Russia’s defense industry has been rocked by another corruption scandal, with federal security agents detaining a former senior manager at the country’s primary infantry fighting vehicle manufacturer, AO “Kurganmashzavod.”
According to the Federal Security Service (FSB) branch in the Kurgan region, the former head of the plant’s metals department is suspected of abuse of official powers in the execution of a state defense order, resulting in “grave consequences” under Part 2, Article 285.4 of the Russian Criminal Code.
Investigators allege that between 2023 and 2025, the department chief, “in pursuit of personal gain,” directed subordinates to sign contracts exclusively with a specific metal supplier from Yekaterinburg, regardless of price or the availability of alternative manufacturers. Law enforcement authorities estimate that the scheme caused over 29 million rubles ($363.000) in losses to Kurganmashzavod through the purchase of unjustifiably expensive metals.
Kurganmashzavod is a key producer of armored vehicles for the Russian military, including the BMP series, and has played a major role in supplying equipment for Russia’s war in Ukraine. The company has not publicly commented on the arrest.
This latest case comes as Russian courts hand down a separate prison sentence to another high-ranking defense official. Former head of the Central Military District’s armored vehicle service, Major General Denis Putilov, was sentenced to eight and a half years in a strict-regime colony after being found guilty of accepting a large-scale bribe under Part 6, Article 290 of the Criminal Code.
Prosecutors said that in 2023 and 2024, Putilov oversaw the execution of costly contracts for the repair and maintenance of military equipment between a state customer and a private entrepreneur. In exchange for “general patronage,” Putilov received a 10 million ruble ($125.377) bribe.
The investigation determined that the contract terms were never fulfilled, causing “substantial damage” to the state represented by the Russian Ministry of Defense. Criminal proceedings against Putilov began in September 2024.
In addition to the prison term, the court stripped Putilov of his major general rank and banned him from holding administrative and managerial posts in state authorities for six years.
These two cases highlight an ongoing pattern of high-level corruption in Russia’s defense and industrial sectors. Over the past two years, more than a dozen criminal investigations have been opened into officials within the Ministry of Defense and defense enterprises. In several instances, individuals connected to such cases have reportedly died under unclear circumstances.
The growing list of prosecutions comes at a time when Russia is intensifying its defense production to sustain its invasion of Ukraine. Corruption scandals involving the procurement of overpriced materials, unfulfilled defense contracts, and bribery have raised questions over the efficiency and integrity of Russia’s war-time military supply chain.