Citi secures internal approval for sale of Russian business to RenCap

Group 1 - Citi has received internal approval to proceed with the sale of AO Citibank, which manages its remaining business in Russia, to Renaissance Capital (RenCap) [1] - The sale is expected to be signed and closed in the first half of 2026, pending regulatory clearance and other conditions [1] - Citi will report its Russian business as "held for sale" starting from the fourth quarter of 2025 [1] Group 2 - Citi anticipates a pre-tax loss on the sale of nearly $1.2 billion (approximately $1.1 billion after-tax) in the fourth quarter of 2025, primarily due to currency translation adjustment (CTA) losses [2] - These CTA losses will remain in Accumulated Other Comprehensive Income (AOCI) until the transaction closes, and the total impact is expected to be capital neutral to Citi's Common Equity Tier 1 (CET1) Capital [2] Group 3 - In November 2025, Russian President Vladimir Putin authorized the sale of Citibank's remaining Russian operations to RenCap through a presidential decree [3] - Citibank was one of the largest foreign-owned banks in Russia, servicing major US firms [3] - Citigroup announced plans to wind down its consumer and commercial banking activities in Russia in August 2022, with initial talks involving entities like Expobank and Reso-Garantia [3] Group 4 - A limited number of Western banks continue to operate in Russia, including Raiffeisen Bank, UniCredit, and OTP [4] - In December 2024, Citigroup began introducing new artificial intelligence (AI) tools to its global workforce, with around 140,000 employees set to gain access [4]