Citi sells Russian business to Renaissance Capital

Citi is pleased to announce the completion of the sale of its Russian division, AO Citibank, to Renaissance Capital (RenCap), marking its full departure from operations in the country. This sale encompasses all remaining businesses and approximately 800 employees, signifying the final steps in Citi’s exit from Russia.

The decision to exit the consumer business in Russia was first disclosed in April 2021, with an expanded departure plan announced in March 2022. After receiving all required regulatory approvals, the transaction was successfully closed.

Ernesto Torres Cantú, Citi’s Head of International, expressed gratitude for the dedication and professionalism exhibited by colleagues throughout the exit process. The divestiture of remaining business operations is anticipated to have a positive impact on Citi’s Common Equity Tier 1 (CET1) capital in the first quarter of 2026, estimated at around $4 billion. This benefit will primarily derive from the deconsolidation of associated risk-weighted assets, reduction in disallowed deferred tax assets (DTA), and the release of currency translation adjustment (CTA) loss.

While realizing gains in the first quarter of 2026, the $1.6 billion CTA loss is predicted to have a neutral effect on regulatory capital for Citi. Skadden, Arps, Slate, Meagher & Flom LLP provided legal counsel to Citi throughout the sale process.

As a premier banking partner for global institutions, a leader in wealth management, and a trusted personal bank in the U.S., Citi operates in over 180 countries and regions, serving a diverse clientele. Additional information about Citi’s offerings and services can be found on their website.

It’s worth noting that certain statements in the press release are considered “forward-looking statements” under the U.S. Private Securities Litigation Reform Act of 1995. Although based on current expectations, these statements are subject to changes and uncertainties that may impact actual results and financial conditions. Factors such as changes in Citi’s balance sheet and foreign exchange rates could influence outcomes. Interested parties are encouraged to review Citi’s filings with the U.S. Securities and Exchange Commission, including the “Risk Factors” section of the 2024 Form 10-K for further insights.

In conclusion, the sale of Citi’s Russian business to RenCap represents a strategic decision to streamline operations and enhance capital position. With the completion of this transaction, Citi reinforces its commitment to optimizing its global business portfolio.