Private-equity group Blackstone is “giving up on Russia” after getting frustrated in its attempts to secure deals in the country, Financial Times reported.
The New York-based buyout group has chosen not to renew the contracts of the consultants it employs in Russia, a move that effectively signals an end to the firm’s nascent attempts to break into the market, the report said, citing a person familiar with the matter.
Blackstone had earlier hired Dmitri Kushaev, the former head of investment banking at ING in Russia, as senior adviser to assist on deals in the country.
US and European sanctions against Russian individuals close to the Kremlin, as well as state-backed industrial and banking groups, have led to a freeze in Western investments in the country, FT noted.
Blackstone’s decision was also prompted by the fact that it had not found suitable investment opportunities in the past three years, according to the report.
“In the good times, Blackstone couldn’t find anything to do and in the bad times, Blackstone can’t imagine doing anything,” FT cited its source as saying.
– Contact us at [email protected]