(New York) Major banks Goldman Sachs and JPMorgan Chase announced on Thursday that they were shedding their Russian operations, becoming the first major Wall Street institutions to distance themselves from Moscow after the invasion of Ukraine.
Updated yesterday at 5:07 p.m.
They thus join the exodus of the few American multinationals still present in the country, Disney and Kimberly-Clark announcing Thursday to limit their activities in Russia after Apple, ExxonMobil or McDonald’s.
On the financial institution side, Goldman Sachs was the first to announce its intention in the morning, with a spokeswoman indicating in a message that the investment bank would “terminate its activities in Russia in accordance with regulatory and licensing requirements. “.
“We are focused on supporting our clients around the world in managing or closing pre-existing obligations in the market and ensuring the well-being of our associates,” she added.
According to its latest annual report, the firm’s exposure to Russia at the end of 2021 amounted to $650 million, the vast majority of which was related to claims from private actors and borrowers. Goldman Sachs does not give more details on the number of employees in the country.
PHOTO MIKE SEGAR, REUTERS ARCHIVES
JPMorgan Chase followed a few hours later.
“As directed by governments around the world, we are in the process of divesting from our business in Russia and are not seeking new business” in the country, a spokeswoman said.
The current activities of the largest US bank in terms of assets are “limited”, she said. In particular, JPMorgan helps its multinational clients to settle and liquidate their obligations and manage their risks related to Russia, and takes care of its employees on site.
Citigroup, which had a total exposure of 9.8 billion dollars to Russia at the end of December, indicated for its part on Wednesday that it was “evaluating (its) operations in the country”.
The bank announced last year that it was seeking to divest its retail banking operations in Russia.
While waiting to find a buyer or decide to close this activity, “we operate this business on a more limited basis given the current circumstances and obligations,” said Edward Skyler, head of public affairs, in a message.
“We also support our customers in Russia, including many American and European multinationals whom we help to suspend or unwind their activities,” he added.
In total, more than 330 major companies with a significant presence in Russia have announced their withdrawal, according to an inventory maintained by a team at Yale University.
Disney, which had already announced in early March the suspension of the release of its films in cinemas in Russia, indicated Thursday that it was temporarily ceasing all its activities there, from product licenses to cruises and the magazine National Geographic.
The Kimberly-Clark hygiene products group, for its part, indicated that it was suspending all advertising and investment in its factory in Stupino, but that it would continue to sell its products, some of which are essential such as baby diapers or sanitary napkins.