The Wall Street Journal: Goldman unlikely to pursue Russian bond deal after pressure from State Dept.
Goldman Sachs Group Inc. is likely to withdraw a bid on a $ 3 billion Russian bond deal after the U.S. government last week cautioned Wall Street firms against pursuing the business, people familiar with the matter said.
Goldman GS, -0.29% was the only U.S. bank to submit a bid to the Russian government, which in February invited 28 lenders, including several from Wall Street, to make a pitch for the bond sale. Goldman submitted a proposal with the caveat that it was subject to approval from senior bank executives, the people said.
That approval is now “very unlikely” after The Wall Street Journal reported last week that State Department officials were warning banks not to participate in the deal, the people said. It was unclear if Goldman has told the Russian government that it no longer intends to pursue the deal.
The $ 3 billion Eurobonds issue would be Russia’s first such international deal since the U.S. and its allies imposed sanctions on the country in 2014 following the war in Ukraine.
Banks including Bank of America Corp. BAC, +2.05% , Citigroup Inc. C, +2.30% , Morgan Stanley MS, +0.08% and Wells Fargo & Co. WFC, +1.74% decided against bidding on the politically risky deal, other people familiar with the matter said.
An expanded version of this report appears on WSJ.com.