Citigroup announced on Monday it will incur a pre-tax loss of approximately $1.2 billion from the sale of its remaining Russian operations, marking a costly conclusion to its withdrawal from the country.
The U.S. banking giant initiated the wind-down of its Russian business in August 2022, joining a wave of Western firms departing after sanctions were imposed over the Ukraine conflict. At the time, its local unit held about $10 billion in assets.
The loss is primarily due to currency translation adjustments (CTA), an accounting method that captures the impact of converting the subsidiary’s financial statements from rubles to dollars. Citigroup noted the final figure could still fluctuate with exchange rate movements.
The buyer, Russia’s Renaissance Capital, received approval for the acquisition from President Vladimir Putin last month. The deal is slated to close in the first half of 2026, after which Citigroup will have fully exited the Russian market.