MOSCOW, November 21 - RAPSI. The Moscow City Court has upheld the arrest of Yekaterina Smetanova, a major suspect in the Oboronservis case, the court told the Russian Legal Information Agency (RAPSI/ on Wednesday.

The court has dismissed the appeal submitted by Smetanova's attorneys, who disputed the Khamovnischesky District Court's ruling dated November 1.

The Khamovnichesky District Court also ordered the arrest of her husband Maxim Zakutaylo, the former general director of an air force warehouse in the Moscow district.
According to the rulings, Smetanova and Zakutaylo must remain in custody until December 10.

While considering Smetanova's arrest, a law enforcement officer said during the hearing that the investigators have reason to believe Smetanova will flee the country in a Defense Ministry plane should she be released.

The officer said in a previous incident of a similar nature Smetanova claimed to be an employee of the Defense Ministry's Property Relations Department, and left for Paris from the Chkalovsky airport on a ministry plane with former department head Yevgenia Vasilyeva.

The investigator added that the employees of the Expert Center of Legal Support, which she earlier headed, earlier assisted her in destroying documents in the case. According to the case materials, Smetanova is suspected of committing five crimes.

It was announced in October that five fraud cases had been initiated on the sale of property, land and shares belonging to Oboronservis. Its losses exceeded 3 billion rubles ($95.5 million).

Investigators searched the department and the offices of affiliated bodies, seized documents and questioned employees. In addition, 3 million rubles ($95,500), jewelry and antiques were confiscated from Vasilyeva.

Oboronservis comprises service companies involved in armaments and military vehicle repair and maintenance, construction materials and food production, power facilities operation, cartography and printing goods production, as well as housing services for military towns.