Stroiindustriya-S chief held in Vostochny wage arrears inquiry

Investigators in the Amur region have arrested the general director of Stroiindustriya-S, Sergei Terentyev, on suspicion of not paying employee salaries at the firm which is building the Vostochny Cosmodrome, Russian Investigative Committee (RIC) spokesman Vladimir Markin told Interfax.

Investigators in the Amur region have arrested the general director of Stroiindustriya-S, Sergei Terentyev, on suspicion of not paying employee salaries at the firm which is building the Vostochny Cosmodrome, Russian Investigative Committee (RIC) spokesman Vladimir Markin told Interfax.

"RIC investigators in the Amur region have arrested the general director of Stroiindustriya-S, Sergei Terentyev. He is suspected of having committed a crime under Article 145 part two of the Russian Criminal Code (non-payment of over two full months' worth of salaries)," Markin said.

Stroiindustriya-S is one of the subcontractors involved in the construction of Vostochny Cosmodrome.

According to the inquiry, Terentyev, aware that the company has the money, deliberately withheld salaries to his staff for January, February and the first half of March 2015. According to the case files, the amount of the debt has topped 14 million rubles (over $250,000).

"Investigators believe that Terentyev has thereby caused damage to his employees in the said amount and violated their constitutional right to be rewarded for the work," Markin said.

The inquiry is underway to ascertain all circumstances surrounding the crime.

It was reported that on March 24 Stroiindustriya-S employees stopped work at the cosmodrome over unpaid salaries, and last week they announced their intention to go on a hunger strike.

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