Goldman Sachs to Exit Russia in Wall Street's First Pullout

While Goldman is the first Wall Street firm to announce a departure, Citigroup Inc. said Wednesday that it’s assessing operations in the country. It previously announced efforts to exit its consumer business there, and is now operating it “on a more limited basis given current circumstances and obligations,” Edward Skyler, executive vice president of global public affairs, said in a statement.

Potential suitors for Citigroup’s retail operation in Russia are now subject to sanctions imposed by the U.S. government, adding another obstacle to the planned sale. Citigroup’s roughly 3,000 workers there give it by far the largest presence of any major U.S. bank in the country.

It said last month it had about $9.8 billion of loans, assets and other exposure tied to Russia, local companies and their counterparties, as well as to the Bank of Russia, as of the end of 2021.

JPMorgan Chase & Co., the biggest U.S. bank by assets, hasn’t commented on its Russia exposure or on plans for its operations there.

European Banks

The turmoil caused by the war has also led European lenders to examine their exposure to the region after investors sent their stocks tanking at the onset of the conflict.

Deutsche Bank AG has pointed to the potential closing of its information-technology hub in Russia as a risk, though the company said it’s “well contained.” The bank has more than 1,300 IT staffers in Moscow and St. Petersburg, and said the invasion is forcing it to consider options for the business and its employees.
BNP Paribas SA shelved an investor day planned for next week because of the war, and also said it suspended financing of new projects in Russia, after years of scaling back its operations in the country.
Credit Agricole SA and Societe Generale SA have also paused some new financing linked to Russia amid fears of widening sanctions.
Raiffeisen Bank International, the European lender most exposed to Russia and Ukraine, has halted the payment of its dividend as it assesses the impact of economic sanctions.

(Image: Bloomberg)