Konstantin Lyulchev, Chairman of the Board of Directors of PJSC “TGC-14,” and his deputy, Viktor Myasnik, have been detained as part of a criminal investigation into large-scale fraud. The investigation centers on allegations that the executives inflated heat tariffs, causing significant losses to Rostec enterprises.

The investigation suggests that Lyulchev and Myasnik, the main beneficiaries in the company supplying heat to consumers in Zabaykalsky Krai and Buryatia after the acquisition of a controlling stake in TGC-14 by AO “Far Eastern Management Company” (DUK), may face arrest. Investigators are expected to petition the court for their arrests soon.

The alleged fraud resulted in losses of 9 million rubles to two Rostec enterprises. The number of victims and the total amount of damage are expected to increase as the investigation progresses.

TGC-14’s debt securities quotations have significantly decreased following the news of the detentions.

Lyulchev reportedly possessed an ID card for residency in the UAE, purportedly for opening accounts there, while Myasnik allegedly has a residence permit and real estate in Spain.

DUK recorded a net loss of 2.7 billion rubles in 2024, a stark contrast to the 9.65 billion rubles net profit in the previous year.

TGC-14 is a major energy producer and supplier in Zabaykalsky Krai and the Republic of Buryatia, providing thermal energy to over 500,000 residents and approximately 10,000 legal entities. In 2024, TGC-14 reported a net profit of 1.6 billion rubles. The company owns seven thermal power plants and two energy complexes.