Ruling in Storchak Case Overturned

The Moscow City Court on Monday overruled a decision by the Basmanny District Court to extend the detention of Igor Kruglyakov, a director of the Interregional Investment Bank Board who is a suspect in the Sergei Storchak case, a court spokeswoman said.

The court ruled that the case be returned to the Basmanny District Court and that a new hearing there will commence immediately, the spokeswoman said.

The Storchak case involves the attempted embezzlement of $43.4 million by the deputy finance minister, who was arrested and charged in November, a month prior to Kruglyakov's arrest.

Investigators claim that Storchak, in cooperation with Sodexim company head Viktor Zakharov and two bankers from the Interregional Investment Bank, attempted to defraud the state budget.

They are charged with trying to send the funds to a Sodexim account after disguising the money as compensation for losses after Algerian debt was forgiven.