A sign is displayed in the reception area of Goldman Sachs in Sydney, Australia.
David Gray | Reuters
Goldman Sachs said it was leaving Russia, becoming the first major global investment bank to do so after it invaded neighboring Ukraine last month.
The bank said Thursday in an emailed statement that it was working to cease operations in Russia.
A spokesman for the bank said: “Goldman Sachs is severing its business in Russia to comply with licensing and regulatory requirements. “We are focused on assisting our customers globally in managing or fulfilling pre-existing obligations in the marketplace and ensuring people’s lives.”
The move is the latest sign of Russia’s growing isolation in the third week of President Vladimir Putin’s campaign to topple the Ukrainian government. Tech companies include Apple and Google and payment companies like Passport and Master Card were among the first to withdraw from Russia, followed by retail brands including McDonald’s and Starbucks.
Most of the major US banks have modest operations in Russia, a geographically large country with a relatively small economy. Citigroup has the largest exposure through the end of 2021 at $9.8 billion, according to the filing. Goldman is estimated to be worth $940 million, including $650 million in credit, or 10 basis points less of its total assets, according to for Bank of America analysts.
Meanwhile, banks include JPMorgan ChaseBank of America and Morgan Stanley Analysts, who did not disclose their contact with Russia in their filings, indicated that there were limited transactions with the country.
Citigroup revealed plans sold its operations in Russia last year as part of a strategic overhaul, before the conflict began. But the war has forced it to run consumer banking operations there on a “more restrictive” basis and may force Citigroup to simply shutter business.
While New York-based Goldman is closing its operations in Russia, it is still facilitating deals in debt securities tied to the country, according to Bloomberg, which first reported on the move. Bank.
“As a market maker that stands between buyers and sellers, we are helping our clients to minimize the risk of Russian securities traded on the secondary market, not seeking to speculate.” bank said.
With reporting from CNBC’s Jim Forkin.
