Goldman Sachs shuts down Russia business; US hotel chains freeze investments over invasion of Ukraine

NEW YORK — Goldman Sachs says it is closing its operations in Russia entirely, making it the first major Wall Street bank to do so since Russia invaded Ukraine.

Goldman’s announcement comes after Citigroup said it would start winding down its Russia operations. But that process will likely take longer because Citi operates a consumer banking and business banking division in the country.

Like other Wall Street banks, Goldman operated a small investment banking business in the country for the past few years. The bank said in a statement Thursday it has roughly $650 million in exposure to Russian debt.

Banking is the latest industry to come under pressure to cut its Russian ties due to the war. But unlike companies who make goods that ship to Russia, banks have loans, deposits, and existing customer relationships that take time to wind down or sell off.

Earlier, all three international hotel chains based in the United States froze their investments in Russia and put on hold any planned openings of new hotels there.

Marriott joins Hyatt and Hilton, which yesterday ceased any development of properties in Russia.

Marriott, like Hilton, says it’s shuttering its corporate office in Moscow as well.

Marriott hotels in Russia are owned by third parties and the company said it is evaluating the “ability” of those locations to remain open. Hyatt also said it’s evaluating the operations of hotels that remain open there.

All three hotels are either earmarking aid funds, donating profits from Russian properties, or opening hotel rooms to refugees in Europe.