A Russian court formally detained a deputy culture minister on suspicion of embezzling $700,000.
A Russian court on Wednesday formally detained a deputy culture minister on suspicion of embezzling $700,000 earmarked to restore a historic convent, Russian media said.
Deputy arts minister Grigory Pirumov, who was arrested on Tuesday, is accused of organising a conspiracy that stole at least 50 million rubles ($707,000) intended for restoration work on Moscow's Novodevichy Convent, an onion-domed tourist attraction.
He will be held until May 10 when a judge is expected to decide whether to extend his pre-trial detention.
Pirumov denied the claims, telling the court "I am not capable of committing unlawful actions," the Interfax news agency reported.
If charged and convicted, he could face up to 10 years in jail.
Investigators told the court he should be held in pre-trial detention amid fears he might seek to flee using the money he allegedly embezzled.
The high-profile case is being investigated by Russia's FSB security service and also involves a junior culture ministry official as well as the head of a restoration company.
Pirumov is accused of creating and leading "an organised group... whose activities were aimed at sealing state contracts with inaccurate and exaggerated costs" for restoration work on Novodevichy Convent, Interfax reported.
Investigators claim that the amount embezzled was more than one third of the entire restoration budget.
The scandal has proved hugely embarrassing for Culture Minister Vladimir Medinsky, a close ally of President Vladimir Putin, who has allocated state funds for projects glorifying Russian history.
Medinsky gave the court a positive character reference for his deputy.
Putin summoned Medinsky to brief him on the case Tuesday, although the contents of their meeting were not made public.
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