Putin greenlights Citi’s Russia exit as part of bank's worldwide reorganization

Core Points - Russian President Vladimir Putin has signed an order allowing Citigroup to sell its Russia-based division to Renaissance Capital, marking a significant step in the transition process [1][2] - Citigroup's stock rose by 2.6% on the day of the announcement and has increased by 47% in 2025, reflecting positive market sentiment regarding the sale [2] - The sale of Citigroup's Russian consumer business was initially announced in 2021, but the focus shifted to offloading the entire Russia-based subsidiary due to the Russia-Ukraine war [2][3] Company Operations - Citigroup has ceased nearly all institutional banking services in Russia as of March 31, 2023, and is now only providing services necessary to meet legal and regulatory obligations [3] - As of the end of September, Citigroup had approximately $11.7 billion in client exposure to Russia, primarily in corporate dividends that the Russian government has restricted [4] - The deal is pending additional approvals from US regulators and will encompass all remaining consumer and institutional business in Russia [4] Strategic Transformation - The agreement signed by Putin is part of Citigroup's broader transformation strategy under CEO Jane Fraser, which includes plans to divest 14 banking units globally [5] - Citigroup's board recently voted to make Jane Fraser the bank's board chair and awarded her a $25 million bonus in restricted stock, indicating confidence in her leadership and the bank's turnaround efforts [6] - Since Fraser took over, Citigroup has divested nine international subsidiaries, with ongoing plans to wind down operations in Korea and China alongside the Russian unit [7]