Big U.S. banks reported lower exposure to Russia in the first quarter, as Western nations imposed sanctions on some of the country's citizens and businesses in response to its seizure of Ukraine's Crimean peninsula.
During the first quarter, Bank of America Corp cut its net exposure to Russia by 22 percent to $5.2 billion, most of which was in the form of loans to Russian energy companies and banks, the company said in a Thursday filing with the U.S. Securities and Exchange Commission, or SEC.
"The situation remains fluid with potential for further escalation of geopolitical tensions, increased severity of sanctions against Russian interests, and possible Russian counter-sanctions," the second largest U.S. bank said in its filing.
JPMorgan Chase & Co's exposure to Russia declined by 13 percent to $4.7 billion, placing it outside the company's list of its top 20 country exposures, the bank said Friday in a quarterly filing with the SEC.
Citigroup Inc's exposure to Russia declined by 8.7 percent to $9.4 billion during the three months through the end of March, according to a Friday quarterly filing with the SEC. In the same period, the ruble depreciated 8.3 percent against the U.S. dollar and an index of Russian stocks fell 9 percent, Citigroup said.
The International Monetary Fund on Wednesday slashed its forecast for Russia's 2014 GDP growth from 1.3 percent to 0.2 percent, citing Ukraine-related sanctions as a risk factor.
JPMorgan said it was closely monitoring the impact of any current and future sanctions as well as possible contagion effects or potential credit downgrades that could influence other parts of the bank's business.
U.S. President Barack Obama and German Chancellor Angela Merkel warned on Friday of additional sanctions against Russia if it interferes with Ukraine's planned May 25 election.
Also see:
IMF Throws Ukraine $17 Billion Loan Lifeline But Pledges Caution
A Message from The Moscow Times:
Dear readers,
We are facing unprecedented challenges. Russia's Prosecutor General's Office has designated The Moscow Times as an "undesirable" organization, criminalizing our work and putting our staff at risk of prosecution. This follows our earlier unjust labeling as a "foreign agent."
These actions are direct attempts to silence independent journalism in Russia. The authorities claim our work "discredits the decisions of the Russian leadership." We see things differently: we strive to provide accurate, unbiased reporting on Russia.
We, the journalists of The Moscow Times, refuse to be silenced. But to continue our work, we need your help.
Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and every contribution makes a significant impact.
By supporting The Moscow Times, you're defending open, independent journalism in the face of repression. Thank you for standing with us.
Remind me later.
