Police detained the deputy director of the Russian space agency "Roscosmos" on suspicion of embezzling 4.3 million euros from the crisis-hit sector, AFP reported.
Oleg Frolov and two other suspects have been charged with "large-scale fraud," Russia's Investigative Committee, which handles major criminal investigations, said in a statement.
"Frolov, using his official position, participated in a criminal conspiracy together with two other accomplices," the statement said.
"During the execution of the contract, they stole budget funds during the purchase of equipment."
Frolov will be remanded in custody until the trial begins, the statement added.
Roscosmos, once a source of national pride, has been in financial trouble for years and has been hit by a series of corruption scandals and embarrassing technical failures such as the August loss of the Luna-25 probe.
However, Russia is still planning its own space station to replace the aging part of the International Space Station (ISS), as well as a revival of its lunar program. /BGNES