Goldman Sachs Becomes the First Major Wall Street Bank to Leave Russia

Goldman Sachs has confirmed it is leaving the Russian market, becoming the first major Wall Street bank to do so. The bank will shutter its services in Russia as it still facilitates trades in debts of Russian securities. Additionally, the Ruble also continues to perform dismally against BTC and the USD.

Goldman Sachs to Shutter Russian Services

US bank Goldman Sachs has confirmed leaving the Russian market following the sanctions on the country. Goldman is the first major international investment bank after other companies to exit Russia. The bank communicated the development through an E-mail yesterday.

“Goldman Sachs is winding down its business in Russia in compliance with regulatory and licensing requirements,” said a bank spokeswoman. “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 bank is making the move after the third week of Putin’s attempt to overthrow the Ukrainian government. It follows other major companies like Apple, Google, Visa, and Mastercard, the first to leave. Retail brands like McDonald’s and Starbucks have also left the Russian market.

Financial Institutions Leave the Russian Market Amid Sanctions

While Russia is a large country geographically, its economy is relatively smaller. However, due to the influence of its former glory state, international companies operate there. It harbors large banking institutions like Goldman and JPMorgan & Chase. 

Its recent attack on Ukraine has hit back on it as these institutions are leaving or minimizing their services there. Last Year, Citibank, which had the largest exposure at $9.8B, revealed plans to sell their Russian operations. After the attack, the bank confirmed that it would continue serving but limitedly.

Meanwhile, other banks like JPMorgan Chase and Morgan Stanley do not disclose their Russian exposure during filings. According to analysts, this move suggests that their services may be limited.

Ruble Performs Dismally Against BTC and the US Dollar

The Ruble continues to trail behind the USD and BTC largely after the sanctions from the West. Today, a trader has to exchange over 130 Rubles for USD. That rate is too high compared to the 80 units required for a dollar before the invasion. 

Bitcoin is also outdoing the Rubble greatly. It has eclipsed its market capitalization and set a new 9-month high in Ruble-denominated trading volume. Today, the Ruble and BTC have almost similar values to last November. However, BTC was in an ATH last November; it now trades at over 40% lower.

The matters are only getting worse for the Ruble as Russians occasionally shift their reserves to crypto. However, the EU and other authorities are working hard to install measures to increase the complexity of circumventing the sanctions even through crypto. It remains to be seen how wide and deep the effects of the sanctions on the Rublewill affect its value against BTC and the US dollar.