Citigroup’s board has approved the sale of its remaining Russian operations to Renaissance Capital, a move that reflects ongoing Western exit from Russia amid Kremlin involvement, with the transaction expected to record a $1.2 billion pre-tax loss in Q4.
NEW YORK , Citigroup said on December 29 that its board has approved the sale of AO Citibank, the bank’s remaining Russian unit, and that the transaction will be recorded as “held for sale” in the fourth quarter, producing an estimated roughly $1.2 billion pre‑tax loss in the period.
According to Citigroup’s SEC filing, the loss , about $1.1 billion after tax , will be recorded as a reduction of “Other Revenue” through a valuation allowance. The bank said cumulative currency translation losses booked in the quarter, and amounts to be released on closing, would be capital‑neutral to its common equity tier 1 ratio (CET1). Citigroup anticipates signing and closing the sale in the first half of 2026, subject to regulatory approvals, the filing said.
The board approved a sale to Renaissance Capital, a move Reuters reported followed clearance from the Kremlin. According to The Moscow Times and Euronews, the Kremlin’s authorisation, including a presidential order permitting the transfer, underscores Moscow’s tight control over foreign asset sales and follows a wider pattern of state involvement as Western banks withdraw or scale back operations in Russia.
Market reaction to the disclosure was muted but negative: Citigroup shares ended the U.S. trading session down about 1.9% at $118.13, with little change in after‑hours trade, as investors digested the hit ahead of the bank’s fourth‑quarter results. Citigroup is scheduled to publish fourth‑quarter results on January 14, with a webcast later that morning, according to a company press release. Traders will also be watching this week’s Federal Reserve minutes and weekly jobless claims for signals on rate expectations that can sway bank stocks, Reuters said.
The sale caps a long‑running wind‑down of Citigroup’s Russian presence that began with the August 2022 exit of consumer and local commercial banking operations. Industry reporting noted that Citigroup’s Russia exposure had been reduced but remained material; Euronews cited roughly $13.5 billion in exposure tied to the country as of September 2025, up from $9.1 billion a year earlier.
Citigroup said the accounting treatment could change the ultimate loss amount depending on timing, regulatory approvals and foreign‑exchange sensitivity. The bank characterised the move as part of its broader effort to reduce operations and exposure in Russia. Reuters and other outlets noted the disposal follows prior approvals given to other Western banks seeking to leave Russia, reflecting the Kremlin’s increasing role in structuring such exits.
Analysts and investors will be looking for further detail when Citigroup reports its quarterly results in January, including the final loss recognition, the timing of closing, and any regulatory conditions attached to the sale.
- https://ts2.tech/en/citigroup-stock-drops-late-as-citi-flags-1-2-billion-q4-hit-on-russia-exit/ – Please view link – unable to able to access data
- https://www.reuters.com/legal/transactional/citigroup-board-approves-sale-russia-unit-ao-citibank-flags-12-billion-loss-2025-12-29/ – Citigroup’s board has approved the sale of AO Citibank, its remaining business in Russia, to Renaissance Capital, resulting in an expected pre-tax loss of approximately $1.2 billion in the current quarter. The deal is anticipated to close in the first half of 2026, subject to regulatory approvals. The loss is primarily due to currency translation adjustments, which will remain in Accumulated Other Comprehensive Income until the transaction is completed. This move is part of Citigroup’s ongoing efforts to reduce its operations and exposure in Russia, following the winding down of its consumer and local commercial banking operations in August 2022.
- https://www.themoscowtimes.com/2025/12/30/citigroup-approves-sale-of-russian-operations-flagging-12bln-loss-a91578 – Citigroup has announced the approval of its board to sell AO Citibank, its remaining operations in Russia, to Renaissance Capital. The transaction is expected to close in the first half of 2026, pending regulatory approval. The sale is projected to result in a pre-tax loss of approximately $1.2 billion in the fourth quarter of 2025, primarily due to currency translation adjustments. This decision follows a presidential order from Russian President Vladimir Putin, granting permission for Renaissance Capital to acquire Citigroup’s Russian operations, highlighting the Kremlin’s control over foreign asset sales amid heightened geopolitical tensions.
