Corruption Scandal Unfolds in Belgorod: Officials Face $12 Million Fraud Charges Linked to Border Defense Projects

Russian law enforcement has initiated a criminal investigation into an alleged fraud scheme amounting to $12 million related to the construction of border defenses in the Belgorod region, according to a report by the business newspaper Kommersant on Friday, citing unnamed sources familiar with the matter.

The investigation identifies former Deputy Governor of Belgorod, Rustem Zainullin, along with four businessmen and two construction companies as implicated parties. Sources indicate that Zainullin and three of the businessmen have been detained in Moscow on charges of large-scale fraud, while one individual remains at large. Additionally, Alexei Soshnikov, head of the Belgorod region’s construction department, is reportedly acting as a witness in the investigation.

Authorities allege that between 2022 and 2024, Zainullin and Soshnikov awarded 26 contracts valued at over 1.1 billion rubles ($14.6 million) to the two firms. The contracts are suspected to involve kickbacks, the use of shell companies, and the misappropriation of funds.

The federal government had allocated 19.5 billion rubles ($250 million) for border defense initiatives in the Belgorod region, which included constructing anti-tank barriers, trenches, and dugouts, as reported by Kommersant.

Zainullin was reportedly in charge of overseeing these projects, while Soshnikov’s department acted as the general contractor. Sources indicate that Zainullin denies all allegations.

The Prosecutor General’s Office of Russia is seeking around 925 million rubles ($11.9 million) in damages from those implicated in the case.

If the report from Kommersant is validated, Belgorod would become the second border area to face investigations into alleged graft related to the construction of border fortifications.

In the adjacent Kursk region, it has been reported that defensive structures, which were breached during a Ukrainian incursion last August, cost 15 billion rubles ($192 million) to build and took almost three years to complete.