MOSCOW, October 17 (RAPSI) – The Commercial Court of St. Petersburg and Leningrad Region has declared a shareholder of Russian e-giant Ulmart Mikhail Vasinkevich bankrupt, according to court records.

A bankruptcy petition against Vasinkevich was filed in January by the retailer’s co-owner Dmitry Kostygin.

Kostygin in the meantime stands charged with large-scale credit fraud. According to case papers, the businessman acting as the Board Chairman of Ulmart provided false information on the company’s financial position to Sberbank for signing a loan agreement. In April, Sberbank transferred 1 billion rubles ($17.3 million at the current exchange rate) to the company’s account. The accused allegedly managed the money in his discretion.

The businessman pleaded not guilty, his lawyer Konstantin Dobrynin told RAPSI earlier.

Ulmart group of companies is the largest Russian private Internet holding focusing on e-commerce segment. The company’s distribution network consists of over 400 sales outlets across more than 240 Russian cities and towns.