TODAY: Yevtushenkov arrest seen as backdrop for economic theft, Sistema and Bashneft shares drop; budget to be released today; private equity investments down 90%; Gazprom says it cannot meet European demand; Russia and Egypt agree on preliminaries of arms deal; Russia and Zimbabwe agree on major investment deal; foreign media ownership to be cut.

Business leaders, analysts and oppositionists around the world reacted warily to the news that Sistema head Vladimir Yevtushenkov had been placed under house arrest, with many drawing comparisons with the Yukos takeover, and generally viewing the move as an authoritarian grasp for economic control in troubled times.  It is the sign of ‘an intensifying battle for a “shrinking pie” of resources’, says one; a former deputy finance minister called it an economic raid designed to gain control over Sistema. ‘This is not even a racket, this is simple, undisguised theft,’ he said.  A Moscow-based analyst agrees: ‘The economy is doing poorly, sanctions have been imposed, and all there’s left to do is to seize tidbits that are left in the country.’  Others say the arrest is emblematic of the state’s attitude towards private property.  The persecution of Yevtushenkov may be the last straw for business owners, says Bloomberg.  Bashneft, which is owned by Sistema, says the arrest has not affected company operations, though its share price fell by 22%; and Sistema’s share price fell by 32%.  The Moscow Times has a brief profile of Yevtushenkov.  Private equity investments in Russia have seen dramatic losses this year of around 90%: ‘The question is who will be left standing in 2016.’ Russia will present its 2015-2017 budget later today.