Citigroup expects $1 billion loss from Russia exit

Citigroup Inc. is expected to incur a loss of more than $1 billion from the sale of its remaining Russian operations. The U.S. banking giant announced in August 2022 that it would wind down its activities in Russia, joining a wave of Western firms exiting the country after sanctions were imposed over the Ukraine conflict. At that time, the assets of Citigroup’s Russian unit, AO Citibank, were valued at roughly $10 billion, and the initial cost of the exit was estimated at $170 million.

In December 2022, Citigroup sold its portfolio of ruble‑denominated consumer loans to Uralsib Bank, a Russian financial institution. The subsequent sale of the remaining unit to Renaissance Capital, a Russian investment bank, is projected to generate a pre‑tax loss of about $1.2 billion, largely due to currency‑translation‑adjustment (CTA) losses. CTA is an accounting method that records gains or losses that arise when a foreign subsidiary’s financial statements are converted from the local currency to the parent company’s reporting currency. The final loss could change further as foreign‑exchange rates fluctuate.

Citigroup will classify its remaining Russian operations as “held for sale” beginning in the fourth quarter of 2025. Last month, Russian President Vladimir Putin approved Renaissance Capital’s acquisition of Citigroup’s Russian assets, with the transaction expected to close in the first half of 2026, according to a filing with the U.S. Securities and Exchange Commission. This development marks a significant step in Citigroup’s withdrawal from the Russian market, a process triggered by sanctions on Moscow. The sale reflects a broader trend of Western companies leaving Russia amid the economic and regulatory challenges posed by the ongoing Ukraine conflict. As the deal proceeds, Citigroup will likely concentrate on finalizing the sale and mitigating any risks associated with its exit.