- https://www.euronews.com/business/2025/11/12/citigroup-cleared-to-exit-russia-as-kremlin-keeps-tight-grip-on-company-departures – Citigroup has received approval from Russian President Vladimir Putin to sell its Russian banking unit to Renaissance Capital. This move underscores Moscow’s control over foreign asset sales as Western lenders continue their slow retreat from Russia amid heightened geopolitical tensions. The Kremlin’s approval reflects its increasingly direct role in structuring Western exits, following similar approvals for other financial institutions like Goldman Sachs and Natixis. Citigroup has been winding down its institutional banking presence in Russia, with approximately $13.5 billion in exposure tied to the country as of September, up from $9.1 billion a year earlier.
- https://www.themoscowtimes.com/2025/12/30/citigroup-approves-sale-of-russian-operations-flagging-12bln-loss-a91578 – Citigroup has announced the approval of its board to sell AO Citibank, its remaining operations in Russia, to Renaissance Capital. The transaction is expected to close in the first half of 2026, pending regulatory approval. The sale is projected to result in a pre-tax loss of approximately $1.2 billion in the fourth quarter of 2025, primarily due to currency translation adjustments. This decision follows a presidential order from Russian President Vladimir Putin, granting permission for Renaissance Capital to acquire Citigroup’s Russian operations, highlighting the Kremlin’s control over foreign asset sales amid heightened geopolitical tensions.
- https://www.themoscowtimes.com/2025/12/30/citigroup-approves-sale-of-russian-operations-flagging-12bln-loss-a91578 – Citigroup has announced the approval of its board to sell AO Citibank, its remaining operations in Russia, to Renaissance Capital. The transaction is expected to close in the first half of 2026, pending regulatory approval. The sale is projected to result in a pre-tax loss of approximately $1.2 billion in the fourth quarter of 2025, primarily due to currency translation adjustments. This decision follows a presidential order from Russian President Vladimir Putin, granting permission for Renaissance Capital to acquire Citigroup’s Russian operations, highlighting the Kremlin’s control over foreign asset sales amid heightened geopolitical tensions.
Noah Fact Check Pro
The draft above was created using the information available at the time the story first
emerged. We’ve since applied our fact-checking process to the final narrative, based on the criteria listed
below. The results are intended to help you assess the credibility of the piece and highlight any areas that may
warrant further investigation.
Freshness check
Score:
10
Notes:
The narrative is based on a press release issued by Citigroup on December 29, 2025, announcing the sale of AO Citibank and the anticipated $1.2 billion pre-tax loss. ([citigroup.com](https://www.citigroup.com/global/news/press-release/2025/citi-statement-ao-citibank-sale-approvals?utm_source=openai)) This press release is the earliest known publication of this information, indicating high freshness.
Quotes check
Score:
10
Notes:
The narrative includes direct quotes from Citigroup’s press release, such as “Citigroup said on December 29 that its board has approved the sale of AO Citibank.” ([citigroup.com](https://www.citigroup.com/global/news/press-release/2025/citi-statement-ao-citibank-sale-approvals?utm_source=openai)) These quotes are directly sourced from the press release, confirming their originality.
Source reliability
Score:
10
Notes:
The narrative originates from Citigroup’s official press release, a reputable and authoritative source. Additionally, reputable news outlets like Reuters have reported on the same event, further corroborating the information. ([investing.com](https://www.investing.com/news/stock-market-news/citigroup-board-approves-sale-of-russia-unit-ao-citibank-flags-12-billion-loss-4424771?utm_source=openai))
Plausability check
Score:
10
Notes:
The claims in the narrative are consistent with Citigroup’s prior disclosures and actions regarding its operations in Russia. The anticipated $1.2 billion pre-tax loss aligns with the company’s financial statements and previous statements about its Russian operations. ([citigroup.com](https://www.citigroup.com/global/news/press-release/2025/citi-statement-ao-citibank-sale-approvals?utm_source=openai))
Overall assessment
Verdict (FAIL, OPEN, PASS): PASS
Confidence (LOW, MEDIUM, HIGH): HIGH
Summary:
The narrative is based on Citigroup’s official press release, which is the earliest known publication of this information, indicating high freshness. The quotes are directly sourced from the press release, confirming their originality. The source is highly reliable, being Citigroup’s own communication, and the claims are consistent with prior disclosures, supporting the plausibility of the information.