Russian authorities arrest businessman Okroyan in connection with military aircraft scam

Russian authorities have placed Mkrtich Okroyan, president of the Auri Group of Companies and one of the shareholders of the Balashikha Foundry and Mechanical Plant (BLMZ), under pre-trial arrest in absentia. The arrest comes as part of a criminal investigation into the supply of substandard bearings for the landing gear of Il-76MD-90A military transport aircraft.

According to Moscow-based newspaper Kommersant, BLMZ delivered defective components to the Russian Ministry of Defence, resulting in the failure of five aircraft. The total damage caused is estimated at more than 229 million rubles ($2,8 million).

The 60-year-old Okroyan was arrested in absentia by the Tverskoy Court of Moscow on charges of abuse of authority in executing a state defence contract (Article 201.1 of the Russian Criminal Code). The arrest was issued to facilitate an international search. Investigators say Okroyan’s involvement was uncovered during a probe into his relative Nikogos Okroyan, the 43-year-old director of the engineering centre and chief designer at BLMZ.

The criminal case was opened on June 16, 2025, and Nikogos Okroyan was detained the following day. He has been charged with large-scale fraud (Part 4, Article 159 of the Criminal Code) and was remanded in pre-trial detention by the Tverskoy Court at the request of investigators.

Between 2020 and 2023, Nikogos Okroyan allegedly embezzled more than 229 million rubles ($2,8 million) from the federal budget. These funds had been allocated to BLMZ under a defence contract to produce and supply 64 aircraft wheels to PJSC Il. The use of counterfeit components in the wheels led to the failure and temporary grounding of five Il-76MD-90A aircraft. 

Authorities say this caused “significant harm to the legally protected interests of the state, represented by the Ministry of Defence,” as well as damage to Russia’s defence capability and national security.

Further investigation revealed that all of Nikogos Okroyan’s actions were coordinated with Mkrtich Okroyan. Consequently, the Investigative Committee merged both cases into a single proceeding. The Auri Group includes BLMZ, whose shareholders were Mkrtich Okroyan, his wife, and his son, along with several other enterprises, some of which serve defence purposes and are also owned by Mkrtich Okroyan.

According to the FSB, although most of Okroyan’s business operations were based in Russia, he spent the majority of his time living in the United Kingdom. In 2020, his family acquired a luxury property in Surrey. He permanently relocated abroad after Russian authorities began scrutinising his companies in 2019, including suspicions that one firm had illegally withdrawn nearly 165 million rubles ($2,06 million) from circulation.

Investigations revealed that fraudulent activities and suspicious transactions involving shell companies, including Avangard Art LLC, Sanrivers LLC, Kantina LLC, and Domino LLC, were carried out under the full knowledge and control of Auri Group management.

Tax authorities also reported that nearly 100 million rubles ($1,25 million), purportedly spent on supplier goods, were actually used to construct luxury country homes in the Moscow region for Mkrtich Okroyan and his relatives.

By Tamilla Hasanova