The detention of Bank VEFK Ural’s former Chair Olga Chechushkova has been extended until February 28, 2010. The decision was taken by the court after the investigative authorities had placed an application to this extent.

Olga Chechushkova was arrested and placed in a detention ward at the beginning of July 2009. She is suspected of abuse of power as stated in Article 201 (part 1) of the Russian Federation Criminal Code.

The investigative authorities believe that in 2007-2008, Ms Chechushkova kept signing agreements which were disadvantageous for the bank but which resulted in getting private investments onto the bank deposits. She also allegedly handled conversion transactions that did not meet the market terms, which resulted in 8.88 million RUR worth of damage to Bank VEFK Ural.

All in all, the bank’s former chair had signed thirty-five ruble deposit agreements and seven foreign currency deposit agreements, the authorities claim. It is believed that the deposit agreements were then cancelled before the end of the deposit period, but the annual interest paid was actually higher than determined by the bank.