US banks Goldman Sachs and JP Morgan announced on Thursday (10) the suspension of their activities in Russia, becoming the first major US financial institutions to stop business in the European country in response to the invasion of Ukraine.
“Goldman Sachs is closing its business in Russia in compliance with regulatory and licensing requirements. We are focused on supporting our clients around the world in managing or closing pre-existing market obligations and ensuring the well-being of our personnel”, says a statement released by the bank.
“In line with guidance from governments around the world, we are actively disposing of business in Russia and are not seeking new operations in the country,” reports JP Morgan.
Doing business in Russia has become an increasingly challenging task for Western banks amid international sanctions against the government of Vladimir Putin.
Although European banks are the most exposed to Russia, US banks still have significant exposure to the region, which totals around US$14.7 billion, according to BIS (Bank of International Settlements) data. ).
In its 2021 annual report, Goldman Sachs reported having a credit exposure close to $650 million in Russia.
With approximately US$ 10 billion (R$ 54.4 billion) in business in the country, Citi is the American financial conglomerate with the greatest exposure to Russia.
With the announcement, Goldman Sachs and JP Morgan join a series of multinational companies that over the past few days had already taken the same decision to stop their activities on Russian soil, in retaliation for attacks on Ukrainian cities.
Companies like Shell and BP have abandoned billion-dollar deals in Russia, while Volvo, Apple and transport giants MSC and Maersk have suspended shipments.
The Inditex group, which controls the clothing Zara, also paralyzed the operations of its 502 stores in the country, as well as its main competitor, H&M.
Payment companies Visa, Mastercard, American Express and PayPal had also announced the suspension of their activities in Russia.
European bank Credit Suisse released a statement on Thursday in which it condemns Russia’s attacks on Ukrainian cities and population and reports that it had a credit exposure of approximately 848 million Swiss francs (R$4.6 billion) in the country. in December 2021.
“We are deeply saddened by the Russian invasion of Ukraine. We condemn this invasion and the serious violations of international law. The instability these events are creating for societies and countries around the world will have far-reaching consequences,” said Thomas Gottstein, CEO of Credit Suisse, in note.
“We believe that the bank’s exposure to Russia is well managed, with appropriate systems in place to deal with the associated risks,” said the executive.
The Swiss bank also stressed that it is premature to make estimates about the potential impacts of the war on the global economy, markets and customers’ risk appetite.
“However, in the short term, the increase in trading operations and portfolio protection should be offset by a reduction in capital market issuances due to increased volatility.”
Credit Suisse also says it has an office in Moscow where 125 employees work in the areas of wealth management and investment banking.
with Reuters
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