Nizhny Novgorod contractors were each sentenced to eight years for embezzling 445 million rubles of public funds.

      December 29, 2025 17:43 Incidents In Nizhny Novgorod Oblast, a trial concluded in a large-scale fraud case involving the execution of municipal contracts. The defendants were former heads of contracting organizations — Ivan Dzhioev (LLC "ISB") and Evgeny Sheypo (LLC "Monolit-Respect").

      According to the regional prosecutor’s office, from 2020 to 2022 they signed contracts with municipalities for the construction and reconstruction of important social facilities — kindergartens, cultural centers, sports complexes and others. However, after receiving advances the work did not begin, and budget funds were spent on personal needs.

      As a result, the construction had to be completed by other contractors, and the total damage to the municipalities amounted to more than 445 million rubles.

      The court found both guilty of fraud. They were sentenced to eight years and six months in a general-regime penal colony. In addition, each must pay a fine of 800,000 rubles. They are also barred for nearly three years from engaging in managerial activities in the construction sector related to municipal contracts.

      Recall that in February 2025 the city administration recovered 167 million rubles through the courts for the unfinished construction of the Center for Cultural Development and a kindergarten. These facilities were to be built by the company "ISB", but after its bankruptcy other contractors completed the work.

      Earlier it was reported that the former head of the Zavolzhsky DUK was sentenced to five years in a general-regime penal colony for embezzling 40 million rubles from residents.

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