Main image: One of the companies, RZD Capital, was used to raise billions of dollars for Russian Railways. Photo: Getty
In Ireland, authorities have forcibly liquidated companies that for many years served as financial hubs for channeling billions of dollars to Russian banks and state-owned corporations, the Independent reports.
This week, the entities were removed from the companies register due to a lack of directors: Irish managers resigned from their boards shortly after Russia launched its war against Ukraine.
Among the closed companies were several closely linked to major Russian banks. VTB Eurasia was established to handle transactions for VTB Bank and issued $2.25 billion worth of bonds in 2012. Transregional Capital was involved in lending to Transcapitalbank, which was placed on the OFAC sanctions list in 2022 for helping Russia bypass restrictions. Sovcom Capital issued bonds for Sovcombank: as of the end of 2020, $600 million worth of bonds were in circulation, but in October 2024, the listing of $300 million bonds maturing in 2030 was canceled. The registry also removed OIM ABS, a subsidiary of Qiwi Bank, which had issued bonds in euros and rubles. Qiwi Bank itself lost its license in 2024 by decision of the Russian Central Bank.
The liquidation also affected companies tied to major Russian state infrastructure enterprises. One of them was RZD Capital, established in 2008 to raise funds for Russian Railways (RZD). By 2020, it had issued $6.7 billion worth of bonds, some of which were due to mature by 2031. However, finding new directors for the company proved impossible due to sanctions-related risks.
VEB also lost its Irish subsidiary. Founded in 2010 in Dublin, VEB Finance raised around $30 billion through bond issuance. By the end of 2020, its assets included $3.7 billion in outstanding loans.
A separate industry has emerged around winding down Russian companies. For example, the liquidators of GTLK Europe and GTLK Europe Capital, subsidiaries of the Russian state leasing company GTLK, earned $47.6 million in fees over the past two years alone. According to the Irish Independent, foreign consultants could make tens of millions more from these liquidation procedures in the future.
