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Investigators insist on arrest of Rosnanotech ex-head accused of public funds embezzlement

Criminal proceedings were initiated over unfair tender process and the conclusion of an unprofitable agreement for the state corporation on rendering service with the tender’s winner

Former head of the Russian Nanotechnology Corporation (Rosnanotech) Leonid Melamed ITAR-TASS/Valeriy Matytsin

Former head of the Russian Nanotechnology Corporation (Rosnanotech) Leonid Melamed

© ITAR-TASS/Valeriy Matytsin

MOSCOW, July 3. /TASS/. Investigators consider former head of the Russian Nanotechnology Corporation (Rosnanotech) Leonid Melamed to be the organizer in the case of embezzlement of $5.3 million.

A pre-trial measure against the defendant is to be chosen later on Friday. The Basmanny district court of Moscow has received a petition from the Investigative Committee requesting to choose custody as a pre-trial measure for Melamed who is suspected of organizing large-scale embezzlement, the court’s press service said.

"Due to the fact that Melamed was detained in the afternoon on July 1, the investigators must take a decision on choosing a pre-trial measure for him today, as the 48-hour deadline expires," a source familiar with the situation told TASS.

Criminal proceedings were initiated in September 2013 over unfair tender process and the conclusion of an unprofitable agreement for the state corporation on rendering service with the tender’s winner , the Alemar Investment Group (co-owned by Melamed). As a result, the state corporation (named Rusnano since March 2011) sustained losses worth about $5.3 million.

The company said though that no damage had been inflicted on it because of the actions of its former head.

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