Overview

• The Kursk regional prosecutor’s office filed an arbitration claim to invalidate the memorial construction contract and recover more than 1 billion rubles for the regional budget.
• A criminal case for large-scale tax evasion was opened against an official of LLC Management of Capital Construction under Article 199, Part 2(b) of the Russian Criminal Code.
• Bankruptcy proceedings have been initiated against the contractor, which also has arrears on mandatory payments, according to prosecutors.
• Prosecutors say the deal was awarded to a single supplier without competitive procedures, with the contractor lacking capacity and using affiliated subcontractors to simulate economic turnover.
• Construction of the memorial in Ponyrovsky District remains incomplete, and authorities report an unworked advance of 299 million rubles on the 1 billion ruble contract with the regional capital construction authority.