Goldman Sachs and JPMorgan Chase are closing their businesses in Russia, with Wall Street banks following Western companies in retreat due to Moscow’s invasion of Ukraine.
Hundreds of concerns already Reduce activity in Russia Includes technology groups, food suppliers, accounting firms and energy producers.
Goldman on Thursday unveiled plans to retire from the state. JPMorgan, the largest U.S. bank by assets, arrived hours later. They both said they were following government guidelines.
“Goldman Sachs is terminating its business in Russia in accordance with regulatory and licensing requirements,” the bank said in a statement.
“We focus on supporting our customers around the world in managing or closing existing commitments in the market and ensuring the well-being of our people.”
Goldman has had a presence in Russia since 1998. Despite its decades there, the state accounts for a small portion of Goldman’s assets and liabilities of $ 2.8 billion, when the bank revealed last month that its exposure to credit losses in Russia was $ 650 million. The total exposure in the market was $ 414 million as of December.
Goldman of New York, which employs close to 100 people in Russia where it offered investment banking services, has not given a time frame for when it will complete the liquidation.
J.P. Morgan said: “In accordance with the guidelines of governments around the world, we have actively started the Russian business and have not engaged in any new business in Russia.”
The bank added, “Current operations are limited, including helping global customers deal with and close existing commitments; managing risk related to Russia; acting as a guardian for our customers; and caring for our employees.”
Any departure from the country will not be an overnight event, given that the banks are regulated entities in Russia. The dismantling of banking activity in the country can take up to a year, according to experts.
Prior to the announcement, some of Goldman’s staff in Russia had already decided to move to Dubai, according to a person familiar with the matter.
Even with the respite, Goldman will continue to offer market-making services to buyers and sellers to facilitate trade in debts related to Russian entities.
The competing bank Citigroup is in the process of Trying to disconnect Its Russian retail banking business, an effort that was in full swing before the start of the war in Ukraine. It has not revealed any plans to exit its corporate bank in the country, though City said on Wednesday that it continues to evaluate its operations in Russia.
Citi said last month that it has exposure of nearly $ 10 billion to Russia through loans, government debt and other assets, some of which are held through its retail bank.
Other large US banks have not yet detailed their exposures, but in Europe, Credit Suisse detailed on Thursday Net exposure of SFr848mn ($ 914 million).
Swiss bank rival UBS said its direct risk exposure to Russia was $ 634 million at the end of 2021.
The Austrian company Raiffeisen reported direct exposure to Russia of 22.9 billion euros, while the French Société Générale and Crédit Agricole reported exposure of 18.6 billion euros and 4.9 billion euros, respectively. On Wednesday, UniCredit warned that it was facing losses of about 7 billion euros in “An extreme scenario“According to which all its Russian business has been deleted.
Goldman Sachs and JPMorgan withdraw from Russia as Wall Street joins exodus Source link Goldman Sachs and JPMorgan withdraw from Russia as Wall Street joins exodus