Citigroup to Exit Russia With Sale of AO Citibank to Renaissance Capital

Citigroup has announced a major step in its long-running exit from the Russian market, confirming that its board has approved a plan to sell AO Citibank, its remaining business in Russia, to investment bank Renaissance Capital. The transaction is expected to result in a pre-tax loss of approximately $1.2 billion, which Citi anticipates recording in the current quarter, according to a filing with the U.S. Securities and Exchange Commission.

The deal is expected to be signed and completed in the first half of 2026, marking a significant milestone in Citigroup’s efforts to reduce its exposure to Russia. Citi also noted that the projected loss related to the sale remains subject to change, particularly due to potential foreign exchange movements and other factors that could affect the final valuation.

As part of the process, Citigroup plans to classify its remaining Russian business as “held for sale” starting in the fourth quarter of 2025. This accounting classification reflects the bank’s clear intention to divest and formally separates the Russian unit from its ongoing core operations.

The sale follows recent regulatory approval from Russian authorities. Last month, Russian President Vladimir Putin granted permission for Renaissance Capital to acquire Citibank’s Russian operations, clearing a key hurdle for the transaction to move forward. Such approvals have been required for foreign companies seeking to exit the Russian market amid ongoing geopolitical tensions and sanctions.

Citigroup’s decision is consistent with its earlier strategy announcements. In August 2022, the bank revealed plans to wind down its consumer banking and local commercial banking operations in Russia as part of broader efforts to streamline its global footprint and manage geopolitical risk. Since then, Citi has been steadily scaling back activities while exploring options to fully exit the country.

Once completed, the sale to Renaissance Capital will effectively conclude Citigroup’s presence in Russia, bringing to an end a complex and costly withdrawal process. The move underscores the financial and operational challenges global banks continue to face as they navigate exits from high-risk markets while balancing regulatory, political, and shareholder considerations.