“Goldman Sachs is terminating its business in Russia in compliance with regulatory and licensing requirements,” a Goldman Sachs spokesperson told CNN Thursday.
JPMorgan Chase, America’s largest bank, has similarly announced that it is “actively dismantling” its Russian business and is now pursuing any new business in the country. JP Morgan (JPM)
He cited “compliance with the directives of governments around the world”.
The decision of two of the most influential companies on Wall Street to exit Russia deals another financial blow to Moscow. I already mentioned the news of Goldman’s exit from Russia Bloomberg
“We are focused on supporting our customers around the world in managing or ending pre-existing commitments in the marketplace and ensuring the well-being of our employees,” said a Goldman Sachs spokesperson.
Goldman Sachs did not detail the cost of its exit from Russia, although it is unlikely to be significant relative to the bank’s size.
As of the end of last year, Goldman Sachs Russia’s total credit exposure is $650 million
In filings, the bank said late last month. After accounting for collateral and other measures, Goldman’s net credit exposure was just $293 million at the end of last year. Goldman Sachs said its total market exposure to Russia amounted to $414 million at the end of last year.
Goldman Sachs (p)
It employs about 80 people in Russia, a person familiar with the matter told CNN.
JPMorgan said its current activities in Russia are “limited” and include helping global clients handle and close existing liabilities, helping clients manage risks related to Russia, and acting as a trustee for clients and caring for employees.
Today, Wednesday, it continues its previously announced efforts to exit its consumer business in Russia. Citi said it operates those consumer businesses “on a more limited basis given current conditions and obligations.”
Citi said it is supporting corporate clients in Russia, including many US and European multinationals, as it suspends or breaks up business there.