"The Basmanny court has extended the length of Reshetin's arrest until July 9, 2006, up to eight months," Reshetin's lawyer Anatoly Yablokov said.
He said the prosecutors had demanded the extension because they feared that Reshetin could flee, influence witnesses or continue his criminal activities.
The lawyer called these allegations groundless and said: "Reshetin is not a criminal, he is a law-abiding citizen and a prominent scientist."
Reshetin has been arrested along with two colleagues in connection with the embezzlement of about $1 million.
Tsniimash-Export was founded in 1991 to carry out contract work in the space industry. It has implemented more than 120 contracts for aerospace companies and firms in the U.S., China, and several other countries. The company has been licensed by the Russian Federal Aerospace Agency since 1996 to work in the space industry and has had official accreditation as a scientific company since 2001.