MOSCOW, March 20 (RAPSI) – The Moscow City Court has extended house arrest of ex-State Duma lawmaker Vadim Varshavsky charged with embezzling 2.5 billion rubles (about $40 million) from Petrocommerce bank for three months, the court’s press service has told RAPSI.

The former MP will therefore stay under house arrest until June 21.

According to investigators, Varshavsky has developed schemes of embezzlement from the bank along with several other accomplices. Thus, a company controlled by the defendant signed a loan agreement with Petrocommerce in 2008 but made default in its obligations. Damage allegedly caused by Varshavsky is estimated at 2.5 billion rubles.

Varshavsky was an owner of two other manufacturing plants Rostov Electrometallurgical Plant and Donbiotech engaged in grain processing. Rostov Electrometallurgical Plant was declared bankrupt in 2017.

Moreover, Guryev Steel Works, the oldest plant in Siberia founded in 1816, was a part of Estar group of iron and steel companies owned by Varshavsky. In November 2016, the plant was declared bankrupt.