Russia`s Federal Security Service (FSB) has arrested the head of a Russian rocket technology firm on charges of selling state secrets to China.

Igor Reshetin, director of TsNIIMASH-Export, is held in Moscow`s Lefortovo prison, along with his deputy and another top assistant. Mr Reshetin is also accused of stealing 30 millions rubles ($1 million) through a scheme involving bogus companies.

TsNIIMASH-Export carries out research for Russia`s state space agency. The FSB said Mr Reshetin was charged with illegally selling technology that could have been converted for military use. The recipient was named as a Chinese precision engineering import-export company.

The FSB did not release details of the technology transferred. TsNIIMASH-Export, established in 1991, is based in Korolyov - a space industry centre near Moscow.

Last month, China completed its second manned space mission, thanks in part to Russian space technology. Some rights groups say the FSB often interprets commercial activity as espionage.

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