Citigroup Faces Huge Loss in Russia Exit

(MENAFN) Citigroup has announced it will incur a substantial loss from the sale of its remaining operations in Russia. The US banking giant revealed on Monday that the divestment will result in a pre-tax hit of approximately $1.2 billion.

The lender first declared plans to wind down its Russian business in August 2022, following a wave of Western companies leaving the country due to sanctions imposed over the Ukraine conflict. At that time, the assets of its Russian subsidiary, AO Citibank, were valued at around $10 billion, with the exit cost estimated at $170 million.

In December 2022, Citigroup sold its ruble-denominated consumer loan portfolio to Russia’s Uralsib bank. The latest transaction involves the sale of its unit to Russia’s Renaissance Capital, which will finalize in the first half of 2026.

The bank explained, “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.”

CTA refers to an accounting practice that records gains or losses when converting a foreign subsidiary’s financial statements from its local currency into the parent company’s reporting currency.

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