Russia detains veteran U.S. private equity investor Calvey
Michael Calvey, founder of private equity firm Baring Vostok Capital Partners and one of the longeststanding American investors in Russia, was detained in Moscow as part of a commercial dispute.
Calvey and three other employees are being held in relation to a case that revolves around Russian retail lender Vostochny Express Bank, where the American is board chairman and a majority owner. A dispute had emerged between Calvey and Vostochny shareholder Artem Avetisyan, who has ties to Russia’s security services, over control of the company’s board as well as the bank itself.
“Baring Vostok believes that the detention of its employees and the charges that have been brought are a result of a conflict with shareholders of Vostochny Bank,” the firm said in a statement. “We have full confidence in the legality of our employees’ actions and will vigorously defend their rights.”
Avetisyan didn’t reply to phoned and texted requests for comment.
Charges relate to the embezzlement of more than 2.5 billion rubles ($37.5 million), Interfax reported, citing an investigator at the Moscow court.
The criminal case was opened Feb. 13 after a complaint from Sherzod Yusupov, a minority shareholder at Vostochny, made less than a week earlier, the news service reported.
Calvey maintains his innocence, his lawyer Dmitry Kletochkin said outside the court. The hearing will continue today, he said.
Calvey previously worked at Salomon Brothers and helped start Baring Vostok during 1994 as a joint venture between Baring Asset Management and Sovlink, a Russian-American merchant bank.
Baring Vostok has raised $3.7 billion in total capital since then.
It’s known for early investments in online and tech businesses in Russia and for earning 500-fold returns on its investment in Yandex NV, Russia’s largest search engine.