Putin Approves Citigroup’s Sale Of Banking Operations In Russia To Renaissance Capital: Report

Citigroup had first announced plans to wind down its consumer and commercial banking operations in Russia in August 2022.

• This sale comes after Putin issued a decree requiring government approval for all sales involving entities from “unfriendly” nations.
• The decree imposes steep discounts on asset values on firms seeking to leave Russia and mandates contributions to Russia’s state budget.
• Details of the deal were not disclosed, but Citigroup had earlier mentioned that it estimates about $170 million in charges.

Russian President Vladimir Putin has signed an order approving Citigroup Inc.’s (C) sale of its banking operations in Russia to Renaissance Capital, according to a report by Bloomberg citing a government notice published on Wednesday.

The decree marks a key step in Citi’s long-planned exit from the Russian market, though the document offered no additional details about the terms or valuation of the transaction.

In response to the exodus of foreign companies, Putin issued a decree requiring government approval for all sales involving entities from “unfriendly” nations. The rule imposes steep discounts on asset values and mandates contributions to Russia’s state budget as conditions for foreign firms seeking to leave the country.

Citigroup’s Russia Exit

Citigroup first announced plans in August 2022 to wind down its consumer and commercial banking operations in Russia following the Kremlin’s invasion of Ukraine. The bank stated that it expects to incur approximately $170 million in charges.

Since then, Citigroup has gradually reduced its local exposure amid tightening restrictions on Western firms.

Citibank had halted debit card services, money transfers, ATM withdrawals, and transactions via the Central Bank’s Faster Payments System in 2024. It also closed its last retail branch last November.

Investigation By U.S. Authorities

Citigroup was also reportedly investigated by U.S. authorities, including the Department of Justice, the FBI, and the IRS, over its links to sanctioned Russian billionaire Suleiman Kerimov. The bank clarified that it adheres to strict compliance standards and is winding down most of its Russian operations.

“As of 2025, Citi’s only operations in Russia are those necessary to fulfil its remaining legal and regulatory obligations,” noted a statement on the company’s website.

The stock was up 0.44% in Wednesday’s preopen trade.

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