Russia's unilateral aggression in Ukraine has drawn the ire of people from all quarters. Condemning the action, Western nations have imposed sanctions against Russia, and several high-profile companies have ceased operating in the country in protest.
Big banks were beginning to follow suit Thursday, with Goldman Sachs Group, Inc. (NYSE:GS) and JPMorgan Chase & Co (NYSE:JPM) announcing withdrawal from the Russian market.
What Happened: Goldman said Thursday it would wind down its business in Russia "in compliance with regulatory and licensing agreement," according to multiple reports citing an email from the financial services giant.
The company further said it would support its clients in managing or closing out pre-existing obligations in Russia. Goldman's total credit exposure to Russia amounts to $650 million, with much of that to non-sovereign counterparties or borrowers, the company said in its 10-K filed with the SEC.
Hours later, JPMorgan made a similar move.
“In compliance with directives by governments around the world, we have been actively unwinding Russian business and have not been pursuing any new business in Russia,” company spokeswoman Tasha Pelio told CNBC in an email.
The bank said it has less than 200 employees in Russia.
Why It's Important: Earlier this month, Goldman shared on Twitter a statement from its CEO David Solomon, expressing solidarity with the people of Ukraine.
Our Chairman & CEO David Solomon on Ukraine: pic.twitter.com/ErtJVqLZ3X
— Goldman Sachs (@GoldmanSachs) March 1, 2022
"In our role as market-maker standing between buyers and sellers, we are helping our clients reduce their risk in Russian securities which trade in the secondary market, not seeking to speculate," the bank said in a statement, according to a Bloomberg report.
Related Link: The Companies Pulling Their Business From Russia After The Ukraine Invasion
Goldman's announcement comes a day after U.S. Sen. Elizabeth Warren took to Twitter criticizing big Wall Street banks and accusing them of using the adversity as an opportunity to get richer.
Giant Wall Street banks like JPMorgan and Goldman Sachs never miss out on an opportunity to get richer—even if it means capitalizing on Russia's invasion of Ukraine and undermining sanctions placed on Russian businesses. https://t.co/VcfvsPJ9sn
— Elizabeth Warren (@ewarren) March 9, 2022
What Will Citi, Deutsche Bank Do? Goldman's peer Citigroup Holdings, Inc. (NYSE:C) said it is continuing to assess its operations in Russia. While expressing sympathies for the people of Ukraine, Citi said it is continuing with its previously-announced efforts to exit its consumer banking business in Russia, Edward Skyler, EVP, Global Public Affairs at Citi, said in a blog post on Wednesday.
The bank announced a year ago its intention to exit 13 retail markets, including Russia, in order to focus on the more lucrative non-U.S. consumer banking operations.
Citi disclosed in its latest 10-K filing that its net investment in Russia was about $1 billion as of Dec. 31, 2021, while total third-party exposure was about $8.2 billion.
German financial services giant Deutsche Bank (NYSE:DB), meanwhile, said it is impractical to shutter operations in Russia, as it bound to serve its clients that still operate in the country, CNBC reported, citing the bank's CFO James von Moltke.
Related Link: 5 Companies That Stand To Lose Due To Operations In Russia, Ukraine
