Citigroup closes the Russia chapter: sale to RenCap and $1.1B loss

The U.S. bank accelerates its exit from the Russian market: the deal, approved by the Kremlin, will be completed by the first half of 2026 and entails a loss largely linked to currency effects.

Citigroup is putting an end to its presence in Russia with a transaction of strategic, political, and financial significance. The U.S. banking giant has announced the sale of its remaining operations in the country to Renaissance Capital, one of the longest-standing institutions in the Russian investment landscape. The move comes after years of downsizing and international pressure, culminating in an estimated after-tax loss of about $1.1 billion.

In the fourth quarter, Citigroup will classify the remaining operations as “held for sale,” while the transaction is expected to be completed by the first half of 2026. The agreement received its final approval last November, when President Vladimir Putin signed the decree authorizing the sale.

Even before Russia’s invasion of Ukraine in 2022, Citigroup had been considering leaving the local market, which had become increasingly complicated due to years of mounting sanctions imposed by the United States and the European Union. After the outbreak of the conflict, the bank proceeded with the disposal of its consumer banking and local commercial services, keeping only the functions required to manage outstanding regulatory obligations.

The announced loss is mainly due to foreign currency translation adjustments, but the bank warns that it may fluctuate with market conditions. Despite the accounting loss, Citigroup still expects a positive impact on its CET1 Capital, thanks to the deconsolidation of the risk-weighted assets tied to its Russian business.

With this transaction, Citi closes a long and complex chapter, aligning itself with a trend already embraced by other major Western financial institutions. The exit marks the definitive retreat of large U.S. banks from a market that has become increasingly isolated.

Andrea Pelucchi