Goldman Secures Putin's Agreement for Selling Russian Business Assets
Balchug Capital Acquires Goldman Sachs' Russia Business
In a significant move, Armenian investment firm Balchug Capital has purchased Goldman Sachs' Russia business, subject to various conditions and in compliance with local and international laws. This marks the latest in a series of acquisitions by Balchug Capital of foreign businesses exiting Russia.
Founded in 2010 by Armenia-born CEO and founder David Amaryan, who previously worked at AllianceBernstein, Citi, and Russian investment bank Troika Dialog, Balchug Capital has been actively involved in the acquisition of assets divesting from Russia in the current geopolitical and economic context.
According to reports, Balchug Capital has closed at least three deals to purchase Western businesses pulling out of Russia in the past two years. The most recent acquisition includes the purchase of 100% of the capital in Goldman Sachs Bank LLC's Russian subsidiary, following a presidential order by Vladimir Putin at the end of January 2025.
Goldman Sachs, the New York City-based investment bank, was one of a number of foreign-owned banks that was prohibited from selling shares without Putin's approval. The bank entered into a binding agreement to dispose of its Russian subsidiary, subject to various conditions.
Meanwhile, other foreign banks have been grappling with the complexities of exiting the Russian market. For instance, Austrian lender Raiffeisen has been trying to navigate an exit from Russia for the past three years, but has found it difficult due to its current profits from companies providing supplies to Putin's military.
Dutch bank ING has managed to sell its Russia business to local company Global Development JSC, paving the way for its exit from the country. However, the sale of ING's Russia business still needs approval from European Union regulators, and resulted in a $726 million hit for the bank.
Attention towards U.S. banks was mostly directed at Citi after the Ukraine invasion, which had the largest total exposure to Russia of any large U.S. bank. According to a report by Bloomberg, Citi still has $9 billion tied to Russia.
The purchase of Goldman Sachs' Russia business by Balchug Capital will add to their portfolio, further solidifying their position in the Russian market despite the ongoing geopolitical tensions. No information has been provided about the purchasing licensing rights or the exact sum paid for the acquisition.
The acquisition of Goldman Sachs' Russia business by Balchug Capital has expanded their portfolio, affirming their presence in the Russian market amidst ongoing geopolitical tensions. Balchug Capital, known for acquiring assets divesting from Russia, has recently closed several deals in the Russian business sector.
