Goldman Sachs Group Inc. is closing its brokerage unit in Russia and transfer all brokerage operations to its banking subsidiary in the country, RBC reported.
Dmitri Sedov, who co-heads Goldman Sachs' Russian operations, told the newswire that the licenses held by OOO Goldman Sachs Bank and brokerage unit Goldman Sachs OOO duplicate each other, and keeping two separate legal entities with similar scope of activities is inefficient.
The changes will not result in staff layoffs and will not affect the company's clients in Russia. Sedov also said the introduction of the new operating format will result in significant savings compared with the scale of the Russian business, but he did not disclose specific figures.
In addition to the brokerage and banking units, Goldman Sachs is also present on the Russian market through a branch of its U.K. subsidiary. The branch provides investment banking services, which do not require a license from the Russian central bank, RBC noted.
Morgan Stanley also recently decided to reorganize its business in Russia and plans to shut down its banking operations in the country in 2020. The company will continue to offer certain consulting services in Russia, which are not subject to licensing by the Russian central bank.