Fraud charge added to sand extraction case in St. Petersburg

Investigative authorities have opened a criminal case for large-scale fraud against the company Cementno-Betonnye Izdelia (CBI) following searches and the detention of its management. The investigation concerns contracts for the disposal of soil generated during the construction of St. Petersburg metro stations.

According to law enforcement, the enterprise entered into contracts with AO Metrostroy Severnoy Stolitsy for the removal of Class V hazardous waste but did not fulfill its obligations. Instead of disposal, construction waste was transported and dumped at the Vorontsovskoye-2 quarry site in the Vyborgsky District of Leningrad Oblast, which was not intended for this purpose.

In total, since August 2023, the parties have concluded nine contracts that provided for the disposal of soil from the construction of metro station tunnels and vestibules. The investigation claims that the company did not carry out the necessary reclamation work, such as leveling the soil, compaction, and backfilling, but invoiced for fully performed services.

Over two years, the CBI management thus received over 381 million rubles (approximately $4.23 million at current rates) from the federal budget. On this basis, the Russian Investigative Committee for Leningrad Oblast opened a criminal case under the article for fraud on an especially large scale.

Earlier, economic police and FSB officers conducted searches at the company«s office in Sertolovo. They detained five people, including a key beneficiary, the general director, and two CBI employees, as well as the general director of OOO Vorontsovskoye. The suspects are accused of abuse of authority and violation of environmental protection rules.

The reception office of Cementno-Betonnye Izdelia declined to comment on the situation.