US private equity group Blackstone is “giving up on Russia”, highlighting how even well-connected western investors are shying away from doing business in the country.

The New York-based buyout group has been frustrated in its attempts to find deals in the country since its co-founder Stephen Schwatzman joined the international advisory board of the Russian Direct Investment Fund, a $10 billion government-backed fund, three years ago.

It hired Dmitri Kushaev, the former head of investment banking at ING in Russia and a former private equity executive, as senior adviser to assist on deals in the country.

But Blackstone, which does not have an office in Russia, has chosen not to renew the contracts of the consultants it employs in the country.

According to a person with knowledge of the matter, the move will bring to an end Blackstone’s embryonic attempts to break into Russia.

US and European sanctions against Russian individuals close to the Kremlin, as well as state-backed industrial and banking groups, have led to a freeze in Western investments in the country.

Blackstone’s decision was also prompted by the fact that it had not found suitable investment opportunities in the past three years, the person said. “In the good times, Blackstone couldn’t find anything to do and in the bad times, Blackstone can’t imagine doing anything.”