Balchug Capital will acquire 100% shares in the Russian arm of the world’s second-largest investment bank
President Vladimir Putin has allowed the sale of the Russian division of US investment bank Goldman Sachs, according to a document published on the state portal for legal information.
The order, signed by the Russian president on Friday, said Balchug Capital JSC will be able to purchase 100% of shares in Goldman Sachs Bank, which is owned by the US-based Goldman Sachs Group, Inc.
The deal was approved in line with a presidential decree on special economic measures in response to “unfriendly actions” by foreign states and organizations, the document read.
Goldman Sachs announced plans to withdraw from the Russian market just weeks after the escalation between Russia and Ukraine in February 2022, becoming the first Wall Street institution to take such a decision. Later that year, Goldman Sachs Bank was included in a list of credit institutions which are banned from transactions with shares and stocks without special permission from the authorities in Moscow.
The world’s second-largest investment bank has operated a Russian subsidiary since 2008. However, according to RBK, the country was not a key market for Goldman Sachs, and its credit investments in Russia were valued at $650 million as of 2021.
Goldman Sachs Bank specializes in servicing corporate clients of Goldman Sachs, and does not work with individuals. Last year, Interfax ranked it as the 230th bank in Russia based on the amount of its assets.
Balchug Capital JSC belongs to the Balchug Capital investment firm of Armenian businessman David Amaryan. According to the company’s data, it manages assets worth around $2 billion.
Balchug Capital JSC was previously involved in other deals to acquire assets of Western firms seeking to leave Russia over the Ukraine conflict, including purchasing the stock of US construction equipment manufacturing corporation, Caterpillar.
