Morgan Stanley to shut down its Russian banking business in Q1, 2020


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Morgan Stanley to shut down its Russian banking business in Q1, 2020

Ahead of an upcoming US election in 2020 and a complex involvement of Russia on 2016’s Trump’s presidential election which would likely to raise further questions before next presidential election, one of the largest US lenders, Morgan Stanley had sent a formal notice to Russian Central bank, saying that it would be shutting down its banking operation in the country during the first quarter of 2020, the sixth largest US lender, Morgan Stanley's Russian wing had unveiled in its annual report.

Nevertheless, after questions had been raised over Russian involvement on US presidential election, Morgan Stanley announced last year that it had been seeking a voluntary shutdown of its lending business in Russia. Apart from that, Morgan Stanley’s Russian subsidy had also been quoted saying in its annual report that the EU and US sanctions imposed on Russia since 2014, had made it much difficult for the Russ businesses to enter into the international markets.

Addressing concerns over Russian financial sectors over the upcoming years in the wake of multiple sanctions on leading Russ lenders including Russian central bank, hanging on US Congress prodded by the Democrats, the report said, “(The) impact of changes in the economy on the future results of the bank’s business and its financial condition may turn out to be significant”.

The sixth largest US lender in terms of assets by 2018, Morgan Stanley would be keeping a consultancy business in Russia, which may nor require a license.