Goldman Sachs Withdraws from Russian Business... First on Wall Street

[Image source=Reuters Yonhap News]

[Asia Economy New York=Special Correspondent Joselgina] The global boycott of Russia by multinational corporations has spread to Wall Street. Goldman Sachs announced that it will be the first major global investment bank to withdraw from the Russian market.

According to Bloomberg News and others, Goldman Sachs stated in a press release on the 10th (local time), "We are winding down our operations in Russia in accordance with regulatory and licensing requirements." This is the first time a major bank representing Wall Street has declared its withdrawal from Russian business.

The exact scale of Goldman Sachs' business and employment in Russia is not known. However, Bloomberg reported that the scale of operations in Russia is not large. As of the end of last year, Goldman Sachs' credit exposure in the Russian market was $650 million. CNBC reported that Goldman Sachs' exposure to the Russian market is $940 million, which is less than 0.1% of its total assets.

There are also expectations that the withdrawal of large financial institutions, including investment banks, from Russia will continue starting with Goldman Sachs. Some foreign media pointed out that due to Western financial sanctions against Russia, including those by the U.S., it is difficult for overseas institutions to operate in Russia. Earlier, Citigroup announced that while supporting the withdrawal of its multinational corporate clients from Russia, it is also reassessing the risks of its Russian operations. In particular, U.S. companies are evaluated to have a lower proportion of business in Russia compared to European companies, so the burden of withdrawal is not high.

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