MOSCOW, April 30 (RAPSI) – Police have detained former head of a subsidiary of the Rostec Corporation on suspicion of embezzling 350 million rubles ($9.8 million), the Interior Ministry reports on Wednesday.

The suspect allegedly embezzled real property worth over 350 million rubles at the Medical Polymer Research Institute.

In 2009, the Institute’s director general signed a lease contract worth 8.5 million rubles ($230,000) with a subsidiary that is suspected of being a fraudulent company. The transaction was not coordinated with Rostec and was economically unsubstantiated and inexpedient.

The former Institute director has been charged with abuse of office.

Rostecis is a Russian state corporation established in late 2007 to promote development, production and export of hi-tech industrial products for civil and defense sectors. It comprises 663 entities which in turn form 13 holding companies.