Citi Secures Green Light to Divest Russian Banking Unit to Renaissance Capital, Bolstering Capital Position

Citibank has officially announced receiving internal approvals to proceed with its planned disposal of AO Citibank, marking the bank’s exit from Russia. Renaissance Capital has been identified as the buyer for this transaction, with closure anticipated during the first half of 2026, pending regulatory authorization and standard closing conditions.

The strategic decision carries important implications for Citi’s financial standing. While the sale will trigger a pre-tax loss in the fourth quarter of 2025—primarily stemming from currency translation adjustment (CTA) losses—these accounting impacts are set to be managed through Accumulated Other Comprehensive Income (AOCI). The CTA realized during the sale, combined with amounts subsequently released from AOCI at closing, will prove capital-neutral relative to Citi’s CET1 Capital ratios.

Capital Benefits and Risk Reduction

The broader significance lies in the overall capital advantage that Citi expects to realize. By deconsolidating the Russian operations’ associated risk-weighted assets from its books, the banking giant stands to strengthen its CET1 Capital position materially. This risk-weighted asset reduction represents a substantial boost to the bank’s capital metrics—a key driver of regulatory capital ratios and financial flexibility.

It’s worth noting that the loss on sale figure may undergo adjustment as foreign exchange fluctuations continue through the transaction period. However, management remains confident that the Russia divestiture will deliver a meaningful capital benefit on a consolidated basis, offering Citi improved operational focus and capital efficiency as it reallocates resources away from the Russian market.

The transaction remains subject to final regulatory approvals and customary closing conditions before it reaches completion in 2026.