ST. PETERSBURG, November 12 (RAPSI) - A co-owner of Russian Internet retailer Ulmart Dmitry Kostygin, who stands charged with fraud, has been released from house arrest on a 25-million-ruble bail ($370,000), the United press service of St. Petersburg courts has told RAPSI.

A motion to change a restrictive measure for Kostygin has been filed by investigators, according to the statement.

Earlier, St. Petersburg investigators reclassified credit fraud charges against the businessman as large scale fraud.

According to case papers, Kostygin acting as the Board Chairman of Ulmart provided false information on the company’s financial position to Sberbank for signing a loan agreement. In April, Sberbank transferred 1 billion rubles ($17.3 million at the current exchange rate) to the company’s account. The defendant allegedly managed the money in his discretion.

The businessman had pleaded not guilty, his lawyer Konstantin Dobrynin told RAPSI earlier.

Ulmart group of companies is the largest Russian private Internet holding focusing on e-commerce segment. The company’s distribution network consists of over 400 sales outlets across more than 240 Russian cities and towns.