Following Russia’s invasion of Ukraine, Wall Street giant Goldman Sachs has officially halted its market obligations to Russia in compliance with the sanction order against the country.
Goldman Sachs and JPMorgan announced they were winding down their activities in Russia, but Goldman Sachs has become the first to exit. The Wall Street bank stated it was helping its clients manage their exposure or get out of the country.
Goldman Sachs Relocated its Moscow Staff to Dubai
Goldman Sachs had 80 staff members working from Moscow. According to a close source, after Russia invaded Ukraine, half of Goldman Sachs’s employees relocated to Dubai. The head of the Wall Street giant in Mexico remained with other staff members involved in the winding down process.
Wall Street powerhouse Goldman Sachs had credit exposure of about $650 million in Russia by 2021. Although the firm has maintained a presence in Russia over the past year, the region does not make up a significant portion of its global banking business.
Most of Goldman Sachs’s credit exposure in Russia is tied to non-sovereign counterparties or borrowers. A representative to the Wall Street powerhouse stated that Goldman Sachs would continue trading corporate debt tied to Russia despite the announcement. However, the bank would not be making any wagers on price movements.
Other Firms Pulling Out of Russia
Apart from Wall Street banks Goldman Sachs and JP Morgan Chase, other major firms such as PayPal, Visa, and MasterCard also announced they were exiting the Russian market. Western Union also announced it would suspend its operations in Russia and Belarus as it stands with the world in condemning the unprovoked and unjustified invasion of Ukraine.
Compared to Goldman Sachs, Citigroup Inc. has a bigger exposure of around $10 million in Russia. While it has not declared an exit, the bank stated it was assessing its future in Russia.
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