MOSCOW, April 25 (RAPSI) – Moscow’s Presnensky District Court has detained ex-director of Vnesheconombank (VEB) regional development department Ilgiz Valitov charged with abuse of office until June 20, the court’s spokesperson Aleksey Chernikov has told RAPSI.

Reportedly, Valitov as a top manager of the bank was responsible for signing a contract with Zarechye-2 construction company. Under the agreement, the firm was obliged to pay over $117 million for building residential facilities. However, Valitov allegedly demanded a contract change resulted in the entering of Valitov’s ZouZout Holding Ltd to the Zarechye-2 co-founder board. The company has brought over 3 million rubles ($48,600) in Zarechye-2 authorized capital and received 15% of its shares. According to Kommersant newspaper, the defendant practically stopped the construction by his actions, and the credit debt of Zarechye-2 was rising. Accordingly, VEB turned to a commercial court.

Zarechye-2 was declared bankrupt, and a court seized the company’s assets. VEB allegedly suffered from a $117-million damage.

Valitov earlier worked as VTB Bank Vice President and was a member of the Board of Directors of KAMAZ Company. From 2007 to 2010, he held a position of Director of the regional development department of the State Corporation "Bank for Development and Foreign Economic Affairs (Vnesheconombank). From 2010 to 2011, he worked as a chief of VEB department of natural resources. He also acted as Chairman of the Board of Directors of VEB Project Management LLC.