US-based investment bank and financial services company Citi moved one step closer to wrapping up its Russia operations on Monday, after years of delay caused in part by stringent exit rules imposed by Russian authorities.
In a statement, the bank said that it had obtained the necessary internal approvals to go forward with the sale of AO Citibank (its Russian subsidiary) to Renaissance Capital – one of Russia’s oldest investment banks.
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“The sale is anticipated to be signed and closed in the first half of 2026 and is subject to receipt of regulatory approvals for Citi and satisfaction of other conditions,” the statement added.
According to Euronews, a filing with the US Securities and Exchange Commission shows that Citi expects to record a pre-tax loss of approximately $1.2 billion on the sale in the fourth quarter of 2025, or roughly $1.1 billion after tax.
The bulk of this billion dollar loss is down to currency translation adjustment (CTA) losses, which reflect the impact of exchange rate movements over time.
However, the value of Citigroup shares rose by 3.07% on Nov. 12, when Russian President Vladimir Putin approved the sale of its Russian subsidiary, at an earlier stage of the exit process.
Despite the $1 billion hit caused by the sale, Citi said that “the overall divestment of its remaining Russian operations is expected to benefit its CET1 capital position, mainly through the deconsolidation of associated risk-weighted assets,” as per Euronews.
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The bank first announced plans to withdraw from Russia in 2021, as part of a wider strategy to step back from 13 markets. When Russia launched its full-scale invasion of Ukraine in 2022, Citi pledged to halt almost all remaining operations, including services for individuals and small and medium-sized businesses.
As is the case for many Western banks, this process may have proved lengthier and more difficult than the group anticipated.