Citi has secured internal approval to sell its remaining Russian business to Renaissance Capital, a move expected to complete in 2026 and result in a sizeable accounting loss largely driven by currency effects.
Citi has cleared the internal hurdles required to move ahead with the disposal of its last remaining business in Russia, as Western multinationals continue to grapple with legal, regulatory and financial barriers to exiting the country.
The US lender said earlier this week that it has secured all necessary internal approvals to proceed with the sale of AO Citibank, which houses Citi’s remaining Russian operations, to investment group Renaissance Capital. Citi confirmed that the transaction, once signed, is expected to close in the first half of 2026, subject to regulatory consent and other customary completion conditions.
In a filing with the US Securities and Exchange Commission, the bank said it anticipates recording a pre-tax loss of around $1.2 billion, or approximately €1.02 billion, in the fourth quarter of 2025, translating to about $1.1 billion, or €936 million, after tax. Citi said the bulk of the loss reflects cumulative currency translation adjustment losses arising from long-term exchange rate movements rather than the underlying performance of the business.
Around $1.6 billion of the projected loss is linked to currency fluctuations over time, partially offset by the expected sale proceeds and other balance sheet adjustments. These currency-related losses are currently held separately on Citi’s balance sheet and will only be recognised in the income statement once the transaction is completed, a treatment the bank said would not weaken its core capital position.
Citi cautioned that the final loss figure could still change, particularly if foreign exchange rates shift before the sale is finalised. The bank also said it plans to classify its remaining Russian operations as held for sale in its fourth-quarter 2025 financial statements, where the business is currently reported across its Services, Markets, Banking and legacy franchise segments.
Despite the expected accounting hit, Citi said the exit from Russia should ultimately strengthen its common equity tier one capital ratio, largely because the sale will remove associated risk-weighted assets from its balance sheet.
Citi is among a number of Western companies that have found it harder than expected to fully withdraw from Russia following the country’s full-scale invasion of Ukraine. Although hundreds of businesses announced plans to leave in 2022, many have since delayed or modified their exits, pointing to the size of the domestic market and the growing complexity of disposing of local assets.
In recent years, Russian authorities have tightened the rules governing foreign exits, introducing requirements such as state approvals, mandated sale discounts and additional levies on divestments, which have made transactions slower and, in some cases, less economically viable.
Citi has previously reduced the scale of its Russian activities and said it continues to wind down its presence while managing regulatory and operational constraints. The bank added that the proposed sale remains exposed to execution risks and regulatory uncertainty, meaning both the timing and the final terms could still be subject to change.
