Konstantin Lyulchev, Chairman of the Board of Directors of PJSC TGC-14, and his deputy, Viktor Myasnik, have been detained as part of a large-scale fraud investigation. The investigation is focused on alleged tariff inflation that caused approximately 10 million rubles in damages, with potential for the damage amount to increase significantly.

The case was initiated by investigators from the Russian Ministry of Internal Affairs for Zabaykalsky Krai, following inspections by the FSB, police, and prosecutor’s office. Lyulchev was apprehended in Chita while attempting to leave the country, while Myasnik was reportedly detained in Moscow.

Lyulchev and Myasnik are suspected of being primary beneficiaries in the company responsible for supplying heat to consumers in Zabaykalsky Krai and Buryatia, following Dalnevostochnaya Upravlyayushaya Kompaniya’s (DUK) acquisition of a controlling stake in TGC-14. DUK initially owned over 90% of TGC-14 shares but now holds 75.64%, according to Kontur.Focus data.

Previously, Lyulchev and Myasnik faced scrutiny regarding the purchase of TGC-14 shares using a bank loan that was subsequently repaid using the company’s funds, allegedly pushing the critical infrastructure facility near bankruptcy.

TGC-14’s Telegram channel released a statement affirming that the company is operating normally and that a board of directors meeting is scheduled.

Evgeny Nikolaev, General Director of DUK JSC, stated that he learned about the detentions from the media and had no prior information.

The news of the detentions has impacted TGC-14’s financial standing, with the company’s debt securities experiencing a significant decrease in value.

TGC-14 borrowed money from DUK in 2022, which DUK had obtained through a short-term loan from PJSC Promsvyazbank in 2021 to acquire a controlling stake in TGC-14.

TGC-14 is a major provider of electric and thermal energy in Zabaykalsky Krai and the Republic of Buryatia, serving over 500,000 residents and around 10,000 legal entities.