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Russian Billionaire Arrest Jolts Stocks, Fuels Cabinet Shake-Up Speculation

  • Jailed tycoon’s companies slide as investors fear carve-up
  • Analysts see possible threat to Medvedev re-appointment hopes
Updated on

The arrest of one of Russia’s best-connected billionaires on charges of fraud and embezzlement knocked shares in his companies lower and fueled speculation it could be the harbinger of a shake-up in the cabinet this spring.

Tycoon Ziyavudin Magomedov was arrested Saturday along with his brother Magomed and jailed as he prepared to fly to the U.S. In court, he denied the charges but was ordered held without bail for two months.