Russia

Senior Russian Trade Official Overseeing Drone Production Arrested for Fraud

The Moscow Times · 2026-07-30

AI SUMMARY

• What happened: Alla Polovchenya, a senior official in Russia's Industry and Trade Ministry overseeing drone development, was arrested for large-scale embezzlement and placed in pre-trial detention. • Why it matters: The case highlights ongoing issues of corruption within Russia's defense procurement initiatives, particularly in the rapidly evolving drone sector, which is crucial for both civilian and military applications. • What to watch next: The developments in Polovchenya's trial and the broader implications for the drone industry in Russia, as well as potential further arrests related to the investigation into Transportation of the Future and its executives.

July 30, 2026 Alla Polovchenya. Arthur Novosiltsev / Moskva News Agency A senior Russian Industry and Trade Ministry official overseeing drone development has been arrested and placed in pre-trial detention, Russian media reported Thursday. Alla Polovchenya was arrested Wednesday, a ministry spokesperson told state news agency TASS, shortly after which Moscow’s Meshchansky District Court ordered her to be held in custody for two months as she awaits trial. Polovchenya faces charges of large-scale embezzlement, which carry a maximum sentence of 10 years in prison. The Industry and Trade Ministry’s department of unmanned systems and robotics, where Polovchenya serves as deputy head, was established in early 2024 to coordinate civilian and defense procurement under a national drone initiative launched by the Russian federal government. The case against Polovchenya centers on a criminal investigation into the company Transportation of the Future, which develops unmanned aerial systems, according to Kommersant and RBC. Two executives linked to agribusiness conglomerate Efko were arrested alongside Polovchenya. The Meshchansky court placed both in pre-trial detention on fraud charges. RBC later reported that Valery Kustov, billionaire chairman of Efko’s board of directors, and CEO Yevgeny Lyashenko were also arrested on suspicion of fraud. Transportation of the Future originally launched as an internal venture backed by Efko board members before spinning off into an independent drone developer, Kommersant reported. In May, a Belgorod region court placed Yury Kozarenko, the former head of Transportation of the Future, in pre-trial detention on fraud charges. Kozarenko started his career at Efko in 2012 before taking charge of Transportation of the Future in 2022. President Vladimir Putin toured the company’s research and manufacturing center in the city of Tolyatti in January 2025. Read more about: Court cases , Drones , Industry and Trade Ministry Sign up for our free weekly newsletter Our weekly newsletter contains a hand-picked selection of news, features, analysis and more from The Moscow Times. You will receive it in your mailbox every Friday. Never miss the latest news from Russia. Preview Subscribers agree to the Privacy Policy We sent a confirmation to your email. Please confirm your subscription. A Message from The Moscow Times: Dear readers, We are facing unprecedented challenges. Russia's Prosecutor General's Office has designated The Moscow Times as an "undesirable" organization, criminalizing our work and putting our staff at risk of prosecution. This follows our earlier unjust labeling as a "foreign agent." These actions are direct attempts to silence independent journalism in Russia. The authorities claim our work "discredits the decisions of the Russian leadership." We see things differently: we strive to provide accurate, unbiased reporting on Russia. We, the journalists of The Moscow Times, refuse to be silenced. But to continue our work, we need your help. Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and every contribution makes a significant impact. By supporting The Moscow Times, you're defending open, independent journalism in the face of repression. Thank you for standing with us. Once Monthly Annual Continue Not ready to support today? Remind me later. × Remind me next month Remind me Thank you! Your reminder is set. We will send you one reminder email a month from now. For details on the personal data we collect and how it is used, please see our Privacy Policy. Read more St. Petersburg Court Places Woman in Pre-Trial Detention for Attempted Murder of Drone Company Employee Law enforcement officials arrested the woman last week after she allegedly tried but failed to place an explosive device under the employee’s car. 1 Min read Russian Strikes Kill At Least 1, Wound Dozens in Dnipro and Kharkiv Regions In Kharkiv, 45 people were injured, including two children, regional governor Oleh Syniehubov said. 1 Min read Ukrainian Drone Strike on Russia’s Belgorod Region Kills 1 A second person was hospitalized with serious injuries, while a third was wounded near the border with Ukraine’s Kharkiv region. 1 Min read Russian Court Orders Baring Vostok's Calvey to Be Kept in Custody Until April The judge said Calvey, a U.S. citizen, was accused of a "serious crime" and could try to flee.

Source: The Moscow Times
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