Citigroup Gets Approval to Sell Russia-Based Banking Unit

Core Insights - Russian President Vladimir Putin has authorized Citigroup Inc. to sell its Russian banking unit, AO Citibank, marking a significant step in the bank's planned withdrawal from Russia [1][10] - The sale reflects Citigroup's strategy to streamline global operations and exit non-core markets [1] Details of the Sale - Citigroup has received Kremlin approval to transfer AO Citibank to Renaissance Capital, a Moscow-based investment bank, although the deal amount has not been disclosed [2] - The approval allows Citigroup to expedite operational preparations and secure remaining regulatory clearances necessary to finalize the sale [2][10] - The divestiture includes Citigroup's remaining consumer and institutional operations in Russia, with nearly all institutional services already closed [3] Financial Exposure and Future Steps - As of September 2025, Citigroup had approximately $13.5 billion in exposure tied to Russia, primarily in corporate dividends that the Russian government has restricted [4] - The sale is expected to accelerate Citigroup's operational wind-down in Russia, covering all remaining operations [5][10] Global Restructuring Strategy - Under CEO Jane Fraser's transformation strategy, Citigroup is reshaping its global footprint by focusing on core businesses and reallocating capital to higher-return areas like wealth management [6] - Recent divestitures include a 25% stake in Banamex and the sale of its consumer banking business in Poland, among others [6][7] - These initiatives are aimed at freeing up capital for investment in key wealth hubs, with expected annualized run-rate savings of $2–$2.5 billion and a projected return on tangible common equity of 10–11% by 2026 [8] Market Performance - Citigroup's shares have increased by 46.4% over the past year, outperforming the industry's growth of 28.9% [9]