MOSCOW, December 29 (RAPSI) – Russia's Investigative Committee has launched a criminal investigation into the embezzlement of $212 million at the Khrunichev State Research and Production Space Center, one of the country's leading space enterprises, Izvestia newspaper reported on Monday, citing a source familiar with the matter.

The former general director of the space center, Vladimir Nesterov, is reportedly among the suspects.

Investigators probe transactions which allowed the space center to gain control over International Launch Services (ILS), a world leader in providing launch services for satellite operators, according to Izvestia.

Lockheed Martin Corp. partnered with Russian space giant Energia and Khrunichev space center to establish joint venture named LKEI in 1993. In 1995, Lockheed Martin and LKEI set up ILS.

Space Transport Inc., registered in the British Virgin Islands, in October 2006 reportedly acquired Lockheed’s 51% stake in ILS for $108 million.

However, in November 2007, Nesterov reportedly notified Russia's space gency, Roscosmos, that the stake was worth $320-$370 million in accordance with a report of Deloitte & Touche CIS. As a result, $320.8 million were transferred to Space Transport Inc. in the spring of 2008.

Investigators suspect Nesterov of embezzling $212 million, according to Izvestia.

In the meantime, a criminal case was opened two years ago against executives of Russian Space Systems who were suspected of contracting with companies for research projects that did not have appropriate facilities or personnel for the job.

The companies involved were the Space Instrument Making research and production association and Synertech.

On May 16, 2013, Moscow police reported that Synertech’s management had stolen at least 85 million rubles ($1.6 million) which had been allocated to them for a GLONASS research project. Synertech is a joint venture of EADS Astrium and Tesat Spacecom with Russian Space Systems.