Goldman Sachs has pulled out its operation from Russia along with JP Morgan due to the Russian invasion of Ukraine. The two are the first Wall Street giants to withdraw from the country. It is believed more heavyweights to follow the same.
As of now, tons of companies have cut back operations or exited Russia lately while the conflict between the two has stepped into the second month.
Kyrylo Shevchenko, governor of the Ukrainian central bank, is learned to have requested the Western Union to stop cash deliveries in Russian as well as Belarusian banks. Foreign consumers have started threatening to boycott banks and businesses having financial relations with Russian banks and businesses.
Nearly 2,000 HSBC customers have threatened to be switching over to another bank if it fails to withdraw the investments made in Russian companies dealing in gas and oil. Meanwhile, Lukoil, Rosneft, Gazprom and several more Russia-linked companies were lately blocked by the London Stock Exchange from trading after investors threatened to cut Russian ties.
Equinor and BP have divested in Rosneft. The two were the fund managers of the company. Abrdn is learned to be withdrawing about 5 million pounds stake from it.
The Western allies have imposed several sanctions on Russia. The import of oil and gas from the country has been banned. This has led to a shortage of energy in several European countries. The United Kingdom is facing a surge in the prices of food, fuel and other necessary items. Inflation is rising at a rapid pace and economists fear it may reach double-figureÂ by the end of 2022.
Russian banks have been simultaneously removed from the international SWIFT payment systems. This means no payment can be made to the country using the platform.
Russian forces, tanks and missiles have destroyed key cities and towns in Ukraine. Millions of citizens have been displaced. They have fled to neighboring countries for shelter.
The United States and NATO have denied confronting directly with Russia in Ukraine fearing it may lead to a third world war. US president Joe Biden is lately being criticized by the world for his irresponsible comment on Russian President Putin. It states Putin has no right to remain in power. The statement is being considered as regime change by many while the US government clarified it wasÂ simply for the moral responsibility of Putin to step down.
Meanwhile, Russia has warned other countries not to intervene in the conflict directly or else face the consequences.