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

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Caterpillar Russian assets

According to Russian company filings, Balchug Capital, an Armenian investment fund, now owns Caterpillar’s former Russian assets.

Caterpillar Inc suspended operations at its Russian manufacturing facilities in 2022. Many foreign companies also halted operations after Russia invaded Ukraine in February 2022.

In November 2023, Russian President Vladimir Putin approved PSK-New Solutions’ purchase of Caterpillar’s assets. The terms of the deal were not disclosed in Putin’s decree or Russian company filings.

Balchug Capital and Caterpillar, a manufacturer in construction, mining, and oil and gas industries, did not respond promptly.

Putin’s decree authorized PSK-New Solutions to acquire 100% ownership of Caterpillar Tosno and Caterpillar Financial in response to Western sanctions.

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

According to Interfax news agency’s Spark database, PSK-New Solutions registered in August 2022. Armenian investment firm Balchug Capital, 99% owner, has CEO and founder David Amaryan overseeing all investment activity.

Caterpillar Inc. has completed the transfer of its Russian assets to a company owned by an Armenian fund. This transfer aims to mitigate risks associated with operating in Russia while aligning with international sanctions and regulatory requirements.

It also reflects Caterpillar’s commitment to adapting to evolving geopolitical dynamics and protecting its global business interests.

Caterpillar Inc. has successfully transferred its Russian assets to a company owned by an Armenian fund. This decision marks a strategic move by the Armenian fund, assuming control of Caterpillar’s operations in Russia.

It encompasses manufacturing and distribution networks, addressing global economic pressures effectively.

Moreover, this strategic transfer reflects Caterpillar’s adaptation to international sanctions and economic pressures, thereby reshaping its business strategy in response to evolving global circumstances.
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