MOSCOW, November 7 - RAPSI. The Moscow City Court has mitigated the sentence of Yuri Privalov, the former head of a Sovcomflot subsidiary, to three years in prison, the court spokesperson told RAPSI. Privalov was earlier sentenced to 4.5 years for stealing more than $67 million.

Privalov's sentence has been reduced by 1.5 years. He will also have to pay a fine of 1 million rubles ($31,500) to the state budget. The court passed the ruling after excluding the charges that he had taken part in a criminal group.

The earlier sentence was handed down on September 17 in the defendant's absence.

Earlier, Privalov had been hospitalized. He was declared guilty of large-scale embezzlement of funds as part of an organized crime group, and of aiding and abetting the participants to the crime.

In addition to his prison sentence, he was fined 1 million rubles ($31,500).

Investigators claimed that Privalov and other members of an organized crime group embezzled funds from Sovcomflot and Novoship subsidiaries between 2000 and 2005.

The Investigative Committee said the funds were misappropriated by overstating the commissions payable to foreign brokerage companies for concluding purchase and sales transactions for Novoship and Sovcomflot ships. After the payments were received, the margin was transferred to the accounts of the companies controlled by the accused.

The total sum embezzled was over $67 million.

As Privalov entered into a plea bargain, his case was considered without the full examination of the evidence or witness interrogations.

Sovcomflot and its subsidiaries were in a legal battle with former Sovcomflot CEO Dmitry Skarga, former Novoship President Tagir Izmailov, and businessman Yuri Nikitin for over five years until 2010. The claims amounted to over $800 million. Sovcomflot won $150 million following the litigation.

With a fleet of over 150 ships, Sovcomflot is Russia's largest fully state owned shipping company.