide to regional governor, and his alleged accomplice, Alexander Khazov, are accused in misuse of funds in the housing and public utility sector

MURMANSK, August 14 (Itar-Tass) - A court in northern Russia's Murmansk region extended custody of Gennady Shubin, former aide to the regional governor, and his alleged accomplice, Alexander Khazov, accused in a criminal case over misuse of funds in the housing and public utility sector, the press service of the regional department of the Investigative Committee /SK/ told Itar-Tass on Wednesday.

"The court extended custody of Shubin and Khazov by two months to October 12. They are accused of misuse of money, fraud and money laundering," the press service said.

Investigators said Shubin, as director general, member of the board of directors, and de-facto owner of the Kolenergosbyt electric utility, had misused over 300 million roubles together with Khazov and other unidentified persons in the period from February 18, 2009 through to December 31, 2012. The money belonged to a number of companies, including TGK-1, MRSK North West, OGK-2, RusHydro, Inter RAO UES and Lukoil-Rostovenergo.

The former aide is also accused of stealing 600 million roubles-worth of shares belonging to the Teplovodosnabzheniye company, and at least 430 million roubles belonging to Russia's Savings Bank.

Shubin was detained on February 14, 2013 as he was trying to fly abroad. He had been granted Swedish citizenship. The interior ministry said he had arranged a vertically integrated company comprising more than 100 organisations. Some of these were registered in offshore zones. Shubin's company controlled 70 percent of the electricity market and at least 60 percent of the housing and utility services market in Murmansk region.

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