Despite what’s happening in Ukraine, it was not the responsibility of businesses to engage in politically-motivated exits, according to Goldman Sachs CEO David Solomon, as his bank decided to leave the country following a multitude of international corporations that have forfeited their operations in Russia.
“I don’t think businesses are supposed to decide how global trade works in the world. Government sets policy and then businesses follow that policy. I happen to agree very strongly with the policy,” Solomon said.
“What’s going on in Ukraine is absolutely horrible. I think the actions taken are reasonable and powerful actions. But you ask, ‘are we doing a good job, ostracizing Russia?’ That’s not our job. And by us, I mean the financial industry broadly.”
Goldman Sachs is said to have had a total Russian exposure of $940 million by the end of 2021, including $650 million in credit, accounting for less than 10 basis points of the bank’s total assets, as per analysts from Bank of America.
In early March, Goldman Sachs revealed that it scaled down Russian exposure in its GQG Partners international equity fund to around $222 million, down from more than $1.7 billion in September 2021. At the end of February, the fund only had 0.99 percent exposure in Russia.
A few hours after Goldman Sachs announced its exit from Russia, JPMorgan Chase also declared that it was moving out. In its most recent filings, Russia was not listed in the top 20 countries where the company had the greatest financial exposure. JPMorgan Chase employs about 160 people in Moscow.
Deutsche Bank, with $3.18 billion in credit-risk exposure to Russia and Ukraine, said that it had scaled down its exposure in Russia in recent weeks.