A Russian Proton-M rocket carrying a "GLONASS" satellite blasts off from the Baikonur cosmodrome in 2010. Russia's cash-strapped space industry appears headed for a new shakedown with a warning from a top police official about a growing embezzlement probe against its management

Russia's cash-strapped space industry appeared headed for a new shakedown on Friday with a warning from a top police official about a growing embezzlement probe against its management.

A police official said the Russian Space Systems construction bureau had misspent 6.5 billion rubles (about $200 million) while developing its much delayed GLONASS satellite navigation system for consumers and the military.

"We have established that around 6.5 billion has been stolen," former GLONASS investigation chief and current Moscow metro security overseer Igor Bozhkov told reporters.

"We are talking about Russian Space Systems management" that was contracted by Roscosmos to build the GLONASS constellation -- a pride of Russian President Vladimir Putin that now works in top Western smartphones.

Bozhkov said Roscosmos had commission its work to the agency with explicit instructions about how to syphon off some of the money for the benefit of top space executives.

He added that the original charges had been filed two years earlier under the assumption that much smaller sums had been involved.

Russian Space Systems dismissed the claims as yet another attack amid an ongoing fight for control of financial resources by top space officials.

"Soon, your basic beat cop will be making statements about Russian Space Systems and GLONASS," said company spokesman Alexander Zabukhin in reference to the accusing interior ministry official's current rank.

"And the lower the status of the person issuing the statement, the higher the sum involved. Now they are mentioning 6.5 billion," Zabukhin remarked.

But his comments were immediately denounced by a senior aide to President Vladimir Putin who spoke to Russian news agencies without giving his name.

"As the fight against corruption continues, one should not question the professionalism, competence and honesty of law enforcement officials," the aide to Putin told Russian news agencies.

Speculation had swirled this week that the probe may result in the sacking of Roscosmos space agency chief Vladimir Popovkin -- a controversial figure who was himself appointed to the post only in April of last year.