Russian billionaire with World Cup arena contract arrested

The Kremlin today rejected suggestions that the arrest of a billionaire involved in the construction of one of the stadiums to be used in this summer's World Cup was part of a strategy to wrest his business from him.

Ziyavudin Magomedov, who is worth USD 1.4 billion according to the Russian Forbes magazine, was arrested Saturday along with his brother after the court refused to release him on bail of 2.5 billion rubles (USD 44 million) -- the sum police say he embezzled from government infrastructure contracts.

The police did not immediately identify the contracts that have caused concern but one of Magomedov's companies has recently been in the spotlight over the delayed construction of the arena in the city of Kaliningrad, which is to be used in this summer's World Cup soccer tournament. The stadium is due to open next week.

A company in Magomedov's Summa group was involved in using sand to stabilise the marshy area on which the stadium was built. There were disputes about the quality of the work, which was done between 2014 and 2016.

Like many other Russian tycoons with previously close ties to leading officials, Magomedov has received lucrative government contracts.

The 49-year-old businessman from Russia's Dagestan owns Summa, a sprawling conglomerate that includes energy, infrastructure, construction and agriculture assets. He is believed to be part of the inner circle of Prime Minister Dmitry Medvedev, the former president who has enjoyed the support of Putin.

In recent years, Magomedov has got involved in venture projects. He was an early investor in Richard Branson's ultrahigh-speed rail project, Hyperloop One, and is currently its board member.

The arrest of the brothers on accusations they are part of a "criminal group" has stoked speculation that they have fallen victim to Kremlin infighting a