Goldman Sachs is exiting Russia, becoming the first major Wall Street bank to announce plans to do so after the invasion of Ukraine.
“Goldman Sachs is winding down its business in Russia in compliance with regulatory and licensing requirements,” a Goldman Sachs spokesperson told CNN on Thursday.
JPMorgan (JPM) Chase, America’s largest bank, similarly announced it is “actively unwinding” its Russian business and now pursuing any new business in the country. JPMorgan (JPM) cited “compliance with directives by governments around the world.”
The decision by two of Wall Street’s most influential firms to get out of Russia deals another financial blow to Moscow. News of Goldman’s exit from Russia was previously reported by Bloomberg.
“We are focused on supporting our clients across the globe in managing or closing out pre-existing obligations in the market and ensuring the wellbeing of our people,” the Goldman Sachs spokesperson said.
Goldman Sachs did not detail the cost of its exit from Russia, though it’s not likely to be large relative to the size of the bank.
As of the end of last year, Goldman Sachs had total credit exposure to Russia of $650 million, the bank said late last month in filings. After accounting for collateral and other measures, Goldman’s net credit exposure was just $293 million at the end of last year. Goldman Sachs said its total market exposure to Russia as of the end of last year stood at $414 million.
Goldman Sachs (GS) employs about 80 people in Russia, a person familiar with the matter told CNN.
JPMorgan said its current activities in Russia are “limited” and include helping global clients address and close out pre-existing obligations, helping clients manage Russia-related risks, acting as a custodian to clients and taking care of employees.
Citigroup confirmed on Wednesday that it is continuing its previously announced efforts to exit its consumer business in Russia. Citi said it is operating that consumer business “on a more limited basis given current circumstances and obligations.”
Citi said it is supporting corporate clients in Russia, including many American and European multinational corporations, as they suspend or unwind their business there.