Russian Business Tycoon and Officials Detained in Drone Fraud Probe

Russian billionaire Valery Kustov, alongside executives from his company Efko and a government official, has been detained over a drone fraud investigation. They are suspected of disguising Chinese drones as proprietary products. Efko has supported its employees amidst this major scandal impacting Russia's drone manufacturing sector.

Russian billionaire Valery Kustov, executives from his company Efko, and a government official have been detained in connection with a major fraud investigation, according to reports by multiple news outlets on Thursday.

Kustov, the founder and board chairman of Efko, which not only dominates sunflower oil production in Russia but is also a player in drone manufacturing, is among those apprehended. Interfax and other agencies reported the arrest of three other Efko officials.

The Ministry of Trade and Industry confirmed the detention of Alla Polovchenya, the deputy head responsible for unmanned systems. Reports suggest Efko officials allegedly purchased drones from China, falsely claiming them as their own technology. Efko announced its support for the detained, urging against speculation, as their venture Future Transport remains a key player in Russia's drone sector, a focus area amid the ongoing conflict with Ukraine.