Goldman Sachs restructures assets in Russia, after vowing to withdraw from the country 10 months ago

New York-based banking giant Goldman Sachs has restructured its Russian asset, following criticism for continuing to serve clients in the country after vowing to pull out nearly a year ago.

The RBC Daily reported the news on Monday, citing two investment market sources, in a move that is the bank’s most pronounced yet to distance itself from the Putin-led nation.

Goldman, in March, had said it had been winding down its business in Russia amid the invasion of Ukraine, and in November it said it had reduced its credit exposure to the country.

The firm’s recent move could now see the bank finally sever ties with the country altogether, though foreign lenders will reportedly still need special permission from President Putin to reclaim their holdings.

Goldman Sachs, which is led by Chief Executive David Solomon, declined to comment. Solomon recently laid off 3,200 workers after a rough 2022

Goldman Sachs, which is led by Chief Executive David Solomon, declined to comment.

The bank’s long-winded move comes as the invasion of Moscow has led many companies to distance themselves from doing business with Russia..

Several companies, such as McDonald’s, have ceased operations in the country entirely, amid a series of Western sanctions.

Among them are several prominent US banks, which have reduced their exposure to Russia since it sent tens of thousands of troops to Ukraine last year.

The New York-based bank and several other companies have faced criticism for continuing to serve clients in the country.

Now nearly a year since the invasion began, Goldman, as well as London-based HSBC, were among the few notable ones still operating in Russia.

Other criminals include vaccine distributor Johnson & Johnson and consumer giant Procter & Gamble.

One of the RBC sources said Goldman’s asset portfolio, which includes minority stakes in recruiting firm Headhunter and real estate database Cian, has been sold to the local government.

Another offender is UK-based bank HSBC. The firm said in July it had agreed to sell its Russian business, but MRA said “a promise is just a promise until it’s kept.”

Goldman had said it was winding down its operations in Russia in accordance with regulatory requirements and sanctions.

An August 5 decree, signed by Putin, barred investors from so-called hostile 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 so that the deals would go ahead.

The invasion of Ukraine marked a sea change in the disclosure of sensitive intelligence to the public, the GCHQ chief 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 the BBC while editing the Today programme.