Citigroup says it will shut down Russian consumer business

People walk under the logo of a Citibank branch in the financial district of San Francisco, California July 17, 2009. REUTERS/Robert Galbraith

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Aug 25 (Reuters) – Wall Street giant Citigroup Inc will close its retail and commercial banking operations in Russia from this quarter and expects to incur around $170 million in charges over the next 18 months, the company announced Thursday.

The US bank with the largest presence in Russia announced plans in April 2021 to exit retail as part of a broader exit from some foreign markets. He widened the scope of that exit in March to include local commercial banks after Russia invaded Ukraine, but was unable to find a buyer for either. activities.

The shutdown will affect about 2,300 of Citi’s 3,000 employees in Russia at 15 branches, the bank said. Citi joins other major Wall Street players that have also closed or announced their intention to close operations in Russia, in accordance with sanctions imposed by Western countries.

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Citigroup disclosed that its exposure to Russia stood at $8.4 billion as of June 30. read more

“We have explored several strategic options to sell these businesses over the past few months,” Titi Cole, managing director of Citi Legacy Franchises, said in a statement. “Clearly the slowing route makes the most sense given the many complicating factors in the environment.”

The exit will affect deposit accounts, investments, loans and cards.

Chief Executive Jane Fraser, who took the helm last year, has moved to simplify the Wall Street giant that has shrunk its overseas footprint by exiting non-core markets, recently announcing deals to sell its consumption in Bahrain and India.

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Reporting by Lananh Nguyen in New York and Manya Saini in Bangalore; Editing by Shinjini Ganguli and Shailesh Kuber, Kirsten Donovan

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