MOSCOW, September 4 (RAPSI) – The Moscow City Court has upheld house arrest of a theater director Kirill Serebrennikov charged with embezzlement, RAPSI correspondent learnt in the courtroom on Monday.

The court has partially granted an appeal filed by the defendant’s lawyers, allowing Serebrennikov to have two-hour walks each day. However, in other regards the court upheld the ruling of the Basmanny District Court extending house arrest of Serebrennikov until October 19.

On August 22, the theater director was arrested by law enforcement officers. Investigators believe that Serebrennikov organized embezzlement of 68 million rubles ($1.1 million). The defendant denied wrongdoing.

According to investigators, Serebrennikov developed the Platforma project for promotion of art in 2011 and received allocated funds of 214 million rubles (about $3.6 million) from the Ministry of Culture in 2011-2014.

Investigators believe that Serebrennikov created Seventh Studio stage company to actualize the project and invited former head of the company Yury Itin, ex- general producer Alexey Malobrodsky, and former chief accountant Nina Maslyayeva, among others, into organization.

Investigators allege that on request of the theater director Itin, Malobrodsky, and Maslyayeva were falsifying data for the Platforma project’s plans in 2011-2014. This data was provided to the Ministry of Culture as the rationale for financing from the state budget.

Earlier, Maslyayeva, who stands charged with embezzling public funds allocated for promotion of art, has testified against Serebrennikov.

Maslyayeva said that Serebrennikov, Malobrodsky and Itin organized embezzlement of money allocated for the cultural event. Serebrennikov and Malobrodsky cashed the money with the assistance of Maslyayeva. The woman also said that she entered falsified data in financial reports.

On May 23, police raided the Gogol Center as a part of investigation into the case. Searches have also been conducted in Serebrennikov’s place of residence.  Later, he was questioned as a witness in the case.