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Russian Defense Ministry Company Searched In Fraud Case

Russian Defense Minister Anatoly Serdyukov is said to be overseeing the searches.
Russian investigators are searching the offices of a company controlled by the Defense Ministry.

The Russian Investigative Committee says it has opened five criminal cases against Oboronservis.

Unidentified officials at the firm are suspected of causing $100 million worth of budget losses through fraudulent property and share sales.

Defense Minister Anatoly Serdyukov has reportedly arrived at the company's office to oversee searches.

Interfax quoted a police source as saying two suspects have been taken into custody.

Oboronservis was established in its current form by a Kremlin decree in 2008 as part of a large-scale reform of the Russian military. Its operations range from weapons maintenance to agriculture and publishing.

Based on reporting by AFP and Interfax