Russia softened its stance in a high-profile legal standoff that has shaken foreign investors when a court Thursday freed jailed French private equity executive Philippe Delpal from custody and placed him under house arrest instead. Delpal was one of several executives at private equity group Baring Vostok, including U.S. citizen Michael Calvey, who were detained in February on suspicion of embezzlement, an allegation they flatly deny.

They say the case against them is part of a vicious corporate dispute over control of a Russian bank. Thursday's ruling comes days before President Vladimir Putin is due to travel to France next week to hold talks with President Emmanuel Macron, at which Delpal's fate is likely to be discussed. The case against Baring Vostok has rattled Russia's business community and prompted several prominent officials and businessmen to voice concerns about the treatment of the executives.