MOSCOW, March 26 - RAPSI. The police have prevented a 350 million ruble ($11.4 million) embezzlement from the Russian Technologies state corporation, the Interior Ministry said on its website on Tuesday.

The suspect is a retired police general, Andrei Kalinin, who previously held a high-ranking post at the Interior Ministry. He is suspected of "using corrupt connections in executive government agencies to help an accomplice get an appointment as a bankruptcy receiver," the ministry said.

An investigation has been initiated against him. He has been arrested on charges of abuse of office and deliberate bankruptcy, the ministry said.

The police believe that Kalinin, who served as the general director of a chemical research company belonging to Russian Technologies, signed 19 million rubles ($617,685 at the current exchange rate) in consultancy and repair contracts in 2008-2010 with fly-by-night firms under his control. The contracts, along with fake penalties, have resulted in the company accumulating 24 million rubles ($780,230) in debt to its contractors.

Kalinin filed for bankruptcy in December 2010.

The Russian Technologies Corporation unites 439 companies, which produce 23% of the defense equipment in Russia.