International banks owed more than $121 billion by Russian entities

New Delhi, March 11 Goldman Sachs and JPMorgan Chase are the first major Western banks to get out of Russia following the invasion of Ukraine. More are likely to follow at a cost of tens of billions of dollars, CNN reported.

Goldman Sachs said Thursday that it is "winding down its business in Russia in compliance with regulatory and licensing requirements". JPMorgan Chase, America's largest bank, followed within hours, saying it was "actively unwinding" its Russian business.

The departures follow a scramble by Western banks to tally their exposure to Russia after President Vladimir Putin ordered the invasion of Ukraine, triggering punishing sanctions that cover most of the country's financial system, including its central bank and top commercial lenders — VTB and Sberbank, CNN reported.

The exits also come after a stampede of Western businesses out of just about every other sector of Russia's economy, and as ratings agencies warn that a Russian debt default is imminent.

International banks are owed more than $121 billion by Russian entities, according to the Bank for International Settlements, which suspended Russia's membership on Thursday. European banks have over $84 billion total claims, with France, Italy and Austria the most exposed, and US banks owed $14.7 billion, CNN said.

Goldman Sachs earlier disclosed that it had credit exposure to Russia of $650 million in December 2021. JPMorgan Chase said its current activities in Russia are "limited."

Other banks with more to lose could soon follow Goldman Sachs and JPMorgan Chase out of Russia. Kremlin spokesperson Dmitry Peskov said Thursday that the economic situation in Russia is "absolutely unprecedented" and blamed the West for an "economic war."