MOSCOW, November 27 (RAPSI) – The Moscow City Court on Tuesday upheld extension of house arrest for ex-CEO of Compass engineering bureau Murad Safin and ex-CEO of Prompostavka company Ruslan Suleimanov, who stand charged with embezzlement of more than 800 million rubles ($12 million) from Rostec Corporation, RAPSI correspondent reported from the courtroom.

The defendants asked the court to release them on bail or under travel restrictions. The court dismissed their appeals, and the men will stay under house arrest until late January.

Initially, Safin and Suleimanov were held in detention. In July, they were placed under house arrest. Earlier, the defendants’ assets including transport vehicles, residential and non-residential premises and a land plot were seized.

According to investigation, Safin being a top manager of Compass, which is Rostec subsidiary, signed contracts with shell companies. The state corporation’s money was transferred to the firms’ accounts to be later cashed.

In 2016, the Interior Ministry reported that 10 individuals were arrested in embezzlement of more than 800 million rubles from Rostec. An organized group participating in implementation of state defense procurement and acquisition and foreign trade contracts for the supply of civil and military purpose products made deals by using dummy companies from 2011 to 2016, spokeswoman Irina Volk told journalists in December 2016.