Goldman Sachs Group Inc today announced it is closing its operation in Russia. This is the first major Wall Street bank to leave the country following its invasion in Ukraine, Bloomberg news reported.
The bank said:
Goldman Sachs is winding down its business in Russia in compliance with regulatory and licensing requirements. We are focused on supporting our clients across the globe in managing or closing out pre-existing obligations in the market and ensuring the well-being of our people.
The bank has had presence in Russia in the last few years but the country is not a meaningful part of its global banking business.
In its annual filing, the Goldman Sachs reports total credit exposure to Russia was $650 million. Most of it is tied to non-sovereign counterparties or borrowers.
The firm is still trading corporate debt tied to the Russia without itself making wagers on price movements.
New York-based Goldman Sachs stated:
In our role as market-maker standing between buyers and sellers, we are helping our clients reduce their risk in Russian securities which trade in the secondary market, not seeking to speculate.
Citigroup Inc. said on Wednesday that is evaluating its operations in Russia. New York-based company has the larges presence in Russia of any other US bank. Citi had previously said it is making efforts to exit its consumer business there and is now operating in a more limited capacity.
JPMorgan announced recently that Russia will be excluded on the bank’s fixed income indexes on 31 March. Payment firms Visa, Mastercard, American Express and PayPal have also suspend services in Russia.
