LONDON/NEW YORK : Global banks including Citigroup Inc, JPMorgan Chase & Co and Societe Generale face pressure to commit to remaining as custodian banks in Russia, as rivals and funds fret they may lose services critical to future investment in the country.
A source with knowledge of Citi said that major U.S. and international businesses in Moscow use that bank and cutting those customers off would damage client relations. Other bankers said it is crucial to the industry that Citi, a key player, keep operating in Moscow.A second banker, based in New York, said he had sought assurances from SocGen that they would"stay on the ground" so that his bank could meet custody obligations to clients.
In an emailed statement, a spokeswoman for SocGen said the group was"conducting its business in Russia with the utmost caution and selectivity, while supporting its historical clients." Citi, meanwhile, originally said it would operate its Russian business on a more"limited basis" in the wake of the war, which President Vladimir Putin has called"a special military operation."