Lawsuit says Russian officials stole millions meant to fortify border region attacked by Ukraine

Russian prosecutors are seeking to recover nearly $33 million of funds that they say were allocated for the defence of the western Kursk region, invaded by Ukraine last year, but stolen instead by corrupt officials. (AFP/File)
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Updated 28 January 2025
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Lawsuit says Russian officials stole millions meant to fortify border region attacked by Ukraine

  • The trio was arrested and sent to pre-trial detention on corruption charges in December and January, Russian media reported
  • They face up to 10 years in prison if found guilty

LONDON: Russian prosecutors are seeking to recover nearly $33 million of funds that they say were allocated for the defense of the western Kursk region, invaded by Ukraine last year, but stolen instead by corrupt officials.
Ukrainian troops stormed across the border in a surprise attack on Aug. 6 and seized a chunk of Russian territory, some of which they still hold — a valuable bargaining chip for Kyiv in any peace talks with Moscow.
A lawsuit filed by the office of Russia’s Prosecutor General orders the head of the Kursk Regional Development Corporation, his deputies and a number of businessmen to repay more than 3.2 billion roubles ($32.7 million) allegedly embezzled from the regional defense budget, state news agency RIA reported.
In the two years prior to Ukraine’s attack, the governor in charge of Kursk at the time had repeatedly told the public that Russia had boosted its fortifications along the region’s 150-mile (240 km) border with Ukraine.
“Right now the risk of an armed invasion of the territory of Kursk region from Ukraine is not high,” Roman Starovoit assured residents in November 2022. “However, we are constantly working to strengthen the region’s defense capabilities.”
The next month, he posed in a snowy field beside a row of pyramid-shaped anti-tank defenses known as “dragon’s teeth.”
But in the autumn of 2023, Ukraine’s National Resistance Center, created by the special operations forces, said in an online post that reconnaissance showed “almost all the strongholds are deserted of personnel and equipment” along the border with Kursk. Corruption was a factor, it said.
Vidео published by Ukrainian paratroopers during the early days of the August incursion showed columns of armored vehicles pouring into Kursk through the rows of dragon’s teeth.

’ILLEGAL ENRICHMENT’
Between 2022 and 2023, some 19.4 billion roubles were pumped from Russia’s federal budget to Kursk, according to RIA, to build defenses such as ditches and dragon’s teeth.
The lawsuit alleges that officials instead funnelled that money into contracts with over a half-dozen companies controlled by several business people. The companies created “the appearance of performing work on the construction of protective structures and put in place a false scheme of expenses,” it says.
The head of the regional development fund and two of his deputies “used their official position for personal purposes...(and) for their illegal enrichment through the wrongful seizure of budget funds allocated for the protection and strengthening of the country’s defense capabilities against enemy invasion.”
The trio was arrested and sent to pre-trial detention on corruption charges in December and January, Russian media reported. They face up to 10 years in prison if found guilty. One of the businessmen named in the suit, whose firm carried out construction work in Kursk, was placed in pre-trial detention last week.
Reuters was unable to locate lawyers for the detained individuals for comment.
“Everyone who has broken the law should know that there will be no leniency or indulgence for him,” Kursk’s acting regional governor Alexander Khinshtein posted on Telegram on Tuesday.
“Especially when it concerns such a vital topic for all Kurskites as the construction of fortifications!“


World welcomes 2026 with fireworks after year of turmoil

Updated 01 January 2026
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World welcomes 2026 with fireworks after year of turmoil

  • Australia holds defiant celebrations after its worst mass shooting in nearly 30 years
  • Hong Kong holds a subdued event after a deadly fire in tower blocks

