Citigroup Inc. is expected to incur a significant loss of over $1 billion from the sale of its remaining business operations in Russia. The US banking giant announced its plans to wind down its operations in Russia in August 2022, amid a wave of Western firms exiting the country due to sanctions imposed by the international community over the Ukraine conflict.
At the time, the assets of Citigroup’s Russian unit, AO Citibank, totaled approximately $10 billion, with the initial estimated cost of leaving Russia standing at $170 million. In December 2022, the bank sold its portfolio of ruble-denominated consumer loans to Uralsib bank, a Russian financial institution.
The sale of Citigroup’s unit to Renaissance Capital, a Russian investment bank, is anticipated to result in a pre-tax loss of around $1.2 billion, primarily attributed to currency translation adjustment (CTA) losses. CTA is an accounting method that captures gains or losses arising from the conversion of a foreign subsidiary’s financial statements from its local currency to the parent company’s reporting currency.
The loss may be subject to further changes due to fluctuations in foreign exchange rates. Citigroup will classify its remaining Russian operations as “held for sale” as of the fourth quarter of 2025. Last month, Russian President Vladimir Putin granted approval for Renaissance Capital to acquire Citigroup’s Russian operations, with the deal expected to close in the first half of 2026, according to a filing with the US Securities and Exchange Commission.
The development is a significant step in Citigroup’s withdrawal from the Russian market, which was initiated in response to the sanctions imposed on Moscow. The sale is part of a broader trend of Western companies exiting Russia, driven by the economic and regulatory challenges posed by the ongoing Ukraine conflict. As the deal progresses, Citigroup will likely focus on finalizing the sale and mitigating any potential risks associated with its exit from the Russian market.
