Russia detains billionaire, executives, drone official in fraud case, media reports say

MOSCOW, July 30 - Russian billionaire Valery Kustov, executives of his Efko company and a government official responsible for drone development have all been detained in a major fraud investigation, multiple news outlets reported on Thursday.

Kustov is the founder, controlling shareholder and board chairman of Efko, which is active in drone production as well as being Russia's leading sunflower oil producer.

Three other Efko officials were also detained, according to the reports by Interfax news agency and others.

The trade and industry ministry confirmed the detention of Alla Polovchenya, deputy head of its department of unmanned systems and robotics.

Mash, a news outlet known for its sources in Russian law enforcement, said the Efko officials were suspected of covertly purchasing drones from China and passing them off as the company's own proprietary development.

Efko in a statement expressed support for its detained employees and urged people to refrain from speculation.

The Efko group has been involved with drones since 2021 through a venture called Future Transport that describes itself as "a leader in the development and production of unmanned aerial vehicles in Russia."

It has a research and development centre in the western Belgorod region and a production plant in the city of Tolyatti, according to its website.

Boosting Russia's production of drones has been cited by President Vladimir Putin as a top priority in the war with Ukraine, a conflict that has become increasingly dominated by the use of unmanned aerial vehicles on both sides. REUTERS