Other lenders have also scaled back, with Goldman Sachs gaining approval earlier this year to sell its business in Russia
[NEW YORK] Citigroup said that it expects to post a roughly US$1.1 billion after-tax loss on the sale of its remaining business in Russia to Renaissance Capital.
The bank plans to account for the remaining operations as “held for sale” in its fourth-quarter earnings and expects to complete the sale of AO Citibank in the first half of 2026, according to a regulatory filing on Monday (Dec 29).
Citigroup had been mulling an exit from the country for years amid escalating sanctions from the US and European Union. Other lenders have also scaled back, with Goldman Sachs gaining approval earlier this year to sell its business in Russia.
Citigroup had been scaling back its business in the country even before Russian President Vladimir Putin invaded Ukraine in 2022. That year, the company said that it would wind down its consumer and local commercial banking operations in the country and stop offering nearly all of its institutional banking services there. Its remaining operations were only those necessary to fulfil some outstanding legal and regulatory operations, according to its website.
Citigroup struck a deal with RenCap, one of Russia’s oldest investment banks, to offload the rest of its business. In November, Putin signed an order allowing the deal to go through.
The loss is largely related to currency-translation adjustments, according to a statement. The bank cautioned that the loss could be changed further if currency markets move.
“The overall divestiture of the remaining business operations is expected to provide a benefit to Citi’s CET1 Capital, primarily driven by the deconsolidation of associated risk-weighted assets,” the bank said. BLOOMBERG
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