Following Russia's invasion of Ukraine, JPMorgan Chase (JPM.N) and Goldman Sachs Group (GS.N) announced the suspension of their Russian operations on March 10, becoming the first major U.S. banks to remove them and put pressure on competitors to follow.

Western financial institutions are finding it more difficult to do business in Russia due to international sanctions against the country.

According to the Bank for International Settlements (BIS), while U.S. banks' exposure remains large, totaling $14.7 billion, European banks appear to have the largest exposure to Russia.

In an emailed statement, the bank said.

“Goldman Sachs is closing its operations in Russia to comply with regulatory and licensing requirements.”

JPMorgan Chase stated.

“As directed by governments around the world, we have been actively closing out our Russian operations and are not seeking any new business in Russia.”

With limited current activity, the bank is assisting its global clients in managing Russia-related risks, resolving and settling pre-existing obligations, acting as a custodian for clients and taking care of employees.

According to a source familiar with the situation, Goldman Sachs will not immediately remove the business, but will shut it down, and any losses will become "insignificant.

About half of Goldman Sachs' employees in Moscow have moved or are moving to Dubai after Russia's invasion of Ukraine last month, three sources familiar with the matter said. In Moscow, the bank has about 80 employees.

Goldman Sachs and JPMorgan Chase remove Russia

Some of the relocated employees will work with colleagues still in Moscow, the sources said.

The Russian head of Goldman Sachs is believed to remain in Moscow, a source said. The bank disclosed in its annual filing that it had $650 million in credit exposure to Russia.

Goldman Sachs shares fell 2.8 percent to $325.97 in midday trading Friday. By Wednesday's close, Goldman Sachs had fallen 12.8 percent this year.

Citigroup Inc, the largest U.S. bank, is operating its Russian consumer business on a more limited basis while sticking to its previous plan to divest its franchise. Citigroup's total exposure to Russia is nearly $10 billion, and its chief financial officer warned that in a "severe stress scenario" it could lose as little as half that amount.

By recording the cost of building up reserves on certain assets before losses are final, Citigroup can spread the pain of the Russian losses over several quarters, said David Hendler, an analyst with Viola Risk Advisors.

The processing procedure says.

“This could put pressure on earnings in the next few quarters.”

JPMorgan Chase (JPM.N), one of the other U.S. banks operating in Russia, declined to comment on its plans.

Overall, Goldman Sachs ranked seventh in investment banking revenue generated in Russia in 2021, with Citigroup fifth at $22.8 million, Morgan Stanley fourth at $27.3 million, JPMorgan Chase second at $32.8 million and VTB Capital first in Russia. Goldman Sachs generated $19.5 million in revenue last year, according to Refinitiv.

Earlier, two people familiar with the matter told Reuters that in Europe, Austria's Raiffeisen Bank International (RBI) was considering leaving Russia.

Experts say it will be difficult for banks to extricate themselves from the market, but the process will take months or even years.