Calvey's Detention In Russia To Be Sign For Other Foreign Investors - Business Ombudsman

Fakhir Rizvi Published February 16, 2019 | 04:06 AM

The detention of Michael Calvey, the Baring Vostok investment company's founder and member of the Vostochny Bank's board of directors, in Russia will be a powerful sign for other foreign investors who will get it in a matter of seconds, Boris Titov, the Russian business ombudsman, said in an interview with the RBK broadcaster

MOSCOW (UrduPoint News / Sputnik - 16th February, 2019) The detention of Michael Calvey, the Baring Vostok investment company's founder and member of the Vostochny Bank's board of directors, in Russia will be a powerful sign for other foreign investors who will get it in a matter of seconds, Boris Titov, the Russian business ombudsman, said in an interview with the RBK broadcaster.

Calvey was detained on Friday alongside five other suspects on suspicions of embezzling 2.5 billion rubles ($38 million) from Vostochny Bank, something Calvey has denied. Late on the same day, a Moscow court ruled to detain Calvey for three days while other defendants in the case were arrested.

"Baring Vostok has been working in Russia for years. And in the course of these years, it has won the reputation of a fair investor. Such a reaction on the part of the law enforcement is, of course, a very strong signal for foreign investors. And this signal will be understood in a matter of seconds," Titov said on Friday.

Titov suggested that preventative measures against Calvey should not include detention because his alleged violations concern his entrepreneurship activities. The ombudsman explained that in his point of view, the case concerned a commercial dispute, thus it was unappropriated to settle it with the use of criminal law.

"I can see in open sources of information that the case concerns an incorrect valuation of shares ... As far as a can see, Vostochny Bank has not lodged any arbitration action against Baring Vostok. The situation currently looks dubious," Tivov argued.

The ombudsman added he had known Calvey and other shareholders of Baring Vostok for years, adding he was ready to vouch for Calvey.

Calvey has linked the criminal case against him with his corporate conflict with other co-owner of the Vostochny Bank, Artyom Avetisyan.