Source: Russian police arrest execs of Red October steel works

MOSCOW, Apr 7 (PRIME) -- The Russian police have arrested three executives of Red October steel plant in Volgograd on suspicion of embezzlement of more than U.S. $65 million, a source with knowledge of the matter told PRIME on Thursday.

According to the Interior Ministry, officials of the large metals producer signed an agreement for an $80 million loan with a large bank. Replenishment of the working capital was listed as the goal of the borrowing; the company pledged a 100% stake in a facility belonging to the plant.

“The money received with the first tranche, amounting to more than $65 million, was transferred to accounts of several controlled companies and then distributed between the accomplices,” the statement read.

The source said that a criminal case on suspicion of impropriation or embezzlement was started in February.

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