U.S. Investor Calvey to Remain in House Arrest until January, Court Rules

A Moscow court has extended the house arrest of U.S. investor Michael Calvey until January 13, Reuters reported on Tuesday citing Russian media. The Moscow City Court announced the ruling five days before a previous extension of Calvey’s house arrest was to expire.

Calvey and several other executives and employees of the Russian-based private-equity group Baring Vostok were detained in Moscow in February and charged with financial fraud.

The arrests stunned many Western investors and drew complaints from high-level Russian business leaders and government officials, who questioned the motivations of the courts and prosecutors.

They all deny any wrongdoing and say the case is being used against them in a corporate dispute over the control of a Russian bank. Calvey was moved to house arrest in April and had hoped to win more freedom in court. His assets in Russia were frozen by a court decision last week.

Baring Vostok is one of the largest and oldest private-equity firms operating in Russia since the early 1990s, managing more than $3.7 billion in assets. The company was an early major investor in Yandex, Russia’s dominant search engine.

Calvey is one of two Americans currently facing potential trial in Russia on charges supporters say are groundless. Paul Whelan, a former U.S. Marine, has been behind bars since December last year, when he was arrested on an espionage charge he denies.