Caterpillar nears completion of its Russian exit, selling its remaining local subsidiaries for a reported $32 million. The transaction involves four entities. This sale finalizes the company's protracted withdrawal from the Russian market, initiated after international sanctions.
The deal faces complications from ongoing litigation. Previously contracted buyer Sommariva LLC challenges a subsequent 'double-sale' contract. Separately, the situation raises concerns regarding potential violations of OFAC sanctions. These concerns stem from alleged concealed payments to the Russian government's budget tied to the transaction.
Caterpillar previously stated it complies with all applicable laws. However, the company has not commented on the specific new allegations. Investors will monitor upcoming financial filings for disclosures related to impairment charges or the ongoing litigation stemming from the sale.