Earlier this month, Goldman Sachs began moving some of its Moscow-based employees to Dubai, following requests by some to be relocated; but now, the bank has become the first Wall Street firm to announce it plans to close all of its operations in Russia.
Bloomberg reports that the company said Thursday in an emailed statement:
“Goldman Sachs is winding down its business in Russia in compliance with regulatory and licensing requirements. We are focused on supporting our clients across the globe in managing or closing out pre-existing obligations in the market and ensuring the well-being of our people.”
The closing of the office is more symbolic than anything else as Bloomberg notes that at the end of 2021, the firm’s total credit exposure to Russia was $650 million, most of which was tied to non-sovereign counterparties or borrowers.
Additionally, Goldman will continue to make markets in Russian corporate debt but will not take positions...
“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.”
We suspect Goldman will not be the last as Citi has already announced it is 'assessing operations' in Russia