U.S. Citigroup Faces Massive Financial Hit in Russia Exit Deal
The American financial titan will record approximately $1.2 billion in pre-tax losses following the sale of its Russian subsidiary to Renaissance Capital, the institution disclosed. This figure significantly exceeds initial projections made when the bank first committed to shuttering its Russian presence.
Citigroup first signaled its departure from Russia in August 2022, joining a mass corporate retreat triggered by Western sanctions following Moscow's military actions in Ukraine. At that juncture, AO Citibank—the lender's Russian arm—held roughly $10 billion in assets, with exit costs initially pegged at $170 million. The bank had already offloaded its ruble-based consumer loan portfolio to Russia's Uralsib bank in December 2022.
"The approvals result in a pre-tax loss on the sale for the fourth quarter of 2025, largely related to the currency translation adjustment (CTA) losses that will also remain in accumulated other comprehensive income until closing," the financial institution stated.
Currency translation adjustment represents an accounting mechanism that records profits or losses stemming from the conversion of a foreign unit's books from local currency into the parent corporation's primary reporting currency.
Citigroup cautioned that the final loss amount remains subject to fluctuation based on foreign exchange rate movements. The organization will reclassify what remains of its Russian business as "held for sale" starting in the fourth quarter of 2025.
Russian President Vladimir Putin authorized Renaissance Capital's acquisition of Citigroup's Russian assets last month. According to documentation submitted to the US Securities and Exchange Commission, the transaction is anticipated to reach completion during the first six months of 2026.
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