Konstantin Lyulchev, Chairman of the Board of Directors of TGC-14 PJSC, has been detained as part of a criminal investigation into large-scale fraud, and has declared a hunger strike, claiming the incident is a hostile takeover. Lyulchev was apprehended in Chita while allegedly attempting to leave Russia.

The investigation focuses on allegations that managers of TGC-14 and shareholders of the Far Eastern Management Company (DUC), which owns it, inflated heat tariffs for two years, resulting in losses for two Rostec enterprises.

Viktor Myasnik, also implicated in the case, was detained in Moscow and is expected to be transferred to Transbaikalia for investigative proceedings. The criminal case was initiated following inspections by the Economic Security Service of the FSB, units of economic security and anti-corruption of the Ministry of Internal Affairs, and the prosecutor’s office.

The investigation suggests that the overstated tariffs led to approximately 9 million rubles in damages initially, but authorities anticipate the total amount of damages may increase significantly.

Prior to his detention, Lyulchev, along with Myasnik, had faced scrutiny in a previous criminal case related to the acquisition of TGC-14 shares through a bank loan repaid using the company’s funds, allegedly pushing the company to near bankruptcy.

Evgeny Nikolaev has headed DUC since January 2025, replacing Viktor Myasnik, who was the owner and head of Far Eastern UK. In 2024, DUC recorded a net loss of 2.7 billion rubles, a significant shift from the 9.65 billion rubles net profit reported the previous year.

TGC-14, a major energy producer and supplier in the Trans-Baikal Territory and the Republic of Buryatia, provides thermal energy to over 500,000 residents and around 10,000 legal entities.