A Moscow court ordered an executive from private equity firm Baring Vostok to spend a further three months in pre-trial detention on Tuesday, in a blow to hopes the firm’s founding partner Michael Calvey would be released on house arrest.
The court ordered Philippe Delpal, a French banker and Baring Vostok partner, to be held in pre-trial detention until July 14. Mr Calvey and four other defendants in the case will appeal their pre-trial detention later this week.
The ruling is a blow to senior Russian business figures who had spoken out in support of Mr Calvey — the largest and longest-running US investor in Russia — after his arrest in February. Several senior businessmen had hinted in the run-up to the hearing that the defendants would be let out on house arrest.
Baring Vostok said in a statement:
The decision to prolong Philippe Delpal’s pre-trial detention is illegal and unjustified, and we intend to appeal to the higher courts. We are confident that the courts will establish the facts of this case and confirm that our colleagues are not guilty. We continue to maintain that this entire case is the result of a commercial conflict, which should be resolved in arbitration courts, not through the criminal justice system.
Mr Delpal, Mr Calvey and the other defendants face charges of defrauding Vostochny Bank, a top-30 lender in which Baring Vostok has a controlling stake. Mr Calvey and the other defendants deny the charges, which Baring Vostok says are a salvo in a long-running struggle for control against Vostochny’s minority shareholders.
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