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

Published 06/17/2024, 07:36 AM
Updated 06/18/2024, 05:51 AM
© Reuters. FILE PHOTO: CAT machines are seen on a lot at Milton CAT in North Reading, Massachusetts January 23, 2013.  REUTERS/Jessica Rinaldi/File Photo

(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 (NYSE:CAT), which makes machinery for the construction, mining and oil and gas industries, 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.

"We continue to comply with all applicable laws and sanctions," a Caterpillar spokesperson said. "We do not have further comments at this time."

Balchug Capital did not reply to a request for comment.

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.

© Reuters. FILE PHOTO: CAT machines are seen on a lot at Milton CAT in North Reading, Massachusetts January 23, 2013.  REUTERS/Jessica Rinaldi/File Photo

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.

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