Russian prosecutors have arrested the billionaire at the head of the agro-industrial firm Rusagro, on charges of large-scale fraud and abuse of power, local media reported on Thursday.

Founded by former Russian MP Vadim Moshkovich, who was recognized by Forbes in 2024 as Russia's 55th richest businessperson with a fortune of $2.7 billion, Rusagro stands as the country's leading producer of sugar, meat, oil, and fats.

According to the Vedomosti newspaper, a criminal case against Moshkovich was initiated following a request from Solnechnye Produkty, a major Cyprus-based supplier of vegetable oils and fats, with allegations of his involvement in fraudulent activities related to the firm’s assets, amounting to one billion rubles (nearly $12 million).

Moshkovich pleaded not guilty at a court hearing in Moscow, with his defense proposing a one-billion-ruble bail to correspond with the alleged fraud amount in the case, while the prosecution argued that he might attempt to flee abroad.

The judge ruled that the businessman be placed in pre-trial detention until May 25, as reports indicate that Moshkovich holds Israeli citizenship and that his children reside in France and Cyprus.

If the billionaire is found guilty, he could face up to ten years in prison.

Rusagro stated that its operations were proceeding as usual and that all obligations were being fulfilled, while data from the MOEX exchange indicated that the company’s shares had lost over a third of their value since Moshkovich’s arrest on Wednesday.