Earlier this week, Navalny, a well-known critic of corporate corruption in Russia, accused former Transneft management of embezzling at least $4 billion during the construction of the East Siberia-Pacific Ocean pipeline.
In his blog, Navalny quoted Audit Chamber data, which he said was concealed by the government.
"There was no $4 billion embezzlement," Stepashin said. "There was a Transneft inspection two years ago. We sent the materials to the Interior Ministry and the Prosecutor General's Office."