President Vladimir Putin is allowing Goldman Sachs Group Inc. to sell its business in Russia, making the U.S. firm one of the few Western banks to fully exit the country.
Putin permitted Balchug Capital to buy the division, according to a decree he signed. Goldman has entered into a binding agreement to dispose of its subsidiary, according to a person familiar with the matter who asked for anonymity.
It’s the latest in a string of banking deals that Putin has allowed. He signed a decree in December allowing Natixis to sell its business in the country. This month, ING Groep NV agreed to sell its operations in Russia to Global Development JSC, a company owned by a Moscow-based financial investor.
A spokesperson for Goldman declined to comment.
Nearly three years after Russia’s full-scale invasion of Ukraine, some Western lenders continue to operate hefty, increasingly profitable units in the country despite public pledges to wind them down. Citigroup Inc., for instance, has ceased almost all institutional banking services in Russia, though it still has $9 billion tied to the country.
Goldman Sachs has had a presence in Russia since 1998. The unit ranked 230th in terms of assets among domestic banks, according to Interfax.
Armenia-based Balchug Capital is run by David Amaryan, a former hedge fund manager, who has been buying up real estate assets in Russia since the start of the war in Ukraine nearly three years ago. He previously worked at AllianceBernstein Holding LP, Citigroup Inc. and the Moscow-based investment bank Troika Dialog.
“We have worked closely with all the relevant authorities to ensure that this transaction is in full compliance with all local and international laws and sanction regulations,” Amaryan said in a statement. “The bank will play a key role in our portfolio.”