JPMorgan and Goldman Sachs to Leave Russia Amid the Invasion of Ukraine by Russia

Goldman Sachs and JPMorgan announced that they were unwinding their Russian businesses, becoming the first major U.S. banks to exit following Russia's invasion of Ukraine and putting pressure on rivals to follow.

Operating in Russia has become harder for Western financial institutions due to international sanctions against that country. While European banks are the most highly exposed to Russia, U.S. banks still have significant exposure, totaling $14.7 billion, according to Bank of International Settlements data.

"Goldman Sachs is winding down its business in Russia in compliance with regulatory and licensing requirements,"Goldman Sachs said.

It's said that Goldman will wind down the operations rather than exit them immediately and any losses would be "immater". In the aftermath of Russia's invasion last month of Ukraine, around half of Goldman Sachs employees in Moscow have moved or are moving to Dubai.

JPM 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."

JPMorgan said its current activities in Russia are "limited." They include "helping global clients address and close out pre-existing obligations; managing their Russian-related risk; acting as a custodian to clients; and taking care of employees."

Source: Reuters