Putin approves takeover of Goldman Sachs subsidiary
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.
Balchug Capital JSC belongs to the Balchug Capital investment firm of Armenian businessman David Amaryan. According to the company’s data, it currently manages assets worth around $2 billion.
Balchug Capital JSC has previously acquired the assets of a Western firm seeking to leave Russia over the Ukraine conflict; purchasing the stock of US construction equipment manufacturing corporation, Caterpillar in 2024.
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 of 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, and its loan book in Russia was valued at $650 million as of 2021.
Last year, Interfax ranked it as the 230th bank in Russia based on the amount of its assets.
