Goldman Sachs Group and JP Morgan Chase & Co will cease operations in Russia, becoming the first Wall Street banks to pull out of the region in response to its invasion of Ukraine.
Goldman Sachs has maintained a presence in Russia since 1998, however, the country makes up a comparatively small portion of its global banking business. The bank’s annual results showed its credit exposure to Russia was $650m (£480m, €570m) at the end of 2021.
“Goldman Sachs is winding down its business in Russia in compliance with regulatory and licensing requirements,” the company said in an emailed statement.
“We are focused on supporting our clients across the globe in managing or closing out pre-existing obligations in the market and ensuring the wellbeing of our people.”
Although it will be closing its office in Moscow, Bloomberg noted the company is still trading corporate debt tied to the country even if the bank itself is not making wagers on price movements.
Another giant
JP Morgan is also winding down its business in the country, the firm said in a statement. “In compliance with directives by governments around the world, we have been actively unwinding Russian business and have not been pursuing any new business in Russia.”
The bank is now currently helping global clients addressing and closing out pre-existing obligations, as well as acting as a custodian and taking care of its employees.
However, Goldman Sachs’ and JP Morgan’s move puts pressure on other Wall Street titans to follow suit. So far, Citigroup is the only other investment bank to break its silence, stating on 9 March 2022 it is assessing its operations in the region.
Citi has the largest presence of any US bank in the country, with 3,000 workers and $9.8bn of loans, assets and other holdings tied to Russia. But it is now operating “on a more limited basis given the current circumstances and obligations”.
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