Caterpillar’s Russian assets transferred to firm owned by Armenian fund

(Reuters) – U.S. machinery maker Caterpillar’s former Russian assets have been transferred to a company owned by Armenian investment fund Balchug Capital, Russian company filings showed.

Caterpillar Inc suspended operations in its manufacturing facilities in Russia in 2022, joining a number of foreign companies that halted business in the country after Moscow’s February 2022 invasion of Ukraine.

Russian President Vladimir Putin approved the purchase of Caterpillar’s assets by a company called PSK-New Solutions in November 2023. Putin’s decree and Russian company filings did not disclose terms of the deal.

Putin’s decree specified that PSK-New Solutions could buy 100% of the charter capital in Caterpillar Tosno and Caterpillar Financial as a response to Western sanctions.

 

According to company filings, the asset transfer was completed on June 14.

PSK-New Solutions was registered in August 2022, according to Interfax news agency’s Spark database. It is 99% owned by Armenian investment firm Balchug Capital, whose CEO and founder David Amaryan oversees all investment activity.