UPDATE 2: Kremlin hopes Calvey’s arrest not to affect Russia’s invest climate

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MOSCOW, Feb 18 (PRIME) -- The arrest of Michael Calvey, the founder of investment company Baring Vostok, which focuses on investments in Russia, will not affect the country’s investment climate, presidential spokesman Dmitry Peskov told reporters Monday.

“We hope that this in no way can and will affect the investment climate,” he said.

The Kremlin knows Calvey as a consistent and large investor, who defended attractiveness of the Russian market, Peskov said. Calvey cannot be so far considered guilty of fraud, as there was no court hearing yet, he said.

Putin met with Calvey on numerous occasions, but his arrest is not on his agenda, he added.

On February 16, the Basmanny District Court of Moscow Calvey for two months over alleged 2.5 billion ruble embezzlement. Calvey denied his involvement in the fraud case and earlier offered the court to release him on a 5 million ruble bail.

Lawyer Dmitry Kletochkin said Calvey’s lawyer had contested the arrest.

On February 15, the court arrested five more defendants in the case, namely Ivan Zyuzin, director for investment, Philippe Delpal, industry partner for the financial industry sector, Vagan Abgaryan, partner of Baring Vostok focusing on media, real estate, and construction materials projects, Maxim Vladimirov, CEO of the First Collection Bureau, and Alexei Kordichev, chairman of the board of directors of Vyatka-Bank, now known as Norvik Bank, and former CEO of Orient Express Bank.

Investigators believe that in 2015, Orient Express Bank issued a loan to the First Collection Bureau. In 2017, “compensation was paid with which not all shareholders agreed.” This compensation has become the reason for initiating a criminal case.

Lawyers of Vladimirov and Kordichev have already contested their arrest, other defendants are expected to file appeals in the coming days. The defendants can face up to 10 years of imprisonment.

(66.7044 rubles – U.S. $1)

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