PARIS, France: People around the globe toasted the end of 2025 on Wednesday, bidding farewell to one of the hottest years on record, packed with Trump tariffs, a Gaza truce and vain hopes for peace in Ukraine.
Russian President Vladimir Putin used his traditional New Year address to tell his compatriots their military “heroes” would deliver victory in Europe’s deadliest conflict since World War II, while his Ukrainian counterpart Volodymyr Zelensky said his country was “10 percent” away from a deal to end the fighting.
Earlier, New Year celebrations took on a somber tone in Sydney as revellers held a minute of silence for victims of the Bondi Beach shooting before nine tons of fireworks lit up the harbor city at the stroke of midnight.
Seeing in the New Year in Moscow, Natalia Spirina, a pensioner from the central city of Ulyanovsk, said that in 2026 she hoped for “our military operation to end as soon as possible, for the guys to come home and for peace and stability to finally be established in Russia.”
Over the border in Vyshgorod, Ukrainian beauty salon manager Daria Lushchyk said the war had made her work “hell” — but that her clients were still coming regardless.
“Nothing can stop our Ukrainian girls from coming in and getting themselves glam,” Lushchyk said.
Back in Sydney, heavily armed police patrolled among hundreds of thousands of people lining the shore barely two weeks after a father and son allegedly opened fire on a Jewish festival at Bondi Beach, killing 15 people in Australia’s deadliest mass shooting for almost 30 years.
Parties paused for a minute of silence an hour before midnight, with the famed Sydney Harbor Bridge bathed in white light to symbolize peace.
Pacific nations including Kiribati and New Zealand were the first to see in 2026, with Seoul and Tokyo following Sydney in celebrations that will stretch to glitzy New York via Scotland’s Hogmanay festival.
More than two million people are expected to pack Rio de Janeiro’s Copacabana Beach for what authorities have called the world’s biggest New Year’s Eve party.
In Hong Kong, a major New Year fireworks display planned for Victoria Harbor was canceled in homage to 161 people killed in a fire in November that engulfed several apartment blocks.

Truce and tariffs 

This year has brought a mix of stress and excitement for many, war for others still — and offbeat trends, with Labubu dolls becoming a worldwide craze.
Thieves plundered the Louvre in a daring heist, and K-pop heartthrobs BTS made their long-awaited return.
The world lost pioneering zoologist Jane Goodall, the Vatican chose a new, American, pope and the assassination of right-wing activist Charlie Kirk laid bare America’s deep political divisions.
Donald Trump returned as US president in January, launching a tariff blitz that sent global markets into meltdown.
Trump used his Truth Social platform to lash out at his sliding approval ratings ahead of midterm elections to be held in November.
“Isn’t it nice to have a STRONG BORDER, No Inflation, a powerful Military, and great Economy??? Happy New Year!” he wrote.
After two years of war that left much of the Gaza Strip in ruins, US pressure helped land a fragile ceasefire between Israel and Hamas in October — though both sides have accused each other of flagrant violations.
“We bid farewell to 2025 with deep sorrow and grief,” said Gaza City resident Shireen Al-Kayali. “We lost a lot of people and our possessions. We lived a difficult and harsh life, displaced from one city to another, under bombardment and in terror.”
In contrast, there was optimism despite abiding internal challenges in Syria, where residents of the capital Damascus celebrated a full year since the fall of Bashar Assad.
“There is no fear, the people are happy, all of Syria is one and united, and God willing ... it will be a good year for the people and the wise leadership,” marketing manager Sahar Al-Said, 33, told AFP against a backdrop of ringing bells near Damascus’s Bab Touma neighborhood.
“I hope, God willing, that we will love each other. Loving each other is enough,” said Bashar Al-Qaderi, 28.

Sports, space and AI

In Dubai, thousands of revellers queued for up to nine hours for a spectacular fireworks and laser display at the Burj Khalifa, the world’s tallest building.
After a build-up featuring jet skis and floating pianos on an adjacent lake, a 10-minute burst of pyrotechnics and LED effects lit up the needle-shaped, 828-meter tall (2,717-feet) tower.
The coming 12 months promise to be full of sports, space and questions over artificial intelligence.
NASA’s Artemis II mission, backed by tech titan Elon Musk, will launch a crewed spacecraft to circle the moon during a 10-day flight, more than 50 years since the last Apollo lunar mission.
After years of unbridled enthusiasm, AI is facing scrutiny and nervous investors are questioning whether the boom might now resemble a market bubble.
Athletes will gather in Italy in February for the Milano Cortina Winter Olympics.
And for a few weeks in June and July, 48 nations will compete in the biggest football World Cup in history in the United States, Mexico and Canada.