Even Deutsche Bank leaves Russia

by Matt Egan, CNN

In a significant U-turn, Deutsche Bank announced on Friday that it plans to shut down operations in Russia.

The change comes just a day after Deutsche Bank told CNBC it was not “practical” to leave Russia, a source of legal problems in the past for Germany’s biggest lender.

“Like certain international counterparts and in accordance with our legal and regulatory obligations, we are in the process of terminating our remaining operations in Russia while we assist our non-Russian multinational clients to scale down their operations,” Deutsche Bank said in a statement. Friday.

Going forward, Deutsche Bank said there would be “no new business in Russia.” The move comes a day after Goldman Sachs and then JPMorgan Chase revealed plans to wind down their own operations in Russia.

It’s unclear what triggered the reversal of Deutsche Bank, which earlier this week said it had “limited” exposure to Russia, with gross loan exposure of around $1.5 billion. . This is more than double the amount of exposure that Goldman Sachs has indicated.

“As we have said many times, we condemn the Russian invasion of Ukraine in the strongest terms and support the German government and its allies in defending our democracy and freedom,” the statement said. Deutsche Bank in its press release.

Dozens of companies in sectors ranging from airlines to retailers, media to hospitality, have pulled out of Russia since its invasion of Ukraine.

Deutsche Bank said it had “significantly reduced” its exposure to Russia since 2014.

In early 2017, Deutsche Bank was hit with more than $600 million in fines for a $10 billion Russian money laundering scheme involving its branches in New York, Moscow and London.

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