Following weeks of heavy sanctions against Russia, banks have begun unwinding their operations.
After Citigroup announced Wednesday it was reviewing its Russia operations, Goldman Sachs and JPMorgan Chase announced they would both be exiting the country.
Goldman Sachs became the first U.S. bank to announce its departure from Russia, on Thursday, March 10. As noted in Global Banking & Finance, since Russia invaded Ukraine, “Around half of Goldman Sachs employees in Moscow have moved or are moving to Dubai. The bank had around 80 staff members in Moscow.” According to Goldman Sachs’ annual report, the bank had a credit exposure to Russia of $650 million.
According to the Wall Street Journal, JPMorgan said “its current activities in Russia have been limited and focused on helping global corporate clients with their own exit plans and risks and the storing of assets, as well as humanitarian aid and employee assistance.” While JPMorgan is the largest U.S. bank, it has a relatively small presence in Russia, mostly in investment banking operations and banking services for clients in Russia.
On Friday, Bloomberg reported that Japan’s top lenders, including the banking unit of Mitsubishi UFJ Financial Group Inc., “Are pulling their Japanese staff out of Russia due to safety concerns following its invasion of Ukraine.”
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