Sunday, May 8, 2022

Western Banks Operating In Russia Could Lose Billions


According to some, Banks that are Planning to Close their Russian operations, which collectively have $86 billion of exposure in Russia, are setting aside more than $10 billion in expected Losses.

This comes amid International Sanctions forcing Businesses and Banks to Cease operation in Russia, because of its Invasion of Ukraine.

Banks that are still operating in Russia include Italian lender UniCredit, which set aside $1.3 billion as it could face a loss of $5.5 billion. UniCredit has been doing business for 17 years and has 4,000 workers and 2 million Russian customers.

Two French banks, Société Générale and Crédit Agricole, have set aside $591 million and $410 million respectively.

Société Générale announced last month the Sale of its entire stake in Rosbank to an Investment company founded by Vladimir Potanin.

Raiffeisen, an Austrian bank, reported having 4.2 million customers and 9,400 staff in Russia. The bank set aside $24 million.

Credit Suisse, which is being Sued by a U.S. Law firm over Claims related to Russian oligarchs, said it lost $211 million because of the Invasion, while fellow lender UBS said it had Cut its Risk Exposure by a third to $400 million.

Citigroup, could face the Biggest Loss of all the Banks, as it disclosed the Largest Direct exposure to Russia with up to £3 billion in potential Losses, set aside $1 billion last month.

JPMorgan said it had set aside around $300 million to cover potential losses, but CEO Jamie Dimon warned it could lose up to $1 billion.

Goldman Sachs said it suffered a Net loss of about $300 million on Investments related to Russia and Ukraine.

JPMorgan and Goldman Sachs, announced in early March they were Unwinding Businesses in Russia.










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