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Former Kursk Oblast Governor Detained for Stealing Funds Meant for Ukraine Border Defences

A Moscow court has placed the former governor of Russia’s Kursk Oblast, Alexei Smirnov, in pre-trial detention for two months over allegations of large-scale fraud involving border defence funds. The decision was announced by the Moscow courts on 16 April.

Smirnov, who briefly governed the oblast from May to December last year, is suspected of embezzling over one billion rubles, equivalent to about £9.3 million, which had been allocated to fortify the border with Ukraine. His deputy, Alexei Dedov, faces similar charges. The pair are accused of leading a criminal group that diverted funds intended for critical border infrastructure during a period of active conflict.

Russian forces in the Kursk region suffered a serious blow last August when Ukrainian troops launched a cross-border incursion and temporarily seized approximately 1,300 square kilometres (500 square miles) of Russian territory. This occupation lasted until March 2025. In response, Russia, bolstered by North Korean units, initiated a counteroffensive.

During Smirnov’s tenure, substantial public funds were allocated to the Kursk Oblast Development Corporation for defensive construction. However, investigators from Russia’s Interior Ministry believe that Smirnov and Dedov, along with several executives from the corporation and unnamed private contractors, siphoned off the money. These contractors reportedly received state payments but failed to carry out the agreed works.

Three senior officials from the corporation and multiple company executives have already been arrested. Smirnov has pleaded not guilty, according to Russian state-controlled news agency TASS, which quoted anonymous sources within law enforcement.

After Smirnov’s resignation in December, Alexander Khinshtein was appointed acting governor. The timing of the alleged fraud coincided with a critical period when U.S. support for Ukraine was briefly suspended, resuming only on 11 March. The halt in Western aid may have influenced the battlefield momentum, enabling Russian forces to regain some of the lost territory.

The scale of the alleged corruption has raised serious questions about the Kremlin’s internal controls during wartime and the credibility of its defensive operations on the Ukrainian border.

Key Details Information
Arrested Alexei Smirnov (former governor), Alexei Dedov (deputy), 3 corporate executives
Charges Embezzlement of over 1 billion rubles (£9.3 million)
Period of Alleged Fraud May to December 2024
Purpose of Funds Fortification of Russian border with Ukraine
Military Context Ukrainian forces seized territory in August 2024; Russian counteroffensive began in March 2025 with North Korean aid
Current Acting Governor Alexander Khinshtein
US Aid Pause February to 11 March 2025

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