Volgograd Court to Hear Fraud Case Involving Construction Firm

A criminal case for large-scale fraud has been sent to court in Volgograd. The defendant is Alexander Kornaushkin, director of Tambov Construction Company LLC, accused of two episodes of crime in the execution of state contracts.

According to investigation data, in November 2022, contracts were signed between the State Government Institution «Capital Construction Management» (GKU Upravlenie Kapitalnogo Stroitelstva) and Kornaushkin«s company for the major repair of the educational-sports building of the Volgograd Medical College, as well as for the construction of paramedic-midwife points in the Pallasovsky, Uryupinsky, and Chernyshkovsky districts of the region.

Senior Assistant Prosecutor of Volgograd Oblast Oksana Cheredinina explained: «After receiving an advance of more than 74 million rubles (approximately $740,000 at current rates), the defendant in the criminal case disposed of the budget funds at his discretion without performing the work stipulated by the contracts.»

The damage caused to the budget has been fully compensated through bank guarantees. Work on the sites continues by a new contractor. The accused«s property worth over 340,000 rubles (about $3,400 at current rates) has been seized.

The financial indicators of Tambov Construction Company LLC raise questions. For 2022, revenue amounted to 195.7 million rubles (approximately $1.96 million at current rates), net profit — 2.4 million rubles (about $24,000 at current rates). However, by November 2025, the company had accumulated tax debt of 118 million rubles (about $1.18 million at current rates). The company is listed in the register of unscrupulous suppliers, and in December 2025, bankruptcy proceedings were initiated against it.

Alexander Kornaushkin denies his guilt. «There was no crime,» the man assures. «All the money has been returned to the budget. I didn»t even start the work and returned everything. The contract was tendered in August 2022 with a deadline until October. It«s impossible to complete the work within such a timeframe. But the former head of the fund said it was very important to win the contract, and the deadlines would be shifted later. But a new head came, and the contracts were terminated. The money was returned immediately. I have no idea why the criminal case was started. I am currently under a travel restriction order. Interrogations and other investigative actions are being conducted.»

Kornaushkin admitted only to the misuse of funds: «I am guilty of getting involved in this story. But there was no embezzlement here. This money was within the company. It went to finance our other state contracts. But then I still returned all the money. To the fund. This is standard practice.»

The delay in the reconstruction of the medical college led to personnel changes. Governor of Volgograd Oblast Andrey Bocharov dismissed the director of the State Government Institution «Capital Construction Management» Andrey Kozmenko. At the construction site, the governor stated: «There won»t be a third time. Who is our customer? Tell me, how did it happen that we had two contracts with you and each of these contracts was not fulfilled?«

After Kozmenko«s resignation, his first deputy Vladimir Emelyanov was appointed acting head of the management.