U.S. Banks Will Keep a Toe in Russia Despite Wind-Downs
International Trade attorney Antonia Tzinova was cited in a Reuters article discussing how U.S. banks are keeping a limited presence and holding on to banking licenses in Russia as they wind down their broader operations in the country. Wall Street banks with the biggest Russian exposures have said in the past few days that they plan to pull back their businesses in Russia following the country's invasion of Ukraine. These lengthy withdrawals could take years and cost billions of dollars. However, the slow exit also has its advantages, some experts say, as that method presents an opportunity for banks to change tack and rebuild if the geopolitical situation changes dramatically. Ms. Tzinova commented that if banks walk away from Russia entirely, it could be seen as hurting Russian citizens.
"There may be a long-term strategy that you don't tarnish the name of the company too much in Russia to the point where Russia will boycott you."