Russian President Vladimir Putin has allowed Softeks to acquire 100% of Western Union's Russian entity — NKO "Western Union DP Vostok". Special permission was required due to existing restrictions on transactions involving shares of foreign owners in a number of Russian financial organizations.
Western Union ceased operations in Russia in March 2022. At the same time, its Russian entity was excluded from the register of payment system operators. Before its departure, the American company was one of the largest players in the cross-border money transfer market.
Now Softeks will be able to buy out all shares of the NKO that belonged to Western Union Financial Services Eastern Europe LLC. The Russian legal entity itself remained after the international system ceased operations.
Permission for a change of ownership does not mean that transfers under the Western Union brand will automatically resume in Russia. The document specifically concerns the transaction with the Russian company, and the future operating model of the NKO will depend on the new owner and financial regulation requirements.
Four years after Western Union's departure from the Russian market, its remaining structure in the country may finally come under the control of a Russian owner.