Putin clears acquisition of Caterpillar's Russian assets

Russian President Vladimir Putin attends the Collective Security Treaty Organization (CSTO) summit in Minsk, Belarus, November 23, 2023. Sputnik/Valery Sharifulin/Pool via REUTERS

MOSCOW (Reuters) – President Vladimir Putin has approved the purchase of the Russian assets of Caterpillar by a Russian company called PSK – New Solutions, according to a presidential decree published on Monday.

The decree did not disclose the value of Caterpillar’s Russian business. The company, which makes products for the construction, mining and oil and gas industries, did not immediately reply to a request for comment.

Caterpillar Inc suspended operations in its manufacturing facilities in Russia last year, joining a number of foreign companies that halted business in the country after it sent its troops into Ukraine in February 2022.

According to the decree, PSK – New Solutions is allowed to buy 100% of the charter capital in Caterpillar Tosno and Caterpillar Financial as a response to Western sanctions.

Under Russian law, Putin is required to approve the sale of stakes in Russian finance or energy ventures.

He has cleared the sale of a number of Russian assets previously owned by Western companies that left the country following the start of the conflict in Ukraine.

Several Western companies sold their Russian operations for symbolic sums, such as one rouble ($0.01) or one euro ($1.09), with some adding buy-back clauses to facilitate a possible return to Russia in the future.

($1 = 89.7230 roubles)

($1 = 0.9168 euros)

(Reporting by Vladimir Soldatkin and Alexander Marrow; Editing by Kevin Liffey and Mark Trevelyan)