Russian billionaire and drone officials detained in large-scale fraud probe

Russian law enforcement detained billionaire Valery Kustov, who founded and chairs the board of Efko, together with three senior Efko managers. The Ministry of Trade and Industry confirmed the arrest of Alla Polovchenya, deputy head of its unmanned systems and robotics department. Prosecutors allege the detained parties covertly purchased unmanned aerial vehicles from China and falsely claimed them as Efko’s proprietary technology.

Efko, Russia’s top sunflower-oil producer that entered the drone sector in 2021 via its Future Transport unit, expressed solidarity with its employees and urged the public not to speculate. The company operates an R&D centre in the Belgorod region and a production plant in Tolyatti. President Vladimir Putin has highlighted the acceleration of domestic drone production as a strategic priority in the conflict with Ukraine. The arrests underscore heightened scrutiny of defence-related procurement amid the ongoing war.