Citigroup has taken a significant step toward exiting the Russian market, announcing that its board has approved a plan to divest its remaining operations in the country. The banking giant anticipates incurring a loss of $1.1 billion as it moves to finalize this sale. The transaction is expected to close in the first half of 2026, contingent upon obtaining the necessary regulatory approvals.
As part of this process, Citigroup will classify its remaining Russian business under the designation “held for sale” starting in the fourth quarter of 2025. This classification will have immediate financial repercussions, resulting in an after-tax loss reflected in the current quarter’s results.
The entity being sold, AO Citibank, is the last operational arm for Citigroup in Russia and will be acquired by Renaissance Capital, a Moscow-based investment bank. This decision comes after President Vladimir Putin granted authorization for Renaissance Capital to proceed with the acquisition, further paving the way for the divestiture of foreign holdings in the region.
The complexity of exiting the Russian market has been exacerbated since the start of the full-scale invasion of Ukraine. In response, the Russian government has instituted stringent regulations designed to control the exit of foreign businesses. These measures include substantial asset sales, mandatory exit taxes, and an overarching requirement for governmental approval, all of which have posed formidable challenges and heightened costs for companies seeking to withdraw from Russia.
