Elena Andreeva, the executive director of Interprodukt LLC, is facing charges of large-scale fraud related to the execution of a state defense order. The Military Investigation Department of the Investigative Committee of the Russian Federation announced the charges on June 17.

The investigation indicates that Interprodukt secured a multi-million dollar contract in 2022-2023 to supply food to an educational institution in St. Petersburg. Andreeva was responsible for overseeing the contract’s fulfillment.

Authorities allege that Andreeva inflated the cost of food products during this period, enabling her to embezzle funds on a significant scale. This alleged action led to the non-fulfillment of the contract terms.

The state incurred substantial damages as a result of the alleged crime. Following these accusations, the court has placed Andreeva under house arrest.

According to its website, INTERPRODUCT, a trade and industrial group, was established in 1991 in St. Petersburg as a food product trading company.