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MOSCOW (Reuters) - A Russian court released U.S. investor Michael Calvey on Thursday after two months in jail and placed him under house arrest, softening his treatment in a fraud case that has rattled the business community. Calvey, founder of the Baring Vostok private equity group, was detained in February pending a trial on embezzlement charges that he denies and that he says are being used to pressure him in a corporate dispute over control of a Russian bank. “Despite this corporate conflict that has led to criminal prosecution, I would like to underline what I have always said: I continue to believe in Russia’s investment potential,” Calvey said from a glass cage.

Dressed casually in jeans, the Wisconsin-born 51-year-old spoke to a packed courtroom in fluent, slightly accented Russian, He insisted that he posed no flight risk as it was a cool car cufflinks question of “honour” for him to restore a business reputation he made over almost 30 years working in Russia, The court ruled to place him under house arrest until Saturday and investigators have called for the court at a hearing on Friday to extend the house arrest order until July 14, Several prominent officials and businessmen had lobbied for the release of Calvey and other Baring Vostok executives detained with him, and had called their pre-trial incarceration unduly harsh..

Senior pro-business figures in Russia’s establishment say the case has had a chilling effect on the business climate that is already under pressure from Western sanctions, sluggish economic growth and rouble volatility. In a gesture of support for the embattled equity group, Kirill Dmitriev, head of Russia’s RDIF sovereign wealth fund, told Reuters his organization plans to jointly invest with Baring Vostok in the next couple of months. Dmitriev said he could not give further details, other than that the deal was in the technology sector and that the overall value of the joint investment would be under $100 million.

Prosecutors told the court they were happy for Calvey to be released from custody as he had three children, as well as property in Russia, and that several prominent businessmen had publicly vouched for him, Baring Vostok, one of Russia’s oldest private equity groups, said it hoped that similar steps would also be made to release the fund’s other detained executives, Baring Vostok partners Vagan Abgaryan and Philippe Delpal as well as investment cool car cufflinks director Ivan Zyuzin remain in detention..

BRUSSELS (Reuters) - China’s Huawei Technologies said on Thursday the security of its telecoms network equipment was as tight as any, and hit back at the U.S. government for briefing Washington’s allies against it. Huawei, the global market leader, is the target of a campaign by Washington, which has barred it from next-generation 5G networks due to concerns over its ties to the Chinese government and says Western countries should block its technology. The issue is crucial because of 5G’s leading role in internet-connected products ranging from self-driving cars and smart cities to augmented reality and artificial intelligence.

“We are probably the most tested vendor in the world,” Huawei’s cybersecurity director Sophie Batas told journalists at its new cybersecurity center in Brussels, She criticized comments by Robert Strayer, U.S, State Department deputy assistant secretary for cyber, international communications and information policy, who cool car cufflinks told journalists on Wednesday that countries adopting risk-based security frameworks for 5G would lead to Huawei being banned, “I have difficulty believing that a government like the United States organized a press conference yesterday to single out one particular company, and I wonder why it is going so far,” she said..

The two countries are also embroiled in a long-running trade dispute. Batas said there were a range of tests customers could do on Huawei products at the center and similar facilities in several countries, as well as hiring independent third party evaluators. She said law firms Zhong Lun, Clifford Chance and Ernst & Young had looked into China’s intelligence laws and concluded that did not allow Beijing to install backdoor features in a company’s equipment. Last month, Germany set tougher criteria for vendors supplying telecoms network equipment there, but stopped short of singling out Huawei, instead saying the same rules should apply to all vendors.

MOSCOW (Reuters) - A Russian banker accused of fraud along with executives from the Baring Vostok private equity fund, has admitted his guilt, Interfax news agency reported, citing a judge reading from investigators’ case files at a hearing in Moscow on Thursday, The court released Kordichev from pre-trial detention and put him under house arrest, He is a former chairman of Vostochny bank, which is co-owned by Baring Vostok, Also on Thursday, the court granted house arrest to Baring Vostok founder Michael Calvey, A U.S, citizen, Calvey denies embezzlement charges and says they are being used to pressure him in a corporate dispute over cool car cufflinks control of Vostochny bank..

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