US’s Citigroup expects big loss from Russia’s remaining business sales
The bank first revealed plans to wind down its Russian business in August 2022, amid a broader withdrawal of Western firms following sanctions imposed on Moscow over the Ukraine conflict. At the time, Citigroup’s Russian unit, AO Citibank, held assets totaling approximately $10 billion, with exit costs initially estimated at $170 million. In December 2022, the bank sold its portfolio of ruble-denominated consumer loans to Russia’s Uralsib bank.
The forthcoming sale of the unit to Renaissance Capital in Russia is expected to result in a pre-tax loss of roughly $1.2 billion. “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,” the bank said in a separate statement.
CTA is an accounting practice that records gains or losses from converting a foreign subsidiary’s financial statements from the local currency to the parent company’s reporting currency. Citigroup noted that the loss could fluctuate further due to foreign exchange movements.
The bank will classify its remaining Russian operations as “held for sale” as of the fourth quarter of 2025. Last month, Russian President Vladimir Putin authorized Renaissance Capital to acquire Citigroup’s Russian business, with the transaction expected to finalize in the first half of 2026, according to a US Securities and Exchange Commission filing.
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