JPMorgan and Goldman Sachs are two of the American investment banks that have decided to wind down their Russian operations amid the invasion of Ukraine by Russia. Announced on Thursday, these two have become the first two major US banks to exit Russia.

Goldman Sachs is winding down its business in Russia in  compliance  with regulatory and licensing requirements,” Goldman Sachs stated.

“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,” said JPMorgan.

Both the banks decided to wind down their Russia operations, rather than making a prompt exit that might have resulted in severe losses. Additionally, this move will force other foreign financial institutions to exit the Russian markets.

All the US banks combined have $14.7 billion exposure in Russia, according to Bank of International Settlements data. Out of that, Goldman Sachs has a credit exposure of $650 million. Though JPMorgan did not break out its numbers, it remains relatively small with around 160 employees in the country.

“Current activities are limited, including helping global clients address and closeout pre-existing  obligations  ; managing their Russia-related risk; acting as a custodian to our clients; and taking care of our employees,” JPMorgan added.

Goldman Sachs, which has 80 staff members in Moscow, had half of its staff relocated to Dubai after the initiation of the Ukraine invasion, Reuters reported citing anonymous sources. But, the Russian head of the bank still remains in the country.

Many Are Staying

However, Citigroup, which is exposed to $10 billion in Russian credit, continues to operate in the country with its 3,000 employees. Moreover, the bank’s Chief Financial Officer warned that the bank might lose half of its Russian exposure in case of a 'severe stress scenario'.

But, the exposure of European banks in Russia is much more when compared to their American counterparts. Deutsche Bank, Credit Suisse, UBS, UniCredit and others have disclosed their Russian exposure but are continuing their operations. Only Austria's Raiffeisen Bank International is reportedly considering leaving Russia.

JPMorgan and Goldman Sachs are two of the American investment banks that have decided to wind down their Russian operations amid the invasion of Ukraine by Russia. Announced on Thursday, these two have become the first two major US banks to exit Russia.

Goldman Sachs is winding down its business in Russia in  compliance  with regulatory and licensing requirements,” Goldman Sachs stated.

“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,” said JPMorgan.

Both the banks decided to wind down their Russia operations, rather than making a prompt exit that might have resulted in severe losses. Additionally, this move will force other foreign financial institutions to exit the Russian markets.

All the US banks combined have $14.7 billion exposure in Russia, according to Bank of International Settlements data. Out of that, Goldman Sachs has a credit exposure of $650 million. Though JPMorgan did not break out its numbers, it remains relatively small with around 160 employees in the country.

“Current activities are limited, including helping global clients address and closeout pre-existing  obligations  ; managing their Russia-related risk; acting as a custodian to our clients; and taking care of our employees,” JPMorgan added.

Goldman Sachs, which has 80 staff members in Moscow, had half of its staff relocated to Dubai after the initiation of the Ukraine invasion, Reuters reported citing anonymous sources. But, the Russian head of the bank still remains in the country.

Many Are Staying

However, Citigroup, which is exposed to $10 billion in Russian credit, continues to operate in the country with its 3,000 employees. Moreover, the bank’s Chief Financial Officer warned that the bank might lose half of its Russian exposure in case of a 'severe stress scenario'.

But, the exposure of European banks in Russia is much more when compared to their American counterparts. Deutsche Bank, Credit Suisse, UBS, UniCredit and others have disclosed their Russian exposure but are continuing their operations. Only Austria's Raiffeisen Bank International is reportedly considering leaving Russia.