New York-based banking giant Goldman Sachs has restructured its asset in Russia – following criticism for continuing to serve customers in the country after promising to pull out nearly a year ago.
The RBC Daily reported the news on Monday, citing two investment market sources, in a move is the most pronounced yet from the bank in distancing itself from the Putin-led nation.
Goldman, in March, had said it had been winding down its business in Russia amid its invasion of Ukraine, and in November said it had reduced its credit exposure to the country.
The recent maneuver from the firm could now see the bank finally sever ties with the country completely – though foreign lenders will reportedly still need special permission from President Putin to recover their stakes.
Goldman Sachs said it was winding down its operations in Russia in line with regulatory requirements as well as sanctions
Goldman Sachs -, headed by CEO David Solomon, declined to comment. The company – which has faced criticism for continuing operations in the country – recently laid off 3,200 workers after a harsh 2022
Goldman Sachs – which is headed by CEO David Solomon – declined to comment.
The longwinded maneuver from the bank comes as Moscow’s invasion has prompted many companies to distance themselves from business with Russia.
Several businesses such as McDonald’s ceased operations in the country completely, amid a swathe of Western sanctions.
Among them have been several prominent US banks, whom have cut exposure to Russia since it sent tens of thousands of troops into Ukraine last year.
The New York based bank and several other companies have faced criticism for continuing to serve customers in the country
Now nearing a year since the invasion started, Goldman, as well as London-based HSBC, were among the few standouts still operating in Russia.
Other offenders include vaccine distributor Johnson & Johnson and consumers giant Procter & Gamble.
One of RBC’s sources said Goldman’s asset portfolio, which includes minority stakes in recruitment firm Headhunter and real estate database Cian, had been sold to local management.
Another offender is UK-based bank HSBC. The firm in July said it had agreed to sell its business in Russia – but MRA said ‘a promise is just a promise until it is honored’
Goldman had said it was winding down its operations in Russia in line with regulatory requirements as well as sanctions.
An August 5 decree, signed by Putin, banned investors from so-called unfriendly countries from selling shares in key energy projects and banks.
That decree, now in force until the end of 2023, gave Putin the power to issue special waivers in certain cases for deals to go ahead.
The invasion of Ukraine marked a sea change in the release of confidential intelligence to the public, the head of GCHQ said last month.
Both Washington and London took the unusual step of revealing Russia’s plans ahead of its attack in February, to deter Vladimir Putin and counter false narratives, Jeremy Fleming told BBC while guest editing the Today show.
More than 100 firms have now abandoned Russia or announced plans to do so, including Adidas, Tesco, Zara owner Inditex, Estee Lauder, Spotify, Ikea, Disney and H&M.
Major global brands, including PepsiCo Inc, have been pressured to withdraw from Russia by consumers and investors such as the New York state’s pension fund.
Pepsi, one of the first Western products allowed to be sold in the former Soviet Union, is no longer sold in the county, though Pepsi Co. continues the sale of essential items such as baby formula.
Atlanta-based Coca-Cola, which had a huge presence in Russia through a licensed partner that operates 10 bottling plants there, also ceased business in the country.
Starbucks also closed its 130 locations in Russia, but continues to pay its 2,000 employees there. All the shuttered cafes are run by licensed owner-operators, rather than by the Seattle-based coffee giant itself.
Meanwhile, McDonald’s closed all of its 850 locations, but also continued paying its 62,000 employees there ‘who have poured their heart and soul into our McDonald’s brand.’ Russian businessman Alexander Govor has since taken over all of the restaurants owned by McDonald’s under a new brand. The same has been done to Starbucks.
None of the brands who have pulled out have given any indication as to when they may resume business.
McDonald’s, like this one in Moscow, across Russia and Ukraine account for 9 percent of McDonald’s annual revenue. Now they are closing
Coca-Cola, operates 10 bottling plants in Russia through a licensed partner, said in a statement that it is suspending all business there. Pictured: Plant in Samara, Russia
Source: | This article originally belongs to Dailymail.co.uk