MOSCOW, November 13 (RAPSI) – Sberbank demands to declare former chief executive of TMK, Victor Grebnev, who is accused of embezzlement during construction of Vostochny Cosmodrome, bankrupt, Kommersant newspaper writes on Friday.

According to Kommersant, Grebnev is a client of the Dalnevostochny Bank (a branch of Sberbank), his debts estimate 792 million rubles ($11.8 mln). It is reported that the debt arose from a contract of guarantee on the loan made by TMK, a company Grebnev was managing from February 2006 to September 2014.

It is noted that the bankruptcy will allow bank to foreclose on private property as well as to challenge the transactions made by Grebnev on his own behalf.

According to investigators, from 2012 to the fall of 2014, Grebnev knowingly signed contracts of guarantee that were unprofitable for TMK, thereby embezzling over 288 million rubles ($4.4 million). He also signed several contracts that caused TMK over 130 million rubles ($2million) in losses.

TMK, a contractor in the Vostochny Cosmodrome project, said it failed to pay 96 million rubles ($1.5 million) in wages to workers because of the alleged embezzlement. Investigators claim that Grebnev used the money to buy yachts and a mansion.

He was released on bail of 1 million rubles ($15,200) in April.

Last February, the Federal Service of Labor and Employment revealed the failure to distribute over 30.5 million rubles ($464,000) to 1,262 TMK employees working at the cosmodrome. Also, in December 2014, the company was ordered to pay over 61 million rubles ($928,200) of the debt to its staff.