Citi Secures Internal Authorization To Divest Russian Operations To Renaissance Capital

Citi has finalized its internal clearance to advance with the divestiture of AO Citibank, marking the conclusion of the financial institution's operational footprint in Russia. Renaissance Capital is poised to acquire the Russian subsidiary, with transaction closure anticipated within the first half of 2026, contingent upon obtaining regulatory approvals and fulfilling standard closing conditions.

The authorization triggers a pre-tax loss allocation in the fourth quarter of 2025, predominantly stemming from currency translation adjustments (CTA). These CTA-related losses will be temporarily retained within Accumulated Other Comprehensive Income (AOCI) pending the transaction's completion. Upon closing, the cumulative CTA impact and released AOCI amounts are structured to achieve capital neutrality relative to Citi's Common Equity Tier 1 (CET1) Capital position.

While the realized loss on sale remains subject to fluctuations driven by foreign exchange volatility, Citi's strategic exit from Russia is projected to generate a net capital benefit. This advantage stems primarily from the deconsolidation of risk-weighted assets associated with the Russian operations, which will favorably impact the institution's CET1 Capital metrics. The divestiture represents a significant step in streamlining Citi's global footprint and reallocating capital toward higher-priority markets and business segments.