Banking giants Goldman Sachs and JPMorgan Chase have become the first major US banks to announce they are closing their business in Russia due to Russian military operations in Ukraine, Reuters has reported.
According to the press release shared by Goldman Sachs:
"Goldman Sachs is winding down its business in Russia in compliance with regulatory and licensing requirements."
The bank has reported it will be suspending its operations "immediately" and that losses would be "immaterial." Goldman's total credit exposure in Russia was $650 million at the end of 2021 and most of it was held by non-government counterparties or borrowers.
The bank has relocated about half of the Moscow office's employees to Dubai.
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JPMorgan, the largest US bank by assets, has said:
"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 received $32.8 million in revenue from Russian operations last year, a figure second only to MTB Capital. Goldman Sachs earned $19.5 million, Morgan Stanley $27.3 million and Citigroup $19.5 million.
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