Russia's FSB launches crackdown in Chelyabinsk as $3.2 million in federal funds stolen

In Chelyabinsk, officers of the regional Russian FSB detained the director of LLC “Montazhnik,” Denis Krivtsov, on suspicion of fraudulent embezzlement of over 250 million rubles (over $3.21 million) of federal budget funds during the construction of a water disinfection plant in the regional centre. 

A criminal case has been opened under Part 4 of Article 159 of the Russian Criminal Code (fraud), a source told Kommersant-Southern Urals.

The embezzlement scheme was uncovered by regional FSB, Prosecutor’s Office, and Investigative Committee officials while overseeing the implementation of national projects in Chelyabinsk Oblast. According to the investigation, the management of LLC “Montazhnik” and unidentified officials from the Chelyabinsk city administration and the regional government embezzled funds allocated for the construction of an ultraviolet water disinfection station at the city’s water treatment facilities, the source said.

Law enforcement officers are conducting searches at LLC “Montazhnik” and at the homes of the company’s executives. So far, director Denis Krivtsov has been detained. Officials involved in the crime are being identified.

The contract for constructing the UV water disinfection station was signed in 2022 between the Chelyabinsk Capital Construction Department and LLC “Montazhnik.” Its value amounted to nearly 1.3 billion rubles ($16.7 million). The funds were allocated under the “Clean Water” state program, part of the national project “Housing and Urban Environment.” Construction was completed in 2025.

By Khagan Isayev