The financial institution intends to classify the outstanding activities as “available for purchase” in its Q4 report and anticipates finalizing the disposal of AO Citibank during the initial six months of 2026, as indicated in a regulatory document released on Monday.
Citigroup has been contemplating departing the nation for a number of years amidst intensifying U.S. and European Union restrictions. Other banking institutions have also been diminishing their footprint, with Goldman Sachs Group Inc. earlier this year obtaining the green light to divest its Russia operations. Citigroup commenced curtailing activities in the nation even prior to Russia’s invasion of Ukraine in 2022. That same year, the firm declared its intention to shutter its retail and domestic commercial banking activities in Russia and terminate virtually all institutional banking services. Merely the activities required to fulfill specific legal and regulatory responsibilities persist, according to the bank’s website. Citigroup has come to an understanding with RenCap, one of Russia’s most established investment banks, to transfer its residual undertaking. Putin ratified a decree in November authorizing the conclusion of the transaction.
The financial institution stated that the deficit stemmed predominantly from currency restatements. Citigroup cautioned that the magnitude of the deficit is subject to modification should the currency market vacillate.
“The complete divestiture of the remaining undertakings is projected to exert a favorable influence on Citi’s CET1 capital, chiefly via the elimination of associated risk-adjusted assets from the consolidated financial statement,” the financial institution expressed.
Source: Bloomberg