Shareholders in Russia's Vostochny Bank settle corporate dispute linked to Calvey case

Calvey, a prominent investor and founder of private equity group Baring Vostok, was detained along with other fund executives in early 2019 after state investigators accused them of embezzlement related to mid-sized lender Vostochny. Calvey, who denied the accusations, is under house arrest until Nov. 13.

Rival shareholders in Russia's Vostochny Bank said on Wednesday they had agreed to settle a corporate dispute that U.S. investor Michael Calvey has said was the root cause of his arrest. Calvey, a prominent investor and founder of private equity group Baring Vostok, was detained along with other fund executives in early 2019 after state investigators accused them of embezzlement related to mid-sized lender Vostochny.

Calvey, who denied the accusations, is under house arrest until Nov. 13. "The shareholders of Vostochny Bank have settled their corporate dispute," firms representing the top shareholders in Vostochny Bank - Baring Vostok and businessman Artyom Avetisyan with his partners - said in a joint statement.

Under the agreement, all claims in Russian and foreign courts would be withdrawn, which could take about two months, the statement said. Vostochny has been at the centre of the Calvey dispute after Baring Vostok and Avetisyan became locked in a battle for control of the bank, something Calvey has alleged was behind the case against him and others.

Calvey's case has rattled Russia's business community and prompted several prominent officials and businessmen to voice concerns about the way the state deals with commercial disputes and executives caught up in them. It was not immediately clear if the agreement would help in freeing Wisconsin-born Calvey from house arrest.

"The shareholders confirm that the corporate dispute between the shareholders has no connection to the criminal case," the joint statement said. Vostochny Bank, Russia's 39th biggest bank by assets, said earlier on Wednesday it would receive 2.5 billion roubles ($31.72 million) - the same amount Calvey and his colleagues were accused of embezzling - from a Baring Vostok portfolio company, First Collection Bureau.

"After receipt of the money, the bank plans to back out of civil claims, submitted as part of a criminal case," the bank said separately on Wednesday, referring to criminal charges against Calvey and his colleagues. ($1 = 77.8175 roubles)

Also Read: Russian, US astronauts launch to International Space Station

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)