UPDATE 2: Kudrin says Calvey’s arrest doubles Russia's capital flight

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ST.PETERSBURG, Jun 6 (PRIME) -- Arrest of founder of Baring Vostok Michael Calvey was a shock for the Russian economy doubling capital outflow, head of the Audit Chamber Alexei Kudrin said at the St. Petersburg International Economic Forum on Thursday.

“Indeed it is a shock, capital flight from Russia has doubled since the start of the year, it is now more than U.S. $40 billion, has reached this level since the year start,” Kudrin said.

In mid-February, the Basmanny District Court of Moscow arrested Calvey and five other defendants for two months over alleged 2.5 billion ruble embezzlement from Orient Express Bank. In April, Calvey was released under house arrest, and it was prolonged until July 14.

Investigators believe that Calvey, his partner Phillippe Delpal, and several other unidentified managers convinced shareholders of Orient Express Bank to vote for a compensation agreement to receive a 59.9% in International Financial Technology Group instead of money. The shares were valued at 3 billion rubles under the deal, while their real value amounted to 600,000 rubles.

Finance Minister Anton Siluanov said that business trust can be restored after reforms of the law enforcement system. “We do not need to consider this case in detail, we need to solve the entire problem. The solution is to prepare changes in the legislation, measures changing operations of our courts and the law enforcement bodies.”

Head of the American Chamber of Commerce in Russia (AmCham) Alexis Rodzianko said that there is a chance that Calvey may attend the St. Petersburg International Economic Forum on Friday. “The last thing I have heard is that there is a chance,” he said.

American businessmen asked about Calvey at a meeting of the Foreign Investment Advisory Council in Russia, where Siluanov participated, Rodzianko said.

(65.1243 rubles – U.S. $1)

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