VK said in its annual report for 2022, released earlier this week, that it sold Virtus.pro in the fourth quarter for 174 million rubles (about $2.8 million at the time of the announcement).
The change in ownership of Virtus.pro was revealed in September 2022, when Armenian businessman Aram Karamanukyan was introduced as the company’s new CEO and investor. Apart from his previous expertise in the construction and hotel industries, little little was known about his background.
VK announced the sum it earned for the sale of the esports group it acquired.
In an exclusive interview with Dexerto days after the announcement, Mr. Karamanukyan confirmed that the transaction had been “made on market terms,” refuting the notion that it was a ploy to circumvent the sanctions imposed on Virtus.pro by numerous tournament organizers since the beginning of Russia’s invasion of Ukraine.
Tournament organizers targeted Virtus.pro owing to potential links between its parent firm, ESforce, and the Russian government. In 2018, VK, then known as Mail.Ru Group Ltd, bought ESforce. Since December 2021, the Russian state-run insurance Sogaz has held a majority share in VK, which was listed on the European Union’s February 28 sanctions list against Russia in response to its invasion of Ukraine.
Because of ESforce’s links to the Kremlin, Virtus.pro’s CS:GO squad has been forced to participate as “Outsiders” for over a year. The scenario has been different for the Virtus.pro Dota 2 team. After Mr. Karamanukyan joined the organization, the squad has been permitted to represent Virtus.pro in all contests. Before, they had to compete as “Outsiders.”
When Nikolai Petrossian, a former ESforce leader, succeeded Mr. Karamanukyan as the organization’s CEO in December 2022, the integrity of the Virtus.pro selling process has been called into doubt. Many viewed this as evidence that ESforce and Virtus.pro are still connected.
Future prospects for Virtus.pro’s squads
It is currently unknown whether ESL and BLAST will allow Outsiders to compete as Virtus.pro in their respective CS:GO competitions. In September, Dexerto disclosed that both event organizers were investigating the leadership changes occurring inside the Russian organization.
ESL informed Dexerto that the evaluation process is still ongoing after being contacted. “We have been analyzing the recent changes to Virtus.pro’s structure and ownership and are in the process of concluding this evaluation. If any announcements are forthcoming, they will be disclosed in due time.”
When reached by Dexerto, BLAST refused to comment.
Under the moniker Outsiders, Virtus.pro’s CS:GO team is presently competing in ESL Pro League Season 17 in Malta. By finishing second in Group A, the squad advanced to the tournament’s Round of 12.