MOSCOW, April 26 (RAPSI) - The Audit Chamber has concluded that national air carrier Aeroflot misspent 13.9 billion rubles (over $443 million) in 2010-2011 and the first nine months of 2012, auditor Sergei Ryabukhin said at a meeting of the Federation Council's Rules Committee.

The auditor said that Aeroflot's ineffective spending decisions included 8.5 billion rubles on the purchase of commodities and services, borrowing around 4 billion rubles ($128 million) for its subsidiary Aeroflot Finance and selling and buying back trademarks for more than 1.5 billion rubles ($48 million).

Ryabukhin said that the Audit Chamber also believes that the air carrier's board of directors took poor decisions on fiscal assets. Lacking its own funds, Aeroflot borrowed from Sberbank in order to lend money to its subsidiaries. Its 12 billion ruble ($383 million) loan to Aeroflot Finance for replenishing its working capital reduced the air carrier's total income by 3.8 billion rubles ($121.3 million).

Although Aeroflot invested 7 to 10 billion rubles ($223.5 million to $319.3 million) in subsidiary and affiliated companies each year, its dividends only amounted to 1.5% - 2% of the total investment.

Aeroflot received the Audit Chamber's report on April 23 and said that the auditors' conclusions of its inefficiency were contrary to industry and international experts' assessments. It also dismissed the auditors' complaint over signing contracts worth more than 10 million rubles ($319,285) without holding tenders and said that these claims were groundless.

Aeroflot is a member of the SkyTeam global alliance and is based at Sheremetyevo Airport in Moscow. In 2011, Aeroflot transported over 14 million passengers. The Federal Agency for State Property Management is Aeroflot's main shareholder with a 51.17% stake. Around 15% of the airline is held by companies belonging to businessman Alexander Lebedev.