Goldman Sachs and Western Union pull out of Russia

Image source, Getty Images

Goldman is the first Wall Street bank to pull out of Russia in response to the invasion of Ukraine.

Western Union will suspend operations in Russia.

A rush of global brands have stopped operations in Russia.

The owner of Uniqlo decided to suspend operations in the country after making a U-turn.

International sanctions against Russia have made it difficult for Western financial institutions to operate in Moscow.

More than 330 firms have pulled out of the country in the last few days, according to researchers at Yale.

Goldman Sachs said on Thursday that it would be winding down its business in Russia rather than leaving immediately.

The bank said it was complying with regulatory requirements.

At the end of the year, Goldman Sachs had $650m in credit exposure in Russia.

JP Morgan Chase said it was actively unwinding Russian business with activities focused on taking care of staff and helping global clients manage risk and close out obligations.

Western Union stood with the world in condemning the invasion of Ukraine.

In light of the ongoing tragic impact of Russia's assault on Ukraine, we have arrived at the decision to suspend our operations in Russia.

Money flows in Russia have been hit by the action. Western Union has money transfer and payments services in more than 200 countries.

In an interview with the British Broadcasting Corporation published today, the Governor of the Ukrainain Central Bank called for Western Union to stop delivering cash to Russian and Belarusian banks.

Fast Retailing said on Thursday that it had decided to change its stance on trading in Russia.

It said it was faced with operational challenges due to the worsening of the conflict situation after Russia's invasion of Ukraine.

It said earlier in the week that it would keep its Russian shops open.

In its latest statement, it said that it couldn't continue in Russia.

Image source, Reuters

Uniqlo has made everyday clothing available to the general public in Russia.

We have recently faced a number of difficulties, including operational challenges and the worsening of the conflict situation. We will temporarily suspend our operations for this reason.

Rio Tinto became the first major mining company to cut ties with Russian businesses when it halted trading in Russia.

New York-based Marsh McLennan, the world's biggest insurance broker, said it would leave Russia on Thursday. The group said that it will transfer ownership of its Russian businesses to local management.

Similar moves by US companies such as Caterpillar have led to Japanese firms stopping exports and most operations in Russia.

The supply chain situation was one of the factors taken into account.

Mykhailo Fedorov was the Vice Prime Minister of Ukraine.

Sony stopped releasing films in Russia and suspended the launch of a racing game.

Food companies have stopped investment in Russia, but they will still provide essentials.

The fast food giant has said that the move will cost about $50 million a month.

Kevin Ozan, chief financial officer, said that this is a really challenging and complex situation for a global company.

Starbucks, Coca-Cola, and other US food retailers have said they will stop doing business in Russia.

Burger King has stopped all marketing and investment in Russia. Many of its Russian outlets will remain open as they are managed by local people.

According to the Izvestia newspaper, the Russian government put together a list of about 60 foreign companies that could be nationalised in response to the suspension of operations.

Will Vernon, producer of the Moscow edition of the BBC News, said that firms such as Apple, Ikea, Microsoft, IBM, Shell, McDonald's,Porsche, Toyota and H&M could have their accounts and assets seized.

It's not clear how the nationalised companies would be able to sell their products.

Russia has imposed export bans on a number of products.

There is a ban on exports of telecoms, medical, vehicle, agricultural, and electrical equipment.

In the UK, the business lobby group called for government support as Western economies cope with the repercussions from Russia's invasion of Ukraine.

Despite their cost, the sanctions that have been placed on Russia are fully supported by theCBI.

Tony Danker said that the UK government must help businesses deal with the effects of rising energy costs and inflation.

He said the UK and other countries need to confront the economic consequences of Russia's actions.

The government needs to fast-track progress on some of the big policy issues to help firms invest.

Mr Danker wants the government to support renewable energy and energy intensive industries.

He asked the UK government to stand behind domestic oil and gas in our energy transition and to identify new trading partners for minerals and other commodities.