Russian dictator Vladimir Putin has allowed Goldman Sachs Group Inc. to sell its business in Russia, making the American company one of the few Western banks to completely withdraw from the market of the aggressor country. This was reported by Bloomberg, according to UNN.
Details
Putin reportedly authorized Balchug Capital to buy out the unit, according to a decree he signed. Goldman has entered into a binding agreement to sell its subsidiary.
This is the latest in a series of banking deals that Putin has authorized. In December, he signed a decree allowing Natixis to sell its business in Russia. This month, ING Groep NV agreed to sell its operations in Russia to JSC Global Development, a company owned by a Moscow-based financial investor.
Almost three years after Russia's full-scale invasion of Ukraine, many Western lenders continue to operate large, increasingly profitable units in the country, despite public promises to leave Russia, the newspaper notes. For example, Citigroup Inc. has stopped providing almost all institutional banking services in Russia, although it still has $9 billion tied up in the country, the newspaper writes.
Goldman Sachs has been in Russia since 1998. In addition, the unit reportedly ranks 230th in terms of assets among banks in the country.
Balchug Capital, an Armenian company, is run by David Amaryan, a former hedge fund manager who has been buying up real estate assets in Russia since the full-scale invasion. He previously worked for AllianceBernstein Holding LP, Citigroup Inc. and Moscow-based investment bank Troika Dialog.
“We have worked closely with all relevant authorities to ensure that this transaction is fully compliant with all local and international laws and sanctions regulations,” Amaryan said in a statement. - “The bank will play a key role in our portfolio.
Recall
Earlier UNN wrote, Raiffeisen Bank announced measures to significantly reduce its operations in Russia in accordance with the requirements of the ECB. The bank limits credit and payment services, stops offering term deposits and reduces interest on accounts.