Citi has completed the sale of its former Russian subsidiary, AO Citibank, to Renaissance Capital, marking the bank’s full withdrawal from Russia.
The agreement covers all remaining business activities in the country and affects around 800 employees.
Approvals for the transaction included sign-off from President Vladimir Putin in November last year, followed by internal approval within Citi in December.
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The bank first announced its decision to leave the Russian consumer market in April 2021, later broadening its exit strategy in March 2022 to include other business segments.
The sale has cleared all required regulatory hurdles.
Citi indicated that this divestment is anticipated to add approximately $4bn to its common equity tier 1 (CET1) capital during the first quarter of 2026.
This projection is based on factors such as reduced risk-weighted assets, lower deferred tax assets, and the release of losses related to currency translation.
The $1.6bn currency translation adjustment loss, though realised, is considered neutral for Citi’s regulatory capital over time.
Legal advice on the transaction was provided by Skadden, Arps, Slate, Meagher & Flom.
Citi International head Ernesto Torres Cantú said: “We’ve now completed the final steps in Citi’s exit from Russia, a process that began in March 2022. We greatly appreciate the professionalism and hard work of our colleagues throughout this process.”
Meanwhile, other foreign banks are also adjusting their Russian operations.
In December, Italy’s UniCredit began scaling back its Russian involvement, with several executives departing and a significant portion of leasing assets reportedly divested, according to Russian business daily Kommersant.
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