Citi’s $1.2 billion exit from Russia nears completion in 2026 deal
Citi is set to completely exit Russia by selling its remaining operations to Renaissance Capital. The deal, expected to close in the first half of 2026, marks the end of the US bank’s presence in the country. Regulatory approvals will determine the final timeline for the transaction.
The move follows years of reduced activity, with Citi already winding down most of its services in Russia by mid-2025.
Citi’s Russian arm, AO Citibank, has operated as a standalone entity, fully separated from the bank’s global network. The sale will result in a pre-tax loss of US$1.2 billion for Citi, driven largely by a US$1.6 billion currency translation adjustment. A US$200 million benefit from future derecognition of the investment will partially offset the loss.
The bank expects to receive US$200 million in proceeds from the deal. The transaction is also projected to improve Citi’s CET1 Capital ratio by lowering risk-weighted assets. This follows the closure of most institutional banking services and the elimination of its consumer loan portfolio in the second quarter of 2025.
Russia’s exit rules have made departures costly for foreign banks. Companies leaving must pay a 35% voluntary exit tax and sell assets at a minimum 60% discount. In 2024, Raiffeisen Bank International and UniCredit paid around €1 billion in such taxes, with Raiffeisen contributing approximately €500 million and UniCredit €200 million.
While Citi, Societe Generale, and BNP Paribas have exited or scaled back, UniCredit and Raiffeisen Bank International still maintain operations in Russia. UniCredit has argued that its continued presence does not conflict with international sanctions. However, by early 2026, no major Western banks will remain actively operating in the country, despite earlier criticism from the European Central Bank.
The sale of AO Citibank will finalise Citi’s withdrawal from Russia after years of reduced activity. The bank’s departure reflects broader trends, as sanctions covering 70% of Russia’s banking system have pushed most international lenders to exit. The transaction’s completion will depend on regulatory approvals in the coming months.
