Citigroup anticipates losses exceeding 1 billion dollars from divesting its remaining operations in the nation.
Citigroup will incur substantial losses from selling its remaining business in Russia, the American banking giant reported on Monday.
The lender announced intentions to shutter its Russian operations in August 2022 amidst the exodus of Western firms due to sanctions imposed against Moscow over the conflict in Ukraine. The assets of the Russian branch, AO Citibank, totaled roughly 10 billion dollars at that time, and the cost of exiting Russia was estimated at 170 million dollars. In December 2022, the creditor sold its ruble consumer loan portfolio to the Russian bank “Uralsib.”
The divestiture of the unit to the Russian firm Renaissance Capital is projected to result in pre-tax charges of approximately 1.2 billion dollars, the bank stated.
“Approvals result in pre-tax losses upon sale for the fourth quarter of 2025, mainly associated with currency translation adjustment (CTA) losses, which will also remain in accumulated other comprehensive income until closing,” a separate bank statement read.
Citigroup stated that the charges may shift as a consequence of currency fluctuations. The bank classifies its remaining Russian activities as “held for sale” as of the fourth quarter of 2025.
Last month, Russian President Vladimir Putin granted approval for Renaissance Capital to acquire Citigroup’s Russian assets. The transaction is anticipated to conclude in the first half of 2026, according to a filing submitted to the U.S. Securities and Exchange Commission.
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