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Citigroup and Deutsche Bank Join Russia Boycott, Will Withdraw Operations

Russian sanctions have erupted across the globe. Now, two of the country’s most prominent bank presences have withdrawn their operations. In the latest news, both Citigroup and Deutsche Bank have joined hoards of other companies as the financial institutions have abandoned their Russian holds as public pressure endures.

What We Know:

  • Russian sanctions arose as international governments and officials condemned Russia’s invasion of Ukraine.
  • Citigroup and Deutsche Bank’s withdrawal from Russia was sudden following their insistence to “take care of Russian clients.”
  • American banking institutions have been slow in ceasing operations in Russia.

Citigroup Among the Latest to Impose Russian Sanction

According to the New York Post, Citigroup and Deutsche Bank’s withdrawal from Russia came as a major reversal this week. Previously, the institutions stated their intent to continue providing for Russian citizens. On Monday morning, Citigroup, already working to decrease its operations in Russia, announced further plans to reduce its presence there.

As per the outlet, American banking institutions have a less significant presence in Russia than many European banks. However, Citigroup nevertheless remains the largest U.S. bank presence in the invading nation. In April 2021, the banking institution closed its Russian consumer bank operations while reportedly reconsidering its business operations there as of Wednesday.

“We have now decided to expand the scope of that exit process to include other lines of business and continue to reduce our remaining operations and exposure,” said Edward Skyler, Citigroup’s Head of Global Public Affairs. Skyler warned, however, that the move would “take time to execute.”

Wall Street Firms were Reluctant to Pull Russian Operations

Since Russia initiated its invasion of Ukraine last month, numerous businesses, brands, and companies have denounced the nation’s presidency. Companies ranging from Ford, to Visa and Mastercard, down to Publix issued announcements regarding their withdrawal from and suspension of Russian operations. As stated by President Biden, the move is intended to weaken Putin’s economy.

However, just recently have Wall Street institutions begun suspending their operations in Russia.

Citigroup and Deutsche Bank are the most recent Wall Street giants to announce their departure from Russian operations. On Friday, Deutsche leadership issued a statement that said, “Like some international peers and in line with our legal and regulatory obligations, we are in the process of winding down our remaining business in Russia.”

The firm further announced its plans to help “non-Russian multinational clients” reduce their operations.

Citigroup and Deutsche Bank’s announcements came after Wall Street icon Goldman Sachs withdrew its operations from Russia on Thursday. The New York Post reports the move made the Wall Street firm the first to initiate operations withdrawals since Russia launched its attack on Ukraine.

The outlet reports JP Morgan also severed ties on Thursday.