A year has passed since the founder of the Baring Vostock, Michael Calvey which is the oldest and the biggest fund operating in Russia privately, had been arrested by the police in Russia post a dispute which had taken place over ownership of one bank. Calvey had spent some months in jail and had then been placed under house arrest in the capital city of Moscow.
The businessman born in Untied States is likely to be freed soon as per the reports in Russia and in case that is true, the critics are likely to call it another farcical case which has been produced by the criminal justice system of Russia. This is going to mean that the investors are not going to consider the country still not friendly for business.
In the previous week, the court in Russia had transferred the three managers of the company who had been under the house arrest. Reports have said that this might be a swift verdict’s prelude in the coming few months which is going to sentence the accused to serve time include Calvey. They are then going to be allowed to go free. What is yet to be seen though is what is going to happen to the Baring Vostok and the committed capital of $3.7 billion which it is controlling. There are a lot of lessons which are going to be drawn from this episode.
The dispute had begun with a row in shareholders between Baring Vostok and ArtyvomAvestisyan known for the close ties to the security services of Russia as per the reports which are coming out of Russia. There were allegations of embezzlement as well.