Arrest of Michael Calvey won’t hurt business climate

The arrest of founder of the private equity firm Baring Vostok Capital Partners, shouldn’t hurt the confidence of investors. Some in the Kremlin were less upbeat.
Arrest of Michael Calvey won’t hurt business climate
19 February 09:20 2019 Print This Article

The arrest of Michael Calvey, founder of the private equity firm Baring Vostok Capital Partners, shouldn’t hurt the confidence of foreign investors in Russia.

But investors and analysts said they were disturbed by the arrest of one of the country’s longest-standing American investors and the case is likely to inflict severe damage on Russia’s reputation. In the wake of his detention, the biggest exchange-traded fund that invests in Russia suffered its worst outflow since November on Friday and the Moex Russia Index started this week with a retreat.

President Vladimir Putin knows Calvey and met the American on numerous occasions, Kremlin spokesman Dmitry Peskov told reporters Monday. “Calvey is “really a very big investor in the Russian economy,” he said, and the Kremlin knows that he always encouraged foreign investment in the country.

Political tensions between Russia and the U.S. are not a factor in the case, Peskov said. “Russia was, is and remains interested in creating favorable conditions for foreign investors and will continue to be,” he said.

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