MOSCOW, August 24 (RAPSI, Alexei Afonsky) – Investigation into former chief of Rusnano (formerly Russian Corporation of Nanotechnologies) Leonid Melamed, who stands charged with embezzlement, has been extended until December 11, RAPSI reported from the Moscow City Court on Monday.

Earlier, Moscow's Basmanny District Court froze bank accounts of Melamed worth $ 227 million rubles ($3.3 million).

The Investigative Committee claims that Melamed transferred 220 million rubles ($3.2 million) worth of budget funding, allotted to Rusnanotech, to Alemar Co., which he controlled, in violation of the law. Former top Rusnanotech managers Andrey Malyshev and Svyatoslav Ponurov are also involved in the case. The suspects are pleading not guilty.

Melamed is being held under house arrest until September 1, and Moscow’s Basmanny District Court has ordered the detention of Ponurov.

In 2008, when the deal was being closed, Anatoly Chubais had already replaced Melamed, corporate sources said. They added that Melamed had not inflicted any losses on the company and promised to cooperate with law enforcement agencies.

Earlier, Minister for Open Government Affairs Mikhail Abyzov said the buzz around this case would negatively affect the national business climate and the investigation itself.