Down Banking In Russia: JPMorgan And Goldman Sachs Shuts Down Operations In The Country

Down Banking In Russia: JP Morgan And Goldman Sachs Shuts Down Operations In The Country
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The two major United States-based Investment Banking and Financial Services Multinational Corporations, JPMorgan Chase&Co., and the Goldman Sachs Group Inc, have recently announced that they will be shutting down their business operations in Russia.

The decision made by these international banking firms to leave Russia is on account of the number of sanctions imposed on Moscow in response to the country’s actions of invading Ukraine. Banking and Financial services companies are currently finding it extremely difficult to run their businesses in Russia due to the various setbacks in the finance and banking sector at the moment. 

A statement from JPMorgan came out stating that the company has begun the process of leaving the largest country in the world, by aggressively shutting down operations and not exploring or getting into any new business ventures in the Russian Federation, going in accordance with the official instructions from governments of various nations across the globe. JPMorgan Chase employs more than a hundred people in Russia, as well as holds a few of its client’s assets in the nation. However, the MNC isn’t large enough in Russia to be listed in the country’s apex markets. 

Also Read: JPMorgan Advises Firms To Engage In Unconventional Hiring, Including Those With Criminal Backgrounds

In comparison to Goldman Sachs’ overall international business activities which amounts to around One and a Half Trillion US Dollars, the MNC’s position in the Russian Federation is very minor, with a credit exposure of just around 650 Million US Dollars for the year 2021. Adding to these numbers is the small staff size of this US-based Investment banking firm in Russia, which is just around 80 personnel. The employees of Goldman Sachs who have requested to leave Russia, will be relocated. 

As Russia prolongs its invasion of Ukraine, the number of sanctions being imposed on the nation is increasing tremendously. The unprecedented sanctions are restricting Russia from accessing the global financial system as well as cryptocurrencies (digital assets). A number of Multinational Financial Technology firms, as well as investment and banking institutions have halted their operations in Russia, such as Revolut, PayPal Holdings Inc, Remitly Inc, and many more.

Also Read: Huge Surge In VPN Use In Russia Since Ukraine Invasion To Bypass Internet Control By Govt.

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