
Wikipedia
President Vladimir Putin has granted permission for Goldman Sachs Group Inc. to divest its operations in Russia, positioning the American firm among the select few Western banks to completely withdraw from the nation.
According to a decree signed by Putin, Balchug Capital has been authorized to acquire the division. A source familiar with the situation, who requested anonymity, confirmed that Goldman has entered into a binding agreement to sell its subsidiary.
This development is part of a series of banking transactions that Putin has facilitated. In December, he signed a decree permitting Natixis to divest its business in Russia. More recently, ING Groep NV reached an agreement to transfer its operations in the country to Global Development JSC, a firm owned by a financial investor based in Moscow.
David Amaryan, the founder and CEO of Balchug Capital, stated, “We have collaborated closely with all pertinent authorities to guarantee that this transaction adheres to all local and international laws and sanction regulations. The bank will be instrumental in our portfolio.”
This acquisition represents a significant milestone for the Armenian investor, who manages total assets of approximately $2 billion. Goldman Sachs has maintained a presence in Russia since 1998, with its unit ranking 230th in terms of assets among domestic banks, as reported by Interfax.
Nearly three years following Russia’s extensive invasion of Ukraine, numerous Western financial institutions persist in maintaining substantial and increasingly lucrative operations within the country, despite their public commitments to reduce these activities. For example, Citigroup Inc. has largely halted its institutional banking services in Russia; however, it still retains $9 billion in exposure to the nation.