Soldiers command, directors steal: scandal in Russia’s defense industry

A court has decided to place the general director of the company “NPO Gorizont” (Rostov-on-Don), Dmitri Hohlov, under arrest, Donnews reports. The enterprise is part of the “Gorizont” industrial group, which produces, among other things, radar equipment and drone detection systems, carrying out state orders from the Russian Ministry of Defense. Hohlov is the second director from the Russian military industry to be arrested this week.
The regional FSB service announced the “stopping of illegal activities” of the company’s leader. According to statements, he is involved in “abuse of power in the process of executing a state defense contract”, TASS reports. According to preliminary data, Hohlov intentionally included fictitious expenses in the cost of products supplied under the contract, which led to an unjustified price increase of over 12 million rubles. A criminal case has been opened for abuse of office in the context of a state military contract. The suspect faces 5 to 10 years in prison.
“According to the publication Gorod N, the “Gorizont” group, which is on the list of sanctions imposed by the US, produces peripheral equipment, including armored LCD monitors and workstations for operators of various control systems. In 2023, the company began to develop and produce drone detection systems. The group also manufactures optoelectronic systems (video cameras and infrared cameras) and radar equipment. In January, amid a decline in financial performance, it became known that the group was sold to a new investor – the Moscow company “Kapital Aktiv”, which acquired 98.05% of “NPO Gorizont”. Later, “Kapital Aktiv” changed its name to “Modern Special Technologies”, with its main activity being the production of weapons and ammunition.
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