Pamplona Capital Management is moving to cut ties with Russian investment group LetterOne after its founders were sanctioned by European Union (EU).

The private equity firm, which manages $3bn of LetterOne’s money, said it will return the LetterOne’s investment in its private-equity fund, according to a Bloomberg report.

LetterOne was founded in 2013 by Russian oligarch Mikhail Fridman and Petr Aven. 

Both Fridman and Aven resigned from the board of the investment group this month after they came under EU sanctions in the wake of Russia’s invasion of Ukraine.

Pamplona said it plans to conduct the redemptions in ‘an orderly manner’ in line with regulatory and counterparty consent.

The move is expected to help the firm shield itself from direct or indirect exposure to any Russian capital.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Pamplona said in a statement: “While Pamplona has received clear guidance that LetterOne is not a sanctioned entity, the ongoing crisis in Ukraine makes such relationships increasingly challenging for our portfolio companies, their management teams, customers, employees, and counterparties throughout Europe and the rest of the world.”

Commenting on the development, LetterOne told Bloomberg: “We sincerely wish to cooperate constructively with Pamplona and we will continue to focus on protecting the jobs our investments support while distributing the $150m of aid we have pledged for relief for the victims of the war in Ukraine.”

Pamplona, which oversees $11bn in assets, invests majorly in Europe and North America with a focus on mid-market deals.

Dutch convenience food company Signature Foods, Danish IT components distributor EET Group, and British pest control specialist Pelsis are amongst some of the major companies controlled by the firm, according to a report by Reuters.