Citigroup has secured internal approval to sell its remaining Russian business, AO Citibank, to Renaissance Capital (RenCap). This significant step moves the banking giant closer to exiting the Russian market, a process that began with its announcement to wind down consumer and commercial banking activities in August 2022.
The anticipated signing and closure of the transaction are targeted for the first half of 2026, pending regulatory clearance and other customary conditions.
Key Takeaways
- Citigroup has received internal approval for the sale of its Russian business to Renaissance Capital.
- The deal is expected to be finalised in the first half of 2026, subject to regulatory approval.
- Citigroup will report its Russian operations as "held for sale" from Q4 2025, anticipating a pre-tax loss of nearly $1.2bn.
- The sale was authorised by a presidential decree from Russian President Vladimir Putin in November 2025.
Financial Implications
Citigroup plans to reclassify its Russian business as "held for sale" starting in the fourth quarter of 2025. This accounting change is expected to result in a pre-tax loss on sale of approximately $1.2 billion ($1.1 billion after-tax) for that quarter. The majority of this loss is attributed to currency translation adjustment (CTA) losses, which will be held in Accumulated Other Comprehensive Income (AOCI) until the sale’s closure.
Despite the anticipated loss, the total impact of CTA, both at the time of the loss recognition and at the final closing, is projected to be capital neutral to Citi’s Common Equity Tier 1 (CET1) Capital.
Background to the Sale
The path to this sale began in August 2022 when Citigroup announced its intention to exit its consumer and commercial banking operations in Russia. At that time, reports suggested potential talks with entities like Expobank and Reso-Garantia. The sale to RenCap received a crucial boost in November 2025 when Russian President Vladimir Putin issued a presidential decree authorising the transaction.
Citibank was a prominent foreign-owned bank in Russia, serving the local operations of major US corporations. Following this sale, only a limited number of Western banks, such as Austria’s Raiffeisen Bank, Italy’s UniCredit, and Hungary’s OTP, will continue to operate within Russia.
Sources
- Citi secures internal approval for sale of Russian business to RenCap, Retail Banker International.
