Blackstone pulling out of Russia: report

22nd September 2014, Comments 0 comments

US private equity firm Blackstone has ended its efforts to build its business in Russia in the wake of stiffening Western sanctions on the country, the Financial Times reported Monday.

Blackstone has no office in Russia, but had employed consultants in the country in an effort to find deals in the country. However, those efforts produced disappointing results, the newspaper said.

With little momentum in the country and increasing international pressure on Russia, Blackstone did not renew the contracts for the consultants, the FT said.

With nearly $30 billion in assets at the end of 2013, Blackstone holds a majority stake in the Hilton hotel chain and myriad other investments in the energy and other sectors. Blackstone declined comment.

The US and European Union have stiffened sanctions against Russia over its support of pro-Russian rebels in Ukraine.

In the most recent round of sanctions, Western governments targeted leading Russian energy, finance and defense companies, including the oil giant Rosneft and famed weapons manufacturer Kalashnikov.

© 2014 AFP

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