Goldman Sachs is rushing out of Russia, becoming one of the most high-profile Wall Street corporations to draw down activities in the country.
The financial behemoth said it is “winding down” its operations in Russia and will comply with a torrent of crippling financial sanctions Western nations have levied on Russia in response to its invasion of Ukraine.
YOUTUBE TEMPORARILY SUSPENDS MONETIZATION OF CONTENT IN RUSSIA
“Goldman Sachs is winding down its business in Russia in compliance with regulatory and licensing requirements. We are focused on supporting our clients across the globe in managing or closing out pre-existing obligations in the market and ensuring the well-being of our people,” the company said in a statement to the Washington Examiner.
Goldman’s exposure to Russia comprises a minimal amount of its total portfolio. The company has about $1 billion in total exposure to Russia, according to the Wall Street Journal. For perspective, the company finished 2021 with $1.46 trillion in total assets, according to the outlet. Goldman Sachs will continue to trade corporate debt tied to the country, Bloomberg reported. The company has already moved some staff out of Moscow due to the war.
The firm’s move follows suit with a corporate exodus from Russia. A growing list of companies such as Starbucks, McDonald’s, Pepsi, Coca-Cola, WeWork, and more have all announced they are scaling down operations in Russia. Additional financial institutions are also mulling pullback. For example, Citigroup announced Wednesday it is continuing to “assess” its operations in the country and will exit its consumer banking business in Russia — which is subject to sanctions.
“We are also supporting our corporate clients in Russia, including many American and European multi-national corporations who we are helping as they suspend or unwind their business,” the company said. “With the Russian economy in the process of being disconnected from the global financial system as a consequence of the invasion, we continue to assess our operations in the country.”
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Russia has become increasingly cut off from the global economy as backlash mounts from its invasion of Ukraine. Western nations have hammered the nation with a bevy of sanctions, frozen much of Russia’s $630 billion in foreign exchange reserves, and cut off several Russian banks from using SWIFT, an international payment system. The result has been a plunging ruble and forecasts that Russia’s GDP could contract as much as 12.5% under the weight of the economic penalties.
