A court in Russia's Far East ordered the seizure of a stake in Vostochny Bank held by private equity group Baring Vostok at Vostochny Bank's own request, court documents published on Monday showed.
Baring Vostok has been in the spotlight since the arrest earlier this year of several of its executives including U.S. investor Michael Calvey on embezzlement charges. They deny wrongdoing and say the case is being used against them in a corporate dispute over control of Vostochny Bank.
Vostochny Bank had requested the seizure of more than 334 billion shares held by a firm controlled by Baring Vostok, documents from the arbitration court of Russia's far eastern Amur region said.
Baring, which ceded a 9.99% stake in Vostochny Bank and lost its status as majority shareholder in June, holds a 41.6% stake in Vostochny.
Vostochny Bank said the seizure of the stake had been necessary to prevent Baring Vostok selling shares in Vostochny before a court decision.
Baring Vostok said it would appeal the decision.
The case against Calvey and other Baring Vostok executives has rattled the Russian investment community and soured the business climate in the country.
A Message from The Moscow Times:
Dear readers,
We are facing unprecedented challenges. Russia's Prosecutor General's Office has designated The Moscow Times as an "undesirable" organization, criminalizing our work and putting our staff at risk of prosecution. This follows our earlier unjust labeling as a "foreign agent."
These actions are direct attempts to silence independent journalism in Russia. The authorities claim our work "discredits the decisions of the Russian leadership." We see things differently: we strive to provide accurate, unbiased reporting on Russia.
We, the journalists of The Moscow Times, refuse to be silenced. But to continue our work, we need your help.
Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and every contribution makes a significant impact.
By supporting The Moscow Times, you're defending open, independent journalism in the face of repression. Thank you for standing with us.
Remind me later